TANZANIA: THE Timiza Fund, Tanzania’s pioneering private mutual fund, has exceeded expectations by achieving an oversubscription rate of 103 per cent, driven by its attractive return on investment.
Launched as the country’s first private mutual fund, Timiza successfully raised 10.38bn/- during its initial sales period from May to June, surpassing its 10bn/- target.
Investors have been drawn to Timiza’s impressive 13 per cent return on investment, which significantly outperforms the 8 per cent to 12 per cent returns offered by competing funds managed by UTT AIMS and Faida Fund.
Zan Securities Chairman Mr Abdisalaam Issa Khatibu, underscored the importance of collective investment in broadening access to investment opportunities.
“Collective investment provides a platform for pooling resources, enabling investors to achieve a concentrated financial impact,” Mr Khatibu remarked during a press conference where he shared the fund’s results since its launch.
Zan Securities Chief Executive Officer, Raphael Masumbuko, emphasised that the Timiza Fund is designed to be inclusive, catering to both high and low-income earners.
“The minimal investment requirement makes it an appealing option for a wide range of investors,” Mr Masumbuko noted.
The initial investment was set at 100 units, each valued at 100/-, totaling 10,000/-, a price point that is expected to rise above 100/- per unit due to the high level of oversubscription.
National Social Security Fund (NSSF) Investment Officer, Mr David Mtenda, praised the Timiza Fund for its attractive returns and strong governance.
“We invested in Timiza because of its 13 per cent annual return, which is significantly higher than the 8 per cent to 12 per cent offered by other funds,” Mr Mtenda explained as he received an investment certificate on behalf of NSSF and ten other investors.
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Mr George Mapunjo, a teacher at Jangwani Secondary School, shared that his decision to invest was influenced by the fund’s affordable unit prices and diversified investment strategy.
“The reasonable unit prices and the fund’s name, ‘Timiza’ (meaning ‘fulfill’), inspired me to invest as I strive to achieve my financial goals,” Mr Mapunjo told the `Daily News.’
Mr Alfred Mkombo, Director of Research, Policy and Planning at the Capital Markets and Securities Authority (CMSA), highlighted the progress in the mutual fund sector.
“While our market is still developing, we have ten funds in total, with six managed by UTT-AMIS. The growth in investment awareness is expected to boost the number of funds in the near future,” Mr Mkombo, representing the CMSA Chief Executive Officer, stated.
Mr Jaghjit Singh, Chief Executive Officer of Mwanga Hakika, the custodian and trustee bank for Timiza, noted that the oversubscription indicates strong investor confidence.
“Investors are always seeking growth opportunities and the high demand for Timiza reflects a positive outlook towards the fund,” Mr Singh commented.
Managed by Zan Securities, a fund manager with over 14 years of experience, Timiza is an open-ended fund licensed by CMSA.
Its competitive returns and experienced management are key factors contributing to its success.
