Bond Fund should be at the tip of Tanzanians

LAST month Dar es Salaam business and investors fraternity witnessed a great event where a new collective investment scheme was introduced.

The scheme known as ‘Bond Fund’ formed by a government owned company, UTT Asset Management and Investor Services (UTT-AMIS) was launched by the Permanent Secretary in the Ministry of Finance Doto James.

Speaking during a colourful event held at Julius Nyerere Convention Centre (JNCC) in Dar es Salaam, Mr James praised UTT AMIS Board of Directors for the job well-done that culminated into the formation of the new collective investment scheme.

“Then you should insist on public education to give opportunities to a big number of Tanzanians to contribute in their nation’s economy growth. “The government formed this company; UTT AMIS (under Ministry of Finance) to give Tanzanians opportunity to invest in the then privatising public companies. “So it is of importance to prioritize and push forward public education and give Tanzanians chances to be part of industry economy, we are building right now. We at the government we will oversee it,” said the PS, who seemed eager to see the citizens become aware of opportunities available in UTT AMIS.

Mr James, who honoured the event, directed the UTT AMIS Board of Directors to submit special request to the ministry, asking it to help them secure more jobs related to property management.

Previously, UTT AMIS Chairman of Board of Directors, Casmir Kyuki, said the company’s Property Management Department had only two buildings to manage in Dar es Salaam; TPA House and Ushirika House, while it is well equipped with both manpower and equipment.

“The buildings were under UTT-PID before it was dissolved and some of its functions incorporated to UTT AMIS, but this is not enough for us. We need more jobs opportunities (within the government),” said Kyuki.

Back to the business, Kyuki told Mr James that the Board along with a number of stakeholders worked tirelessly in the past months to prepare the new schemes’ proposal before submitting it to the Capital Market and Securities Authority (CMSA) as required by laws and regulations.

“It was when we were satisfied that our proposal met all criteria and then we submitted it to CMSA for authorisation. It was real hard work but we endure it for it was part of our contribution to the positive results of the government’s efforts to grow Tanzanian economy,” he said.

In his speech before Treasure PS and attended stakeholders, UTT AMIS Managing Director, Simon Migangala, said currently they serve more than 145,000 investors from all corners of the country at the tune of a bit above 300bn/- under the patronage of CRDB Bank.

“UTT AMIS has established itself as the trendsetter and a leader in the field of collective investment schemes in Tanzania. We manage five funds namely Umoja Fund, Wekeza Maisha, Watoto Fund, Jikimu Fund and Liquid Fund. Generally the financial performance of the schemes has been exceptionally sound and has provided very high returns to our investors,” he said.

Migangala said in general literature from different funds in similar investment shows season effects at current times, especially around Africa, and added: “It is obvious, according to the ‘share index’, that there is a drop in Africa. For instance, Kenya shares market drop for 12 per cent, Uganda (10.9), Nigeria (20.9), Ghana (3.4), Zambia (10.5) and nine percent drop of share market has been noticed in Tanzania.

“This means Tanzanian share market is doing fairly well compared to others. But generally there are no negative effects to Bond Fund.” Migangala said Bond Fund is open for investment to all domestic and foreign investors; hence investors from all over the world are welcome and encouraged to join it.

According to investment expatriates, Bond Fund is open ended fixed income unit trust scheme that invest in low risk treasury bonds, listed corporate bonds and money markets investment. Since the objective of UTT AMIS is to bridge and to widen the participation of all Tanzanians in the capital market, the initial investment into this fund will be as low as Sh. 50,000.

“In order to cater different demographics, bond fund offers three plans; reinvestment plan, monthly income distribution plan and semi-annual income distribution plan,” said Head of Markets and Communication of UTT AMIS, Daudi Mbaga.

He said in the Bond Fund investors investing from Sh. 10,000,000 will be eligible to receive monthly income and those, who will invest 5m/-and above, who will be eligible to receive semiannual income distribution.

“Bond Fund will also cater to those investors who will invest 50,000/-and above by benefiting capital appreciation. It will charge neither entry load nor exit load thus investors shall be allowed to purchase as well as redeem units at the prevailing applicable NAV. After cool off period, investors will be eligible to buy units worth Sh. 5,000 and above,” said Mbaga.

Units’ sales started on September 16 this year and the initial sales are expected to end on October 15, 2019. Dividends, according to UTT AMIS brochures, will be issued every month or biannual depending on the investor’s will or option.

“The first dividend for illegible ones will be in ten working days of February 2020,” said Mbaga, adding that it will be every month. Furthermore, being an investment house with great success, Bond Fund investors will also enjoy the purchasing and repurchasing of this new fund via UTT AMIS SIM Invest Application through their mobile devices.

Similarly, during initial sale as well as subsequent sale period, scheme units can be acquired through any of the following authorized entities: Any CRDB Bank branches, offices of the licensed dealing members of Dar es Salaam Stock Exchange (DSE), Tanzania Securities Ltd, Solomon Stockholders and others along with all Tanzania Posts Corporation offices.

“We are delighted with the desirable returns that our investors have enjoyed since inception of our funds. We are equally delighted to invite them to join us and enjoy Bond Fund by visiting our offices in Dar es Salaam and in Dodoma at PSSSF building,” said Mbaga.

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