Recent strong performance by Rwanda National Investment Trust (RNIT) has led to increased shareholder confidence in the Fund.
RNIT Iterambere Fund grew to Rwf1.530 billion in February, up from Rwf1.476 billion in January, according to the Fund’s performance report.
It registered an annual return of 9.8 per cent in its first accounting year.
Shareholders say the increased returns will see them continue to invest in the Fund as they are assured of returns in the coming years.
Jean d’Amour Karamaga, who invested in the Fund, said, “When I first heard about the Fund, I became interested. I started saving about Rwf5000 per month and today I appreciate its performance in a short time,” Karamaga said.
Placidia Ndereyimana, another shareholder, said she learnt about the Fund through the media and then decided to save with it.
Ndereyimana said that she has since learnt that saving with the Fund does not only result in personal returns but it also helps accelerate the progress of the country’s development.
“I feel proud of being a stakeholder in RNIT and hope to invest even more in the future,” she added.
According to officials at the Fund, there is increased demand from university students in particular, with many seeking information on how to save small amounts with the institution.
About 20 per cent of RNIT stakeholders are youth.
Andre Gashugi, the chief executive of RNIT, said they made the profit by investing in the financial sector, among other opportunities.
He said the profits made in their first accounting year marks the first step in the growth of the Fund, assuring stakeholders of continued growth curve.
“The number of stakeholders is still low. We need to keep on sensitising people about savings, especially in young people in order to instill in them the culture of saving. Youth are the future of Rwanda, that’s why we are dedicating our efforts to the youth,” Gashugi added.
RNIT said the Fund recorded a 9.7 per cent profit. The trust also registered an increase of shareholders, to about 1800 in its first year of operations.
RNIT, one of the several government initiatives aimed at boosting national savings – with a target of reaching 20 per cent of GDP by 2020 – is so far doing well, a report by the Fund says.
The growth can partly be attributed to ongoing campaigns to encourage Rwandans to save and invest in various investment vehicles, including Iterambere Fund, Treasury bonds and shares of firms listed on the RSE.
Iterambere Fund is a mutual fund – a pool of money contributed by investors and managed by an asset management company.
Such schemes present members with the power of collective bargain and professional management service.
Investments by the Fund are made in accordance with investment objectives as stated in its constitutive documents like the offer document and trust deed.
This kind of investment vehicle allows small investors to participate in the securities market, thereby providing a platform to this market segment, which does not normally access the market due to high threshold limits of minimum amount to be invested.
Once one buys shares in the Fund, they become part owners of its assets.
The Fund’s returns are fully passed on to the investors, officials said.