Fidelity equities fund outpaces inflation, ZSE

Source: Fidelity equities fund outpaces inflation, ZSE | The Herald

Fidelity equities fund outpaces inflation, ZSE

Tapiwanashe Mangwiro Senior Business Reporter

The Fidelity Growth Fund outpaced both inflation and Zimbabwe Stock Exchange (ZSE) All Share Index performance to record the best return on investment of 60,92 percent between January and February.

The equities fund registered strong performance last year, after gaining 494,16 percent, the highest of any managed fund in the general equities funds category.

According to the Securities and Exchange Commission of Zimbabwe’s GroWealth February report, the Fidelity Growth Fund saw returns of 30,25 percent in the first month of the year and jumped a further 30,67 percent in February. The fund has made a strong start to the year despite gaining just 16,99 percent in December. Investors in the Fidelity fund have had a good start to the year as their 60,92 percent return was above the 38,51 percent gain recorded by the ZSE All Share Index in the same period.

The fund also outperformed the Top 10 index, which closed February with gains of 46,13 percent and inflation, which increased by 12,71 percent for the two months.

Returns on the Fidelity Growth Fund have been highly competitive over the years, with the profits having compared favourably to inflation and other benchmarks.

Robert Mugonera, the Fidelity fund manager said, “These investments are easily accessible to the average citizen with a minimum investment of $10 000. Our funds are highly liquid and disinvestments are processed within 3 working days.

“We maintain a rigorous top-down approach that takes into account the broader economic context and applies it to specific assets. We use a systematic combination of valuation models and relative pricing multiples to determine fair value estimates of assets.”

On what distinguishes their funds from others in the market, Mr Mugonera said their investment securities had been in existence since 2001, surviving the turbulence that befell the local economy in the last two decades.