In financial planning, finding the right investment avenue that balances risk and returns is paramount. The recently launched Private Unit Trust by Zan Securities emerges as a beacon of stability and growth, offering a meticulously crafted investment policy that blends prudence with potential.
Investment Policy for Sustainable Growth
The trust’s investment policy sets a prudent limit on shares and bond allocation, ensuring that no more than half of the portfolio is exposed to the stock market’s volatility. This cautious approach is complemented by a balanced portfolio strategy that divides investments between bonds and shares, mitigating risks while maximizing returns.
Diversification is the cornerstone of the trust’s investment philosophy. By spreading investments across various asset classes based on the investors’ risk appetite, the trust ensures that no single market fluctuation can significantly impact the overall performance of the portfolio. This strategy not only safeguards investments but also opens doors to new opportunities for growth.
The trust’s benchmarking strategy is as robust as its investment policy. With a benchmark of 10 years and an interest rate ranging from 13% to 15%, investors can expect steady and consistent returns that outperform traditional savings accounts or fixed deposits.
Also, read Bridging the Gap with Tax Reforms for Real Foreign Investment.
This benchmark serves as a guidepost, guiding the trust towards achieving its growth objectives while ensuring that investors’ interests are always prioritized.
Income Distribution: Rewarding Investors’ Trust
One of the trust’s most appealing features is its income distribution policy. Earnings are distributed in cash, reflecting the increment in interest earned. For instance, the fund offers two selling liquidity plans to investors. The first is a dividend payout plan, where investors receive income redistribution based on the interest earned.
For example, an investment of TZS 1,000,000 will earn TZS 1,500,000, a 15% annual increment. The second plan is a reinvestment plan, where there is an annual growth in the share price unit, compounding over time. For instance, assuming an investment of TZS 100,000 each month, the total yearly investment will be TZS 1,200,000, resulting in 1,200 units considering the share price unit currently standing at 100 Tanzanian Shillings.
The unit price increment will be TZS 132,000 (1,200,000 x 0.15, the 15% interest earned annually), with a liquidity value getting to TZS 198,000 (1320 x 150) when selling. Hence placing 1,398,000 in your portfolio.
NB:
- i) 1320 Tanzania Shillings is a function of the share unit increment and the original unit price, in simpler terms: share unit increment/unit price.
- ii) 150 Tanzania Shillings is an assumption of the increment in the share unit price from 100 Tanzanian Shillings, hence 50 Tanzanian Shillings.
Accessible and Convenient Investment Options
Investing in the Private Unit Trust is not only financially rewarding but also incredibly convenient. Units can be purchased through Mwanga Hakika Bank or CRDB Bank, with plans to introduce mobile money transactions soon. This accessibility ensures that investors can manage their investments with ease, empowering them to take control of their financial future.
Before the initial purchase, visit the Timiza fund website or Zan Securities offices at Viva Tower, Posta on the first floor to get more advice or grab an application form.
There are important dates to note for this fund, which are:
Opening of the offer: 27 May 2024
- This marks the start of the initial sale period when interested parties can begin participating in the offer.
Closing of the initial sale: 26 June 2024
- This is the deadline for participating in the initial sale. After this date, no further participation will be accepted for this initial round.
Cool-off period: 27 June 2024 – 11 July 2024
- This period allows participants to reconsider their decisions and withdraw if necessary. It provides a window for any changes or cancellations before the final results are announced.
Notification of Results: 12 July 2024
- The results of the initial sale will be communicated to participants. This likely includes confirmation of purchases, allocations, or any other relevant outcomes from the sale.
Dispatch of Statements of Account: 15 July 2024
- Participants will receive their statements of account, detailing their transactions, holdings, or other financial summaries related to the initial sale.
Open to subsequent sale: 15 July 2024
- Following the initial sale and the distribution of account statements, the sale will reopen for subsequent rounds. This provides an opportunity for additional transactions or participation beyond the initial offer.
A Secure Path to Financial Growth
In conclusion, the First Private Unit Trust stands out as a secure path to financial growth. With its balanced investment policy, diversified portfolio, and commitment to rewarding investors, it offers a compelling investment opportunity for those seeking stability and growth in their financial journey.
Discrete: This is not a financial advice piece but rather just a snippet of thoughts and break down of the fund. Any action afterwards will be solely based on the reader’s own perusal.
