BARD Santner Investors, one of the the fast-growing asset management firms, this week pushed to capture the market with a unit trust product, the Bard Santner Gold Coin Unit Trust, offering investors an inflation-proof asset denominated in hard currency.
Speaking at the launch in Harare on Monday, Bard executive director Alfred Mthimkhulu (pictured) said the new product will enable low-income earners affordability and access to the the gold coins to save money for different purposes.
The instrument is designed to ensure financial inclusion and contribute to resuscitating a disappearing savings culture in Zimbabwe. The underlying asset of the unit trust is the Mosi-oa-Tunya Gold Coin issued by the Reserve Bank of Zimbabwe (RBZ).
In this initiative, Bard is the fund manager responsible for investing unitholder funds, while CABS is the trustee. The trustee keeps the fund assets in custody on behalf of unitholders.
The minimum investment is US$120. Alternatively, investors can invest in monthly instalments of US$15 or equivalent in Zimbabwean dollars, at the bank rate.
Currently Zimbabwe has a severe shortage of investment funds, which has constrained growth. There is need to address this problem by ensuring a certain level of short-term, medium-term and long-term savings to meet the investment needs of the economy.
Long-term savings are more suitable for investments, hence the government and private sector, including Bard Investors, should try to drive savings through various initiatives.
The Reserve Bank of Zimbabwe (RBZ) Monetary Policy Committee resolved on 24 June 2022 to introduce gold coins into the market as a store of value.
The coin, made available to the public on 25 July 2022, has certain salient features and characteristics. It is liquid and tradable.
The coin will have liquid asset status; it can easily be converted to cash, and will be tradable locally and internationally.
The coin may also be used for transactional purposes. From 15 November 2022, the RBZ started providing gold coins in smaller units of a tenth of an ounce, quarter ounce and half ounce. More than 11 000 coins worth ZW$11.5 billion have been sold.
Bard seeks to enhance accessibility and investment in gold coins by making them affordable. Gold is a defensive asset, which makes it a good asset to hold so as to withstand market and exchange rate volatility so prevalent in the world in these times.
The Unit Trust is registered under Collective Investment Scheme Act, which is administered by Securities and Exchange Commission. — STAFF WRITER.