M&G reporter
Women and children are being touted as the latest beneficiaries of the ethical investing market with the launch this week of African Harvest’s Women’s Initiative Fund (WIF).
Sixty percent of the 5% upfront fees paid by investors and 30% of the annual 1,5% management fee will be distributed to community organisations. In addition, investors can chose between reinvesting income earned from the investment back into the fund or donating the income to a community organisation of their choice.
Fund co-ordinator Tamsin Beerstecher says about R11-million was invested in the new fund even before it launched. Most of the individual investors were women, and many chose to donate their distributions rather than reinvest them.
African Harvest hopes the WIF will have R100-million within a year. If it reaches this target, about R7,5-million will be disbursed. This assumes that investors will choose to donate their distributions, which should typically be about 2% to 4% of their investment.
The WIF is a traditional risk, managed flexible fund, able to invest in cash, bonds, equity and property or any other listed instrument. The minimum lump sum investment is R1 000, and the minimum monthly is R100.
Primary initial recipients are Rape Crisis, Childline and the community support arm of the National Institute of Crime Prevention and Reintegration of Offenders.
No one institution can receive more than 50% of its funding via the WIF in one year. If this limit is reached the money will be diverted to the second-tier organisations.
No second-tier organisations have been approved yet, but proposed recipients include the Children’s Rights Centre and the KwaZulu-Natal Rural Women’s Development Centre. Payments are made quarterly.
African Harvest is a joint venture between the National Empowerment Corporation, labour unions and Coronation Holdings. It currently offers six unit trusts of which two, the WIF and the Renaissance Balanced Fund, have an empowerment basis.
The WIF can be contacted at www. africanharvest.co.za or call the toll free number 0800 004 952