A recent report by the Citizen has indicated that the unit values of two Tanzania business projects, Wekeza Maisha and the Umoja Fund, have appreciated, which will result in increased returns for their investors.
Wekeza Maisha is a project in which the goal is to generate a long-term capital appreciation as well as to offer additional benefits including life insurance, personal accident insurance and the coverage of funeral benefits.
According to the report, the unit values of Wekeza Maisha appreciated from TZS 124.6994 to Sh124.9319 last week, thus maintaining its several week pattern of appreciation.
In addition to the appreciation in its unit values, net asset for the company also increased from TZS 1.148 billion to TZS 1.152 billion and, according to a report by the Unit Trust of Tanzania, its outstanding units also increased from 9.207 million to 9.221 million.
Along with this, the Citizen report also emphasized that, because the face value of the unit was TZS 100, pioneer investors in the company are assured of a unit return of at least TZS 24.9319.
Apart from Wekeza Maisha, the Umoja Fund, which is also known as the Umoja Unit Trust Scheme, also witnessed an appreciation in its unit values.
The Umoja Fund is a project that seeks to facilitate the divestiture process and to generally empower individual Tanzanians to become efficient and valuable stakeholders in the development of the country’s economic stability.
According to the Citizen report, this type of collective investment scheme includes several advantages such as the pooling of resources and a reduction in the overall risk taken by individuals as a result of diversification.
Overall, the Citizen reported a gain for unit values of the Umoja Fund from TZS 154.6931 to TZS 154.9309 in a one week timeframe, thus enabling pioneer investors to benefit from an increase in returns from TZS 84.6931 to TZS 84.9309.
In addition, the selling unit price for the fund increased dramatically from TZS 154.6931 to TZS 154.9309 while the repurchasing unit price also experienced an increase from TZS 153.1462 to TZS 153.3816 at the same time.
During this same time, the net asset value for the fund also grew from TZS 63.288 billion to TZS 63.347 billion and the number of outstanding units was reduced from TZS 409.119 million to TZS 408.873 million.
In the end, the full individual unit value was TZS 100 and pioneer investors were able to purchase these individual units at TZS 70 each, with a minimum purchase of 50 units and with the government subsidizing the remaining TZS 30 for each unit purchased.