BUSINESS REPORTER
Asset management firm, Bard Santner Investors, says it had turned to gold when it unveiled its unit trust as there is no stable asset other than the yellow metal.
The Bard Santner gold coin unit trust was launched this week and comes six months after the Reserve Bank of Zimbabwe introduced gold coins as an investment alternative and to mop excess liquidity.
Bard Santner Investors executive director Alfred Mthimkhulu said the smallest denominated gold coin was unaffordable for the average household.
According to the central bank, 1Oz gold coins was being sold for US$2,012.85. A gold coin with 0.5Oz was US$1000.43, us$503.21 for a 0.25Oz gold coin and US$201.29 for a 0.1Oz coin.
“We cannot pretend that it is OK for so many to be left out of this innovation. The burden that such products are distributed lies not with the Reserve Bank but with intermediaries in the money and capital markets,” Mthimkhulu said.
The minimum investment in the gold coin unit trust is US$120 which can also be made in monthly installments of US$15 or equivalent in local currency at the prevailing interbank rate.
The underlying asset of the unit trust is the Mosi-oa-Tunya gold coins issued by the RBZ.
Bard Santner Investors is the fund manager while CABS is the trustee. A minimum of 80% of the fund is invested in gold coins with the balance in near-cash securities.
The asset manager said it had turned to gold as it is a defensive asset and can withstand market and exchange volatility prevalent at the material time.
It said global uncertainties brought about by wars and pandemics have seen gold prices increasing by 50% between 2017 and 2022 while global production has shrunk by 10% over the same period.
Mthimkhulu said the gold coin unit trust was his company’s understanding of financial inclusion and empowerment. He said the company sees the innovation as enriching lives and the deepening of the capital markets.
