Equities exposure gnaws at MVA investments

Presenting the 2008 financial highlights to the media on Monday, the Fund's CEO, Cross Kgosidiile, said the poor performance of equities due to the financial crisis had a negative effect on the Fund's reserves which decreased from P1.5 billion in 2007 to P1.1 billion in 2008.Due to the reduced confidence on the market, the BSE also took a knock in 2008 as investors shunned risk and pulled out, weakening share prices in the process, Kgosidiile pointed out.

"Global equities fared badly for the year, given the uncertainty that prevailed as a result of the worldwide financial crisis and the global economic slowdown," he said. "On the local front, financial stocks were hardest-hit with BIHL losing 49.7 percent for the year.FNBB lost 25.9 percent while Barclays lost 19.9 percent."