Stock markets. Photo by Lorenzo from Pexels

Mianzo Asset Management today launched two affordable unit trust products that will enable ordinary South Africans to invest in financial markets. It has introduced two affordable unit trusts products aimed at helping low-to-middle-income earners access financial markets.

While the Johannesburg Stock Exchange (JSE) has fully recovered from the COVID-19 induced market crash, the market still provides opportunities for bargain-hunters to buy under-valued shares that are poised for strong growth.

The main purpose of these unit trusts is to generate significant real returns for investors who are looking to expand their investment product universe beyond the traditional savings bank accounts. Investors are able to access our unit trusts from as little as R199 per month or for an initial minimum lump sum of R1999.

These products have been designed for ordinary South Africans, particularly blue-collar workers, mid- level office professionals, emerging business owners, and informal traders, who are eager to invest in the stock market (equities) and listed-debt market (money market & bonds).

The Mianzo Equity 27four Unit Trust will solely invest funds in JSE-listed shares. This product has a potential of generating higher returns relative to other asset classes like bonds and cash. That said, there are concomitant risks associated with this asset class. This fund aims to out-perform the benchmark, average market performance, over rolling 3-year periods.

The Mianzo Inflation + 3% 27four Unit Trust is a diversified portfolio fund designed to beat inflation and preserve the purchasing power of investors’ funds. The fund will invest in shares, bonds, cash and money market instruments. This fund also has an ability of accessing offshore equity exposure as well.

Both these unit trusts will have tax-free versions, whereby investors will be exempted from paying dividend withholding tax (charged at 20%), income tax (maximum charge at 45%) and capital gains tax (maximum charge at 18%) on their investments if they meet certain requirements.

Some of these requirements are that the investor must be a person (minors can invest as well) and can invest at most R36, 000 per year. The lifetime investment is limited to R500, 000.

“The easing of lockdown regulations to level 1 was a much-needed shot in the arm for the local economy and should support market recovery going forward. This is still the right time for investors to come into the market and pick up bargains that will provide superior growth into the future,” said Zukile Nchukane, Head of Business Development at Mianzo Asset Management, a black-owned financial services company with R8 billion worth of assets under management.

“There are few investment products that cater specifically for low- to middle-income earners. The popular forms of investment products for this type of an investor has traditionally been the 32-day bank account and general savings accounts, which typically generate low real returns compared to unit trusts. Especially given the very low level that interest rates have currently fallen to. At these low interest rates, it is tempting to borrow and spend, but the smart choice is to invest for the future.”

In addition, Mianzo offers a Living Annuity with the Mianzo Inflation+3% 27four Unit Trust as the underlying fund. This product is targeted at retirement fund members who are about to retire and are looking for affordable and inflation-beating annuity products.


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