A Collective Investment Scheme (CIS) is an investment fund used for collective investment by investors. Their money is invested on a pooled basis by an investment manager (Asset managers) for a fee. Section 3 of the Collective Investment Schemes Act [Chapter 24:19] defines a CIS as an arrangement with respect to property of any description, the purpose or effect of which is to enable participants to participate in or receive profits or income arising from the acquisition, holding, management or disposal of the property.
Each collective Investment Scheme (internal schemes) must be registered by the Securities and Exchange Commission of Zimbabwe (SECZ), and their operation is governed by the Collective Investment Schemes Act [Chapter 24:19]. The Commission has been working on the development of a wide range of investment products and a statutory instrument to that effect was gazetted on November 15, 2019.
The Collective Investment Schemes (Internal Schemes) (Amendment) Regulations, Statutory Instrument 240 of 2019, introduces new investment products which are pending operationalisation through the publication of a statutory instrument which declares them as classes of securities in terms of the Securities and Exchange Act [Chapter 24:25]. The new products are:
Commodity Fund: an internal scheme constituted for the purpose of investing in or holding commodities;
Exchange Traded Fund: an open-ended internal scheme that seeks to replicate the performance of the target and is operated and structured in a similar way;
Private Equity Fund: a fund constituted for the purpose of investing or holding shares that are not listed on a securities exchange:
Property Fund: an internal scheme constituted for the sole purpose of holding or investing in real estate;
Real Estate Investment Trust Scheme: an internal scheme that owns, manages or invests in real estate;
Venture Capital Fund: a fund that invests in start-up and emerging businesses.
Innscor, Royal Harare Golf Club, Wednesday December 4, 2019, 08:15am.
Credit: Source link