Emmerson Njanjamangezi, Group Features Editor 
ZIMNAT Asset Management Company is set to take control of several funds worth US$5,5 million, which were under the management of Tetrad Financial Services (TFS) Asset Management Company.
TFS, a former subsidiary of the now defunct Tetrad Group, was placed under provisional liquidation in April 2015 with Knowledge Hofisi of Aurifin Capital as the provisional liquidator, before the business was wound up three months later.
“It is hereby notified, in terms of section 15 of the Asset Management Act [Chapter 24:26], that an application was received for the transfer of TFS Capricorn Fund, TFS Venus Equity Fund and TFS Jupiter Equity Fund to Zimnat Asset Management Company (Private) Limited.
“The transfer of funds is necessitated by the liquidation of TFS Asset Management Company (Private) Limited,” read part of the notice in the government gazette.
The unit was considered insolvent as its liabilities exceeded assets by US$1,5 million.
Though TFS was profitable, its capital fell short of the minimum requirement of US$500 000 stipulated by the Securities and Exchange Commission of Zimbabwe as at December 31, 2013.
However, it improved to US$204 000 as at March 31, 2014; US$451 000 by September 30, 2015; and US$788 000 by March 30, 2015.
According to a report by Hofisi, there were indications that the asset management business could have been viable had management been prudent.
“It is not without basis to infer that TFS mobilised funds for Tetrad Investment Bank and ultimately the group before such funds could be channelled in the grey markets.
“According to the information obtained from the company records, Multiridge Finance, a microfinance arm of the group, was capitalised to the tune of US$600 000 using TFS clients’ funds, further showing the level of incestuous relationship that characterised the group,” Hofisi noted in his initial report.
Trustees of the asset management business, Broc Financial Services, who were responsible for overseeing the business, conceded that they were not aware of some properties owned by TFS.
The properties in question — 1 Kenilworth Gardens, 69 Josiah Tongogara and Sanilam Centre in Harare — are registered in the names of companies whose shareholding could not be linked directly to TFS.
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