Timiza Fund, the new collective investment scheme managed by Zan Securities Limited, has raised a total of 10.38bn/- on its debut sale, which is equivalent to 103.8 percent of the targeted 10bn/-, pushing more Tanzanians entrance into the capital markets.

Abdisalaam Issa Khatib, board chairman, Zan Securities Limited, said yesterday during the announcement of the initial units’ sale results that the open ended unit trust scheme is part of implementation of the broking and investment advisory firm’s five year strategic plan.

The former deputy finance minister said the objective of the new scheme, which is under Mwanga Hakika Bank as the custodian bank, is to enhancing financial and investment services, promoting financial inclusion and economic empowerment among Tanzanians.

He said the scheme’s offer document and fund management contract were approved by the Capital Markets and Securities Authority (CMSA) on April 15th, while the sale of units started from May 27th to June 26th this year.

According to Raphel Masumbuko, chief executive officer of the fund’s manager, the scheme which set 10,000/- as initial investment has attracted 280 investors, of which at least 60 percent are retail investors.

Alfred Mkombo, the director of Research and markets development, CMSA, said Timiza fund complied with laws and regulations governing capital markets as it is part of promoting financial inclusion as stipulated in the 3rd National Financial Inclusion Framework of 2023-2028.

“Activities on the capital markets are conducted in accordance with the laws, regulations and guidelines to ensure openness and rights to all players,” he said.

 “The capital markets enable the mobilization of finance and long term financial resources for financing development projects. These funds can be obtained through the sale of shares, corporate bonds, institutional bonds, government bonds and units through collective investment schemes.”

He said the Timiza fund’s achievement is a testimony of investor confidence to the fund’s manager and the capital markets at large.

“CMSA would like to assure the public that the capital markets are safe and sustainable and this is the result of increased public education by the authority and other stakeholders as well as an enabling environment for investments,” he said.

He said CMSA has lowered the amount of minimum investments to 10,000/- from 1m/-, which has attracted many people to invest in capital markets.

The CMSA director said the low risky mobilized funds will be invested in equities and securities markets and the investment certificates can be used as collateral for borrowing.

“The investment in the collective investment scheme is secure with low risk,” he said.

 David Mtenda, the investment officer, National Social Security Fund (NSSF), one of the institutional investors of the fund said good return of 13 percent per annum and the fund manager’s good corporate governance are the main reasons that attracted the social security fund to invest.

Jagjit Singh, Managing Director, Mwanga Hakika Bank said; “the fund has passed its initial journey by surpassing its collections and this has shown high confidence of investment communities”.

He said the fund provides liquidity for investors who desire to exit the fund, in forms of repurchase by the fund.

“This demonstrates that the money is not locked as you can get your money when you want it,” he said.