Assets of Malawi\u2019s pension sector grew by 6.86 percent from K302.27 billion in September 2015 to K323.0 billion in March 2016 as pension contributions and investment income surged, the Reserve Bank of Malawi has said.<\/p>\n
In its June 2016 Financial Stability Report, RBM, however, notes that the growth was moderated due to a decrease in market value of listed equities from K123.6 billion in September 2015 to K111.30 billion in March 2016.<\/p>\n
Average monthly pension contributions, according to the report, increased from K3.4 billion in September 2015 to K4.4 billion in March 2016.<\/p>\n
The increase was due to an increase in the number of members from 214,103 in September 2015 to 222,789 in March 2016 and general increase in pensionable emoluments at the beginning of the year.<\/p>\n
\u201cInvestment inequity represented the highest share of pension fund assets at 37.0 percent, followed by government securities at 33.0 percent.<\/p>\n
\u201cDuring the Period under review, investment managers channeled investment assets from equities to government securities in response to a decrease in share prices on the stock market, and increase in yields on government securities,\u201d reads the report.<\/p>\n
RBM, however, warns that the large investment in equity poses a risk that any further drop in market prices would negatively affect the income of pension funds.<\/p>\n
Total investment income of the sector decreased from K6.3 billion in March 2015 to K3.9 billion in March 2016.<\/p>\n
\u201cThis was largely due to losses from equity investments resulting from equity revaluation loss of K7.26 billion between January and March 2016, compared to revaluation gains of K2.67 billion registered in March 2015.<\/p>\n
\u201cNevertheless, the sector registered an increase in interest income from K5.50 billion in March 2015 to K10.17 billion in March 2016. The overall investment income for the sector was, however, 1.2 percent of pension fund assets,\u201d reads the report in part.<\/p>\n
Across the world, pension funds perform important economic functions, such as mobilising and managing savings, providing income stability, making labour markets more efficient and providing exposure to systemic risk in the financial markets<\/p>\n","protected":false},"excerpt":{"rendered":"
Assets of Malawi\u2019s pension sector grew by 6.86 percent from K302.27 billion in September 2015 to K323.0 billion in March 2016 as pension contributions and investment income surged, the Reserve Bank of Malawi has said. In its June 2016 Financial Stability Report, RBM, however, notes that the growth was moderated due to a decrease in […]<\/p>\n","protected":false},"author":3,"featured_media":27925,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-27921","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts\/27921","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/comments?post=27921"}],"version-history":[{"count":1,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts\/27921\/revisions"}],"predecessor-version":[{"id":27926,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts\/27921\/revisions\/27926"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/media\/27925"}],"wp:attachment":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/media?parent=27921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/categories?post=27921"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/tags?post=27921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}