Imara rules the roost: Aon

IMARA Asset Management managed to grow its portfolio by 31,03 percent in the year to December 31 2013, helping it become the best performing discretionary balanced portfolio according to stats from Aon Consulting. According to the performance survey, Imara was the leading asset manager followed by Tetrad with a growth of 24,62 percent and ABC with a growth of 21,81 percent.

Zimnat Asset Management which started the year on a low base was fourth with a growth of 21,28 percent and is slowly gaining ground on the leaders.

Overall it was a tale of two halves for asset managers with most of them registering significant growth in the first half of last year on the back of the stock market rally.

As at June 30, Imara Asset’s portfolio, which is heavily skewed towards equities, had a year to date growth of 33,32 percent, the highest growth in the firms surveyed by Marsh Employee Benefits.

However the fund had slowed down in the second quarter to just a 12,27 percent gain from 18,75 percent in the first quarter.
The growth in portfolio’s slowed further after the stock markets precipitous decline from the time the election results were announced wiping out the gains made by fund managers.

The Zimbabwe Stock Exchange lost 22 percent after the announcement of the results after having gained almost 50 percent.
There are currently only 15 asset management firms in the country, which is down from 25 in 2003, managing an estimated US$1,5 billion to US$2 billion in assets.

The drastic decline of operators in the sector has been blamed on unreasonably high capital adequacy requirements, regulatory challenges, onerous licensing, and at times, indiscipline by players in sector.

Under new regulations from the Securities and Exchange Commission new Asset Managers will be required to submit Memorandum and articles of association together with the certificate of incorporation.

The minimum capital requirement is pegged at US$500 000, while a business plan will also be needed.
Initial registration will require US$10 000 while yearly renewal will be pegged at US$3000.

The business should also be insured to an amount that will be worked out by the respective insurance company dependent on the risk. – FinX.