Online Reporter
Nelson Gahadza
Business Reporter
THE value of assets administered by asset managers, funds under the management, grew by 8,34 percent, driven by a significant increase in investments in equities during the fourth quarter of 2025.
Investments in equities now account for 38,86 percent of asset managers’ combined portfolio.
According to the Securities and Exchange Commission of Zimbabwe’s fourth quarter 2025 newsletter, the sector’s total FUM rose to ZiG98,16 billion as of December 31, 2025, from ZiG90,60 billion recorded in the previous quarter.
This reflects renewed momentum in portfolio allocations and market activity.
SecZim said the growth in managed assets coincided with a notable shift in asset allocation strategies, with fund managers increasing their exposure to equities amid evolving market dynamics.
“There was an increase in the sector’s exposure to the stock market, rising from 34,97 percent in the previous quarter to 38,86 percent as at December 31, 2025,” the Commission said.
Asset managers’ exposure to the property sector, a historically dominant asset class, continued to decline, declining from 37,29 percent in the third quarter to 33,24 percent in the period under review.
Market analysts say the shift suggests a gradual move away from relatively illiquid assets towards instruments offering greater flexibility and potentially higher short-term returns.
According to the SecZim, money market investments also registered a modest increase, rising from 11,61 percent in September 2025 to 12,18 percent by year-end, reflecting a continued need for liquidity and capital preservation within portfolios.
The commission noted a slight decline in allocations to other asset classes. Investment in unquoted equities edged down to 5,01 percent from 5,12 percent, while exposure to bonds dropped more significantly from 7,56 percent to 6,41 percent over the same period.
Cash, call deposits and other investments accounted for the remaining 4,30 percent of total industry exposure.
Market observers say the shift toward listed equities signals growing confidence in the performance outlook of companies on the domestic bourse, particularly as the reporting season begins and early financial results point to volume-driven growth across key sectors.
Of the total FUM, US dollar-denominated assets stood at US$2,66 billion, which was translated into local currency at the prevailing exchange rate as of December 31, 2025. The industry’s average FUM for the period was ZiG 2,80 billion.
Meanwhile, performance within collective investment schemes (CIS) was mixed during the quarter, with ZiG-denominated CIS funds recording a 1,36 percent decline to ZiG1,65 billion from ZiG1,67 billion in September 2025.
In contrast, US dollar-denominated CIS funds posted strong growth, increasing by 29,24 percent to US$138,20 million from US$106,94 million in the prior quarter.
The surge in hard currency-denominated funds reflects sustained investor preference for US dollar-linked instruments as a hedge against local currency risks.
The commission’s report also provides insight into investor activity during the quarter, underscoring the dominant role of institutional players in the equities market.
A total of ZiG 1,19 billion worth of trades were settled through the Chengetedzai Depository Company and the ZSE Depository during the period.
Pension funds emerged as the largest buyers, accounting for 45,36 per cent of total purchases, equivalent to ZiG540,09 million.
Corporations bought the second-highest value of assets at 24,42 percent of total trades worth ZiG290,80 million, while individual investors accounted for a comparatively smaller share of 6,53 percent, purchasing shares worth ZWG77,74 million.
Analysts say the strong participation by pension funds highlights their continued influence in shaping market trends, particularly as they rebalance portfolios in response to regulatory requirements and market conditions.
They contend that the increased allocation towards equities is likely to have supported trading activity on the local bourse, contributing to improved liquidity and price discovery in selected counters.
