Mergence Lesotho has launched two unit trust investment products - the Mergence Lesotho Equity Unit Trust Fund and the Mergence Lesotho CPI + 4% Fund.

Both unit trusts are available for retail and institutional investors.

Semoli Mokhanoi, Managing Director of Mergence Lesotho, said that the unit trusts will go a long way to opening up investments for the Basotho people who wish to save for their future.

“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 said.

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.

Mergence Investment Managers (Lesotho) is part of the Mergence Group, a diversified financial services holding company founded in South Africa in 2004.

The Lesotho office was officially opened by the Finance Minister on August 3, 2018 and is staffed by Basotho citizens.

The launch of the Lesotho-registered unit trusts builds on Mergence’s existing strong investment track record in Lesotho since 2015.

Through a large private equity fund, Mergence is invested on behalf of the country’s largest pension fund in local infrastructure & development projects.

This fund is focused with 80% of its investments in Lesotho and Mergence aims to launch a second private equity by September 2021, also aimed at institutional investors.

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.”