Fundisa fund launch attracting widespread interest

The launch of the Fundisa Fund has aroused widespread interest and the project to encourage parents to save for their children’s education is off to a good start, says Di Turpin chief executive of the Association of Collective Investments.

News media have been receiving emails and phone calls from investors wanting to invest in the fund.

“They can do so through Nedbank, Standard Bank and Stanlib. The South African Post Office and ABSA will also be part of the project shortly. The web site giving full details is now up.”

The project is a joint private sector – Government initiative by the Department of Education and the ACI and could have a considerable impact on education in the longer term.

“Investors were quick off the mark to start investing. The first Fundisa account was opened through a NedBank mobile sales unit in the Eastern Cape last Monday morning.”

Fundisa is being backed by some R34million – R20 million from government and R14million from Collective Investment companies such as Nedbank, ABSA, Stanlib, Coronation Fund Managers, Investec, Allan Gray, Old Mutual, Cadiz, PSG, Personal Trust, Foord and Rezco.

The fund - which is designed to be affordable - will have minimum contributions of R40 for debit orders and once off investments. Investors must have a Mzansi or similar account and be South African citizens.

Investors in the fund will receive a 25% bonus from the Department of Education and industry members which will be added to their capital and paid directly to a registered institution for a child’s school and college fees. The maximum annual bonus will be R600. To qualify for the bonus the investment has to be used to pay for post school education at either a college or university.

“This fund with widespread support from all communities can help to raise education standards, combating poverty and providing a better standard of living for South Africans,“ says Turpin.

The launch last week was the culmination of nearly 2 1/2 years work by dedicated teams of professionals from the Department of Education and the ACI.

“Preliminary work actually began in 2004 when the industry considered trying to find a meaningful way of meeting the Financial Sector Charter’s access requirements. The concept as it stands today was developed mid 2005 after international research had highlighted schemes with some similar features in other areas.”