By Ntokozo Nkambule
Stanlib Eswatini accounts for 43% of Assets Under Advisory (AUA) in the country. The investment company is followed closely by Old Mutual Eswatini which accounts for 22.2% of AUA.
The Financial Services Regulatory Authority (FSRA) Quarterly Statistical Bulletin Q2, 2022 notes that the total AUA in the country stands at E23, 5 billion. The report observes that a total of E7, 4 billion was invested domestically or held domestically. A total of E12, 4 billion was invested or held in the Common Monetary Area(CMA), and E3, 7billion was held offshore.
The Bulletin notes that the AUA is divided between eight (8) investment advisors, mainly; Stanlib Eswatini, Old Mutual Eswatini, African Alliance, Inhlonhla, Imbewu Yesive, Aluwani, and BLZI.
Worth noting is that AUA realized a 1.3% decline in the quarter under review, which the FSRA attributes to the country’s political climate, changes in consumer preference, following the Covid-19 pandemic, and monkeypox.
The FSRA further reveals that the total value of Assets Under Management (AUM) and Assets Under Advisory (AUA) stood at E31.28 billion for the quarter under review.
African Alliance dominates the market share when it comes to AUM, as they account for 44.8% of the market share followed closely by Stanlib Eswatini at 41.6% and Old Mutual Eswatini at 13.2%.
The AUM has a total value of E7.78 billion and is invested domestically, in the Common Monetary Area (CMA), and offshore.
“The E7.78 billion was distributed between the domestic market which has a total value of E4.70 billion, CMA with E2.52 billion, and offshore investments at E546.71 million in terms of assets under management. It is evident that there is potential for growth in the domestic market. The decrease highlighted above may also be attributed to the increased uncertainty of consumer prices, more and more retail and institutional investors are now withdrawing” notes the report.