Commends African Alliance for the relaunch of the Ligcebesha Fund in order to create more value for local investors. FSRA General Manager Babhekile Matsebula said the new look Ligcebesha with its colorful features is designed to attract more investments to be placed locally in order to mobilize assets for domestic investments
needed by the country to fund economic development. “When encouraging local investments, the FSRA is not saying this must be done to the detriment of attractive returns for the owners of the assets but FSRA is saying first look at what is obtainable locally before looking at investment opportunities abroad”, she said. She stated that it is in the spirit of promoting availability of attractive investment instruments that AA has relaunched Ligcebesha.
FSRA encourages other asset managers to explore possibilities of introducing new investment instruments with attractive or competitive returns. The FSRA in implementing a provision of the Securities Act enforces 50% domestic
investment requirements across capital markets. “It should be mentioned here and now that the absorptive capacity of the local economy is far from saturation such that more domestic investments are desirable”, she added.
In order to promote local investments, FSRA challenges corporates and government to come up with bankable projects to attract domestic investments.
About the Ligcebesha Fund
1. Inception date – 01 September
2. Fund Domicile – Swaziland
3. Primary objective – to seek longterm
growth of capital and income by
investing primarily in the listed securities
of issuers in Swaziland.
4. The portfolio comprises of shares,
stock, preference shares, debentures, debenture
stock, debenture bonds, securities
issued by any organ of government, unsecured notes and unsecured debenture stock, whether or not they have inherent option rights or are convertible, and derivatives other than derivatives originating from the Manager or the Trustee, as well as liquid assets, all to be acquired at fair market prices.
5. Asset Allocation:
• Domestic Money Market – 36.76%
• Domestic Equity – 44.67%
• Domestic Bonds – 18.57%