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Value of assets under custodial management increased to over $3 billion against the December 2016 level of $2,62 billion. The growth was mainly driven by the current bull run on the Zimbabwe Stock Exchange (ZSE).Securities and Exchange Commission of Zimbabwe (SecZim) chief executive officer Tafadzwa Chinamo told an Old Mutual-CABS Custodial Services rebranding breakfast meeting that of the assets under management, over 50 percent is held by CABS Custodial Services.
The $2,62 billion under management in December 2016 represented 60 percent of assets being traded on the ZSE with the balance held by beneficiary owners.
“This is an opportunity perhaps for custodians to tap into the 40 percent segment to grow their portfolios,” he added.
It is in this regard that he said the Commission will on the first week of July embark on an engagement exercise not only for the locals but the diasporans as well to publicise the market.
“ICT platforms are key, however we have failed to utilise them to market the capital markets.
“Many people within the economy do not understand even the first step to purchasing shares on the ZSE. We have a bond market but activity is low because there is no information,” he said.
Commenting on the transformation from Old Mutual Custodial Services to CABS, Mr Chinamo said as regulator, he has comfort that the CABS Custodial Services is adequately capitalised and its risk management systems have been rated to be strong.
“Providing custody services like any business involves risks, but I am happy to report that CABS Custodial Services takes the issue of risk management seriously through having proper and adequate operating and risk management systems as well as an effective board”.
CABS managing director, Simon Hammond said the CABS Custodial Services unit was born out of a de-merger with the group’s asset management company Old Mutual Asset Managers in 2000.
According to Mr Hammond, the book has since grown to $1,44 billion worth of assets as at end of May 2017 from around $740 million in 2010.
Mr Hammond added that the rebranding exercise was necessitated by the aim to meet international best practice that encourages custodians to operate within a banking institution.
“While our custodial services business will take on the CABS brand name, it will continue to operate as a separate company that is regulated by the Securities and Exchange Commission,” he said.
General manager Samson Manyoni however said of the current book, only about $15 million relates to foreign assets while the rest are local. There are only four licenced custodians in Zimbabwe. – Wires.
Online Reporter