Both unit trusts are available for retail and institutional investors.
“The main saving that most people make is into their company’s retirement fund, but if you have spare cash available for other investments, unit trusts offer a neat way to invest additional money to grow your retirement savings,” he said.
“To date, very few asset managers are registered to promote unit trusts in Lesotho. We are proud to say that Mergence is now licensed by the Registrar under the Central Bank of Lesotho (Collective Investment Schemes) Regulations, 2018, to make unit trusts available. There is a growing retail market for investments in Lesotho and this means that Basotho citizens now have a choice of unit trust funds which are registered in Lesotho,” he added.
The minimum investment is M500, alternative investors need to have a debit order of M100 per month.
In terms of a risk-return profile, the Mergence Lesotho Equity Unit Trust Fund has a slant to equity/share investments and is medium- to high-risk. The Mergence Lesotho CPI + 4% has an absolute return orientation and a lower risk profile.
“If you have spare cash available for other investments, unit trusts offer a neat way to invest additional money to grow your retirement savings”Semoli Mokhanoi – Managing Director, Mergence Lesotho
The Lesotho office was officially opened by the Finance Minister on August 3, 2018, and is staffed by Basotho citizens.
Mokhanoi said: “While these larger, private equity funds are not open for the public to invest in, many retirement fund members can rest assured that their hard-earned retirement savings are invested in projects in line with the Mergence group ethos of creating shared value, in order to make a positive impact on communities and contribute to economic growth.”