Rwanda National Investment Trust’s Iterambere Fund NAV grew 11.4% in 2022

Rwanda National Investment Trust's Iterambere Fund has seen a remarkable growth in its net asset value (NAV) by 11.4% in the calendar year ending December 31, 2022. Jonathan Gaterra, the CEO of Rwanda National Investment Trust, credits this growth to the vigorous marketing strategies employed throughout the year. In a recent interview with CNBC Africa's Julius Bizimungu, Gaterra shared insights into the performance of the fund and shed light on the key factors driving this impressive growth. The CEO highlighted the impact of COVID-19 on the fund, mentioning that individuals who accessed their funds during the pandemic returned with increased amounts, leading to a cascading effect on marketing efforts. Gaterra emphasized the significance of savings and how the perception of saving has shifted among individuals who now view it as indispensable. The fund predominantly invests in fixed income assets, particularly government bonds, with over 95% of the portfolio allocated to this asset class. Additionally, maintaining liquidity through banking instruments and diversifying the remaining 5% of the portfolio across various asset classes contributes to the fund's stability and growth. Gaterra also pointed out the fund's active participation in the secondary market and government securities, which have further supported the growth of the NAV. Since its launch in 2016, Rwanda National Investment Trust has demonstrated a compound growth rate of approximately 11.2%, reflecting steady progress and value creation for investors. Despite Rwanda's ambitious target of achieving a savings-to-GDP ratio of 20%, the country currently stands below 15%. However, Gaterra remains optimistic about the fund's role in incentivizing saving behavior and contributing to narrowing the gap towards the national target. The CEO highlighted the significant increase in unit holders, with over 5,000 new individual accounts added in the last year, indicating a positive trend towards enhancing savings culture among Rwandans. Despite the economic challenges posed by the COVID-19 pandemic, inflation, and global geopolitical uncertainties, Gaterra remains positive about the fund's performance. He acknowledged the temporary withdrawals made by investors during challenging times but underlined the subsequent return of funds and the positive impact on driving more investments into the fund. Looking ahead, Rwanda National Investment Trust aims to focus on expanding its marketing and sales outreach initiatives, targeting both individual and institutional investors. By leveraging the tax benefits associated with investing in collective business entities like theirs, the fund seeks to attract a wider pool of investors and further grow both its assets under management and investor base. Gaterra reiterated the fund's commitment to reaching more Rwandans and promoting a culture of saving and investment to foster financial prosperity in the region.