Smartvest plots to deliver high income for investors 

By Alois Vinga

SMARTVEST High Income Fund (SHIF) has tabled an aggressive plan to deliver high income and moderate capital growth for investors through disruptive blended strategies in the market.

The Smartvest High Income Fund (SHIF) concern was recently listed on the Financial Securities Exchange (FINSEC) Mutual Funds Boards following regulatory approval by the Securities and Exchange Commission of Zimbabwe (SECZIM)

Briefing delegates during a webinar recently, Smartvest CEO Peter Kadzere and his counterpart Elimon Taundi from  Lincoln Capital, a company collaborating to expedite the SHIF product unveiled plans to raise US$10 million.

To kick off the mobilization units will be sold at US$1 for the first bite of US$10 million.

“SHIF intends to raise up to US$10 million through issuing units in the Smartvest High Income Fund in a Unit Issuance Programme. SHIF seeks to deliver a high level of income and moderate capital growth over time for investors. The fund will invest in short-term secured money market instruments backed by quality loan portfolios to SMEs administered by regulated and licensed financial institutions,” they said.

Finsec Business Development Victor Mukara said despite various efforts made by financial services players to promote financial inclusion since they address the knowledge gap on investment products, there is still low uptake by investors in unit trusts.

He said unit trusts are required to publish regular reports on their performance, these reports may not provide investors with a complete picture of the underlying assets in the fund.

“In addition, some unit trusts may invest in complex financial instruments that may be difficult for investors to understand. Since the industry has shrunk it is very expensive to market therefore these mutual funds lack visibility and cannot attract capital even where superior returns are available,” he said.

Meanwhile, SecZim has announced plans to review the capital adequacy framework for Fund Managers. The capital adequacy ratios shall be included once the new capital adequacy framework is approved.

“Old Mutual Investment Group (OMIG) led the investment management firms with the highest FUM [fund under management] share of 49,76% as at June  30, 2024, followed by TN Asset Management and CBZ Asset Management with FUM shares of 8,61% and 7,87% respectively,” said SecZim.