‘Pension funds set to offload stocks’

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ZIMBABWE’S pension funds are primed to offload much of their equity holdings this year in response to liquidity issues confronting them, a wealth management firm has said.
Due to inflation and a lack of “value preserving” investment options in the country, pension funds’ portfolios have become increasingly skewed towards “illiquid” assets such as property.

Imara Asset Management (Imara), however, says there is a risk that funds are overvaluing their fixed asset holdings, the total stock of which they pronounced to have grown from US$225 million to US$671 million during the 12 months.