Lusaka lawyer asks govt to unbundle public pension funds

Monday, August 17, 2009

Lusaka lawyer asks govt to unbundle public pension funds

Lusaka lawyer asks govt to unbundle public pension funds
Written by Nchima Nchito Jr
Monday, August 17, 2009 2:05:29 AM

LAWRENCE Sikutwa and Associates Group chairman Lawrence Sikutwa has asked the government to consider unbundling public pension funds.

During the launch of the Madison Asset Management Company Limited (MAMCo) in Lusaka on Friday, Sikutwa said the government should introduce legislation that would allow private asset management companies to participate in managing public pension funds.

“The unbundling of public pension funds would enhance transparency and improve efficiencies in the management of public funds as a result of the competition that would be created,” he said.

Sikutwa further identified lack of knowledge and understanding of unit trusts as a factor of low penetration rates in this sector.

And Sikutwa said MAMCo was currently managing approximately US $60 million (about K285 billion) worth of assets.

Sikutwa said the company had close to 200 clients in unit trusts, 30 in stock broking and 15 in fund management with more rapid growth still expected.

“MAMCo’s key focus is on product innovation, high quality services and exceptional support to retail and institutional investors,” Sikutwa said. “With the group’s strong focus in the financial services sector supported by its wide branch network, MAMCo will leverage on this strength to gain a foothold in major cities in the country and the region.”

Sikutwa said the introduction of MAMCo in the market would bring competition in the asset management sector, increase trading activity and improve price discovery on the stock exchange.

“We expect healthy competition whose benefits will trickle down to the investors and consumers of financial services,” said Sikutwa.

MAMCo was established in 2008 and is licensed by the Securities and Exchange Commission (SEC) to provide investment policy and fund management services, and is a member of Lusaka Stock Exchange (LuSE).

Labels: LAWRENCE SIKUTWA, MADISON ASSET MANAGEMENT COMPANY LTD (MAMCO), PENSIONERS