Unclaimed shares awareness campaign on cards this year

A nationwide campaign to raise awareness on unclaimed shares is planned this year as $13,63 billion and US$667,568 worth of shares were unclaimed by 30 September 2023.

Investor Protection Fund (IPF) in collaboration with the Securities and Exchange Commission of Zimbabwe (SecZim) has indicated that it will focus on the work of a committee made up of independent stockbrokers and stockbroking firms.

“The unclaimed shares portfolio valuation as at 30 September 2023 stood at ZWL$13,63 billion and US$667 568,” SecZim said in its latest report.

“In 2024, the IPF in collaboration with the Commission, intends to focus on the work of a committee made up of independent stockbrokers and stockbroking firms, which had commenced the process of allocation and interrogation of unclaimed portfolios to arrive at a KYC position which promotes the identification of and claims by the owners of shares in this portfolio.

“Publicity will be key and the IPF proposes to fund a nation-wide all-media campaign to raise awareness and activate claims,” reads part of the report.

Know Your Customer (KYC) is a process of verifying the identities of customers, clients and suppliers and is mainly used in the investment and financial services industry to manage risk and know the financial profiles of customers.

According to the report, the capital market sector remains resilient as measured by Securities Market Intermediaries’ (SMIs) ability to maintain adequate capital and profitability.

During the quarter under review, one dealing firm was licensed, bringing the number of licensed dealing firms to 22 up from 21 as at 30 June 2023.

The report further noted that the funds under management (FUM) as at 30 September 2023 stood at $2,71 trillion, representing a decrease of 11,60 percent from $14,13 trillion reported in the previous quarter.

The industry FUM average for the period under review stood at $427 billion while USD-denominated FUM stood at $21,6 million as at 30 September 2023.

Increase in exposure to property is largely attributable to divestment in equities and long-term investment strategies to tame inflationary pressures.

SecZim said appetite for long term investments is also evident in the steady rise of private equity investments from 4,13 percent in June 2023 to 5,57 percent recorded in the quarter under review.

Cash/call deposits, bonds, and other investments all account for the remaining 4, 15 percent investment exposures for the asset management industry.

The sector’s exposure to the stock market further declined to 36,36 percent from 44, 61 percent recorded in June 2023.

There was a marked increase in property investments from 34, 27 percent recorded in June 2023 to 50, 33 percent reported as at 30 September 2023.

Money market investments fell from 10,59 percent recorded as at 30 June 2023 to 3,59 percent reported as at 30 September 2023.-chronicle