The country’s asset management and capital markets sector has shown mixed performance in the second quarter of 2025, reflecting both resilience and ongoing market pressures.
This is according to the Financial Services Regulatory Authority (FSRA) 2025 Second Quarter Statistical Bulletin, which adds that Stanlib, the country’s largest asset manager, experienced a slight setback in market position despite growing its assets under management (AUM).
| Eswatini Observer WhatsApp Channel
Although Stanlib recorded a 2.38% increase in AUM, its market share fell from 47.38% in the previous quarter to 45.97%.
This shift suggests stronger competition among major players in the industry.
African Alliance, the second-largest portfolio manager, demonstrated notable improvement.
Its AUM grew by 7.68%, driving market share up from 41.63% to 42.48%. This gain reinforces its strong presence and ability to capture investment growth in a challenging economic environment.
Similarly, Old Mutual also recorded impressive gains with its AUM, increasing by 10.88%.
This saw the financial giant’s market share climb from 10.20% to 10.72% quarter-on-quarter.
Inhlonhla also showed solid progress with a 10.45% increase in assets, pushing its market share up to 0.84%.
While still comparatively small, its growth trajectory underscores enhanced confidence in diversified asset managers.
Collectively, the top three market leaders account for 68.20% of total managed assets. Stanlib leads with 45.23% market share, followed by Old Mutual at 11.50% and Inhlonhla at 11.47% during the period under review.
Quarter-on-quarter, the biggest increases in assets were recorded by Imbewu, which surged by 11.45%, followed closely by Old Mutual at 6.31% and Umelusi Capital at 5.77%.
“However, the equity market experienced downward pressure,” reads the report
There were also notable changes in the sources of funds for asset managers. Retirement funds increased from 71.37% to 71.65%. Collective investment schemes (CIS) also rose moderately from 7.42% to 7.64%. Conversely, company-sourced funds dropped sharply from 10.70% to 5.09%.
The most significant growth came from the insurance sector, with allocations rising from 0.84% to 5.39%.
At the same time, retail client contributions slightly declined from 4.69% to 4.20%, while other funding sources increased to 6.41%.
The Eswatini Stock Exchange (ESE) All-Share Index declined by 2.68% from 488.49 points in the first quarter to 475.38 points in the second quarter. FSRA attributes this largely to the 25.53% drop in Greystone Partners’ share price.
Meanwhile, year-on-year, the All-Share Index fell by 3.37%. the decline in share performance also impacted total market capitalisation, which dropped from E6.87 billion to E6.67 billion, a 2.68% decrease quarter-on-quarter.
“A similar year-on-year drop of 3.37% was registered, driven by share price decreases in Greystone Partners, Inala Capital and Swaziland Empowerment Limited,” reads the report.
Despite subdued equity activity, fixed-income markets saw positive movement. Outstanding corporate bonds increased by 1.86% to E1.912 billion, supported by 12 new note issuances against seven maturities during the quarter.
On a yearly basis, the corporate bond market grew by an impressive 21.91%, up from E1.57 billion. Government securities also expanded, with outstanding bonds rising by 3.85% to E6.70 billion from E6.45 billion in the previous quarter.
The FSRA attributes this to higher value of new bonds and re-openings, while maturities for the quarter remained lower.
Year-on-year figures show a 7.68% increase in government bonds from E6.22 billion recorded in the second quarter of 2024.
Retirement funds continue to play a pivotal role in capital mobilisation, making up 38.89% of sourced funds in the second quarter, which is an increase from 37.73% in the previous quarter.
“Retirement funds are a major source of capital due to their long-term investment horizon and consistent inflows,” reads the report.
Eswatini Observer Press Reader | View Here
