No Withdrawal Penalties At SIMS

By Wanetsha Mosinyi
Correspondent | Monday August 27, 2007 00:00

SIMS Broker Consultant, Thabo Moipolai, revealed this last Thursday when presenting the unit trust to potential customers at Marang Residency, a part of Marang Hotel, in Francistown. Moipolai told Monitor Business that the equity fund would be launched in a month's time 'if the regulator gives us the go ahead.'  

He said the equity fund will offer investors further options in the product range offered by SIMS. SIMS was presenting its new products, the Managed Prudential Fund and the Money Market Fund, which are intended to offer investors more options in its product range. 

Moipolai said traditionally, investments in local and global equity and bond markets have been seen as complicated, time-consuming or only accessible to large investors, but SIMS is changing that.

'In the past, many of us relied on savings accounts to put something aside for a home, our children's education or retirement. But our investment options give smaller investors access to these types of investments through professional expertise normally only available to larger investors.'

The Managed Prudential Fund is designed to provide long-term capital growth and enhanced levels of short-term income through a combination of equity, interest-bearing and offshore investments. 

'The interest-bearing element of the portfolio reduces the level of volatility when compared with a pure equity fund,' Moipolai said.  The fund provides smaller pension funds and investors with the same investment opportunities usually enjoyed by larger segregated funds. 

This is achieved through investor's funds being pooled together to form a bulk investment into financial markets, thus allowing investors economies of scale benefits.
Moipolai said investing in the Managed Prudential Fund requires a minimum of P2 000 for retail clients. 

'You can buy or sell units at any time and there are no withdrawal penalties or minimum lock in investment periods. It is, however, recommended that an investment in this fund be viewed as a medium- to long-term investment, typically five to seven years.'

He said the income generated from the fund may be withdrawn or reinvested and statements are provided on a quarterly basis. The fund's performance statistics are available on request and investors may switch between other funds in Stanbic's other product range.

The Money Market Fund is a collective investment scheme that invests in a wide range of highly marketable short-term debt securities.   These instruments include short-term government and corporate financial instruments, such as Bankers' Acceptances, Treasury Bills, Commercial Paper and Debt Securities issued by banks, governments and corporations.

Said Moipolai: 'The fund is ideal if you have cash to invest over the medium-term, even though you may need it at relatively short notice.  It is a liquid fund and there are no withdrawal penalties or minimum lock in investment periods either, unlike other term deposits that impose large fees for early withdrawal.'

With a minimum investment of P15 000, the fund provides security by investing in a range of top-rated investment vehicles, hence it is a low risk investment option that pays attention to capital preservation.

Moipolai advised people to appreciate all investment vehicles available on the market so that they may invest in what suits them and get the best returns.  'In this country, people know more about loans than investment. But they should understand that investing is beneficial to your financial wellbeing.

 People should also avoid spending more than what they earn.'