ZIMBABWE’S asset management industry closed the final quarter of 2025 on a firm footing, underlining the growing importance of collective investment vehicles in mobilising savings and supporting economic activity in the country.
According to the Securities and Exchange Commission of Zimbabwe (SECZim), the sector recorded an aggregate operating profit of ZiG125,97 million during the quarter, with 24 out of 35 asset managers posting positive earnings while 11 reported losses.
The performance reflects the increasing role of asset managers and unit trusts in channelling capital into productive sectors of the economy at a time when investors continue to seek professional fund management, portfolio diversification and inflation hedging opportunities.
In economies such as Zimbabwe’s, where preserving value remains a key concern for both institutional and retail investors, asset management firms play a critical role in deepening capital markets, promoting long-term savings and directing funds towards equities, property, money market instruments and other investment classes.
SECZim said the industry remained adequately capitalised, with the average capital adequacy ratio standing at 6,53 times against the minimum regulatory threshold of 1,0 times.
“Thirty-one out of 35 asset managers were adequately capitalised. The remaining four asset managers failed to meet capital requirements,” SECZim said in its fourth-quarter 2025 report.
The sector also recorded strong growth in funds under management (FUM), driven by fresh inflows and portfolio appreciation.
During the quarter under review, the industry registered net inflows of US$76,23 million and ZiG977,08 million. After converting the United States dollar-denominated FUM at the prevailing official exchange rate as at December 31, 2025, the inflows aggregated to ZiG2,96 billion.
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Total FUM rose to ZiG98,16 billion as at December 31, 2025, representing an 8,34% increase from ZiG90,60 billion recorded in the previous quarter.
The total FUM includes US$2,66 billion in USD-denominated assets translated at the prevailing exchange rate at the end of the period. The industry’s average FUM stood at ZiG2,80 billion.
Market leader Old Mutual Investment Group maintained the largest share of FUM, including collective investment schemes, at 37,32% as at December 31, 2025. It was followed by CBZ Asset Management (Datvest) with 8,97% and TN Asset Management with 8,56%.
The report also showed a shift in investment allocation patterns, with asset managers increasing exposure to equities amid improving activity on the stock market.
“There was an increase in the sector’s exposure to the stock market, rising from 34,97% in the previous quarter to 38,86% as at December 31, 2025,” SECZim noted.
By contrast, the proportion of FUM invested in property declined from 37,29% to 33,24%, signalling a gradual portfolio rebalancing towards more liquid and potentially higher-yielding assets.
Money market investments increased from 11,61% in September 2025 to 12,18% in December, reflecting sustained demand for short-term income-generating instruments.
Exposure to unquoted equities marginally eased from 5,12% to 5,01%, while bond investments declined from 7,56% to 6,41% over the same period.
Cash, call deposits and other investments accounted for the remaining 4,30% of the industry’s total investment exposure.
The continued growth of unit trusts and collective investment schemes is expected to remain critical in broadening financial inclusion by giving ordinary Zimbabweans access to professionally-managed investment products that were traditionally accessible mainly to institutional investors and high-net-worth individuals.
