TIP One, the first of its kind, is a portfolio of investments into BEE Schemes that are invested into listed companies at a BEE discount.
The portfolio is held via TIP One, a listed tradeable share that is a permanent majority black owned and controlled firm, that also allows for mandated and other investors to invest up to pre-set shareholding limits.
The investments into the BEE schemes are typically implemented via swaps (buying into the scheme and paying the vendor with TIP One shares).
TIP One solves the three key challenges that investors in BEE scheme typically face:
Long term lock ins (very low or no liquidity)
No diversification (only one underlying asset in the scheme)