Mbabane – Eswatini’s collective investment schemes (CIS) industry closed the final quarter of the year on a positive note, with assets under management (AUM) increasing by 3.03% to E10.52 billion from E10.21 billion in the previous quarter, supported by strong local market performance, maturing corporate bonds, and continued inflows from retirement funds.
Retirement funds remained the dominant source of capital in the sector, contributing 72.36% of total assets under management, up from the previous period by 1.03 percentage points. The figures reinforce the industry’s continued dependence on pension-related investments as its primary funding base.
Corporate entities also increased their participation in the market, contributing 10.16% of total assets, a notable rise from 5.45% recorded in the prior period. Meanwhile, contributions from collective investment schemes themselves declined slightly to 5.17% from 5.71%.
On an annual basis, the sector recorded robust growth of 18.09%, with AUM rising from E8.91 billion in the corresponding period last year. Industry analysts attributed the growth to expanding local markets and improved investment activity across several asset classes.
The report further showed increased investor participation from companies and retail investors. Corporate contributions accounted for 20.02% of total funds during the quarter, compared to 18.94% previously, while retail investor participation rose marginally from 11% to 11.30%.
However, insurance firms and savings and credit cooperatives (SACCOs) reduced their exposure during the period. Insurance sector contributions declined from 7.97% to 7.21%, while SACCO participation eased from 2.21% to 1.96%.
In the competitive landscape, Stanlib maintained its position as the largest asset manager despite a marginal decline in market share from 46.90% to 46.78%. The company nevertheless recorded growth in absolute assets under management.
African Alliance strengthened its position in the market, increasing its market share to 41.57% from 41.14%, supported by growth in managed assets during the quarter. Old Mutual experienced a decline in both market share and total assets under management, with its share easing to 10.90% from 11.19%.
In terms of investment allocation, collective investment schemes in associated entities remained the preferred investment vehicle, increasing their share of total AUM to 21.37% from 18.34% in the previous period. Other portfolio assets followed at 14.99%, slightly down from 15.08%.
Treasury bills remained among the top investment instruments despite a marginal decline in allocation to 12.96% from 13.73%, while government bonds accounted for 10.67% of total allocations, down from 12.55% in the prior quarter.
The overall performance highlights sustained confidence in Eswatini’s investment management sector amid improving market conditions and continued institutional investor support.
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