Fundisa investors get R4.8m bonus

Johannesburg - The Fundisa unit trust fund, an initiative aimed at encouraging low-income South Africans to save for their children's higher education, will be distributing a total annual bonus payment of R4.8m to investors this month.

At the end of 2010 investors shared in a bonus payment of R2.8m, and at the end of 2009 the bonus was R1.2m.

Peter Dempsey, deputy CEO of the Association for Savings and Investment South Africa, said the Fundisa Fund had grown in popularity since its launch at the end of 2007. This year just over 12 000 investors qualified for a bonus payment. These investors were saving for the education of 18 357 beneficiaries.

In addition to the annual bonus payment, each investor also benefited from the 6.65% average return achieved by the Fundisa Fund for the 12 months to the end of November this year.

Dempsey said together with the bonus allocation, this translated to a total return of 31.65% for the year on the first R2 400 invested. While investors could invest more than R2 400 a year, this was the maximum amount that qualified for the bonus payment, provided no withdrawals were made during the year.

At the end of November this year, assets under management in the Fundisa Fund stood at R56.4m, an increase of 210% over the R18.2m at the end of November last year.

The Fundisa Fund is a low-risk fixed interest income unit trust fund of funds administered by Stanlib. The underlying portfolios, which in turn invest in bonds, fixed deposits and other interest-earning securities, are managed by selected asset managers.

The fund is open to investors wanting to save for the higher education of a South African citizen or permanent resident. A minimum investment of R40 is required. The investor can then choose to pay R40 or more every month or top up the investment when money becomes available.