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Tapiwanashe Mangwiro Senior Business Reporter

Investment bank Bard Santner is set to introduce a new equity fund on August 1, 2022 which is dominated by stocks listed on the Zimbabwe Stock Exchange (ZSE).

According to the bank, this is a medium-risk fund and suits investors who want to see the value of their portfolios appreciating steadily in real terms over time.

After the initial lump sum investment which is earmarked at a minimum of $10 million, the investor can make monthly deposits of $1 million. The minimum investment period is 120 days with the ZSE All Share Index being the benchmark return.

The fund which will target a return of inflation plus 5 percent will be managed by the company’s executive director Dr. Alfred Mthimkhulu, who is an experienced investment manager having been a broker in the country before.

Bard Santner believes in its vast experience to steer the fund and other future products to success as well as the trust their clients have in them.

Dr Mthimkhulu said, “The Bard Santner Equity Fund is structured to outperform the ZSE All Share index. Our clients know the investment strategies we are beginning to roll out through our products are anchored in research, years of experience and an intimate understanding of our economy.”

As such the fund suits investors determined to build substantial long-term equity portfolios. The fund is also structured to take advantage of short-to-medium term price anomalies in the market, hence the cash and speculative weightings in the asset allocation.

According to the fund manager, the fund will not only target the usual investment targets but will hinge on research and overlooked strong assets.

“We have a long-term view and are bullish on our collective prospects. As such the equity fund is one of the vehicles our clients will use to mop-up some of the fantastic assets on the ZSE, assets that for years have been underrated because of a traditional focus on heavily capitalised companies. Bluechips are not necessarily heavily capitalized,” he added.

In terms of asset allocation, the portfolio is made up of current and emerging blue-chip equities both constituting three-quarters of the fund. The balance of 25 percent weighting is earmarked for taking advantage of short-term opportunities in the equities market

Along with the equity fund, we are launching the Bard Santner Income Fund paying out a real return of an attractive return of 16,5 percent.

s0Dr Mthimkhulu concluded that “We also have a pipeline of unique products and our interest in rolling them out is not merely to broaden options for our clients but complement efforts envisioning the re-emergence of our local capital market as a leader in the region.”

The aim of the fund is to preserve value of local currency-denominated savings. The fund invests in ZSE listed blue-chip firms and a selection of other listed companies with strong cashflows and higher than average growth prospects. – Bloomberg