INVESTING EXCEPTIONALLY STARTS TODAY

DO GREAT THINGS EVERY DAY ABOUT US The UAP Old Mutual Group is an integrated financial services provider comprising Faulu Microfinance Bank, UAP and Old Mutual. The Group came into being in 2015 following the attainment of a majority shareholding in Faulu Microfinance Bank in 2014 and UAP in 2015 by Old Mutual. Together we offer financial solutions for insurance, investment, savings and banking. UAP Financial Services is a member of the Old Mutual Group with interests in Insurance, Investment Management, Property Development, Securities Brokerage and related financial services. In East Africa, the old mutual group operates as UAP- Old Mutual Group. The Old Mutual Group heritage started over 170 years ago in South Africa. UAP Financial Services has licenses from both the CMA and URBRA to conduct the businesses of Unit Trust Manager, Investment Advisory, Fund Management and Stock Brokerage. We have a seat at the Securities Exchange. OUR PRODUCTS 1. Cash Management Solution 2. Private Wealth Management 3. UAP Unit Trust Funds 4. Stock Brokerage 5. Advisory Together, we each bring to the table our heritage and values and look forward to centuries of enabling dreams in East Africa. OUR EAST AFRICA STRATEGY Build an Integrated Financial Services Champion in East Africa by leveraging the strength of our capabilities in the Global group OUR EAST AFRICA VISION Enabling every East African to Realise Their Dreams.

2 TALK TO US ABOUT INVESTMENT SOLUTIONS

DO GREAT THINGS EVERY DAY 3 OUR CASH MANAGEMENT SOLUTION HAS GOT YOU COVERED CASH MANAGEMENT is a tailor made solution designed to suit the short term cash Investments for the client. One can hold their assets in cash pending upcoming obligations or as they wait on assets to be purchased, or even as reserves for long term capital investments. We thus seek to invest this cash on your behalf with the main objective of attaining for you the best possible yield over the short term. This investment product has competitive shortterm rates and focuses on principal stability and liquidity. It is a matching instrument for short-term liabilities such as advance months payrolls and working capital • It is a temporary “cash park” before actual investment allocations are made • It has a short-term investment horizon and provides principal stability and high liquidity • It is a low risk profile product because of its underlying investments Tax implication: The interest income and capital growth on the investments will be fully taxable per current tax rules.

INVESTMENT ASSET CLASS SHORT TERM FIXED INCOME SECURITIES Performance Target Average Market Management Fees Nil Income Declaration At maturity Income Distribution At maturity Risk Rating Low Minimum Investment UGX 50,000,000 Currency USD, UGX

4 TRY OUR PRIVATE WEALTH SOLUTION

PRIVATE WEALTH SOLUTION is a comprehensive investment solution that provides personalized Portfolio Management Service for clients who would like to diversify their investment portfolios and maximize their overall returns.

This service offers active investment management which involves active trading of the underlying securities in response to evolving market dynamics, cash management, and professional portfolio construction.

All this is done in consultation with the client whose risk-return profile shapes the investment strategy.

• Cash flow management • Equities selection & portfolio constructionoffering sector diversification • Fixed Income Management • Hard Currency Investments

INVESTMENT ASSET CLASS MULTIPLE ASSESTS

PERFORMANCE TARGET Average Market Rates Management Fees Performance Based Risk Rating Client’s risk appetite Minimum Investment UGX100,000,000 Currency USD, UGX

5 THE TIME TO INVEST IN OUR UNIT TRUST IS NOW A unit trust is a collective investment scheme, which pools contributions from investors with a common investment objective. The pooled funds are then used to purchase a portfolio of financial securities. Depending on the objective of the unit trust, the type of securities to be bought can comprise of: equities (shares), bonds, cash, bank deposits etc. The unit trust portfolio is managed by a professional fund manager, while the assets are held by a bank acting as a custodian.

What asset classes does a fund manager invest in upon receipt • Local Stock Market - Listed shares of monies from investors? • Treasury Bonds • Local Stock Market - Listed shares • Commercial Papers • Treasury Bonds • Treasury Bills • Offshore Investments • Commercial Papers • Fixed Deposits • Treasury Bills • Infrastructure Bonds • Offshore Investments • Corporate Bonds • Fixed Deposits • International Equities etc. There are three types of Unit Trust under the UAP-OM Unit Trust Funds and these are;

• UAP Money Market Fund • UAP Umbrella Trust Fund • UAP Balance Fund

6 UAP MONEY MARKET FUND

The Manager attains the Fund’s Investment Objective principally by investing In Fixed Income Securities Investments that consist principally of fixed income securities with a maturity of less than 36 months.

Potential investments include: interest-bearing securities such as bank deposits, treasury bills and commercial paper, including money or cash funds, as well as other debt securities. Through such investment, the fund will seek to benefit from the most favorable rates of interest available in the market.

FEATURES OF THE MONEY MARKET FUND • Commercial Papers • Treasury Bills • Fixed Deposits • Bank Deposits

ABOUT THE FUND Fund Manager UAP Financial Services Ltd Launch Date August 2013 Risk Profile Low Charges Initial Fee – Zero Annual Management Fee 2% p.a Trustee/Custodian Standard Chartered Bank Auditors Ernst and Young Lumpsum Investments Minimum UGX 100,000

7 THE TIME IS NOW TO SECURE YOUR FUTURE WITH OUR UMBRELLA TRUST FUND The investment objective of the UAP Umbrella Trust Fund is capital preservation and generation of consistent income with low to medium investment risk.

The investment portfolio of the Fund is invested in accordance with the Investment Guidelines Prescribed by the Retirement Benefits Regulations.

The fund is suitable for small to medium sized pension who are seeking for personal pension plans, schemes as well as individuals who are seeking for personal pension plans.

The fund invests in interest bearing securities offered in the market such as treasury bills, treasury bonds, corporate bonds, fixed deposits with approved financial institutions and other fixed income securities available in the market.

The fund has a bias towards fixed income securities offering long term value.

ABOUT THE FUND

Fund Manager UAP Financial Services Ltd Launch Date August 2013 Risk Profile Low Charges Initial Fee – Zero Annual Management Fee 2% p.a Trustee/Custodian Standard Chartered Bank Auditors Ernst and Young Lumpsum Investments Minimum UGX 100,000

8 TALK TO US ABOUT OUR UAP UMBRELLA TRUST FUND

DO GREAT THINGS EVERY DAY 9 OUR BALANCED FUND CAN HELP WITH YOUR LONGTERM CAPITAL GROWTH The investment objective of the UAP Balanced Fund is to achieve a reasonable level of current income and offer investor long term capital growth. The fund will have a balanced portofolio investing in a diversified spread of equities and fixed income securities. The Recommended investment term: medium to long-term (3-5years).

What is our Investment Strategy? The fund invests in both listed and unlisted shares, preference shares, bills, bonds, cash and participatory interest of other Collective Investment Schemes. The fund has a bias towards fixed income securities to help lessen the vitality. The portfolio may have a maximum of 10% direct and/ or indirect exposure to offshore investment as a hedge against inflation.

ABOUT THE FUND

Fund Manager UAP Financial Services Ltd Launch Date August 2013 Risk Profile Low Annual Management Fee 0% p.a Trustee/Custodian Standard Chartered Bank Auditors Ernst and Young Lumpsum Investments Minimum UGX 100,000

10 FREQUENTLY ASKED QUESTIONS ABOUT THE UAP UNIT TRUST FUNDS What are the benefits of investing in the UAP Unit trusts? Unit trusts have become increasingly popular because they provide cost effective access to both the fixed income market and the stock market. An investor is able to diversify risk and tap into some investments that he/she would rather have been unable to access through the expertise of a professional fund manager. How does an investor purchase Units? An investor can purchase units through an investment advisor from UAP Old Mutual Financial Services Limited, upon receipt of proper advice. What is the current minimum investment amount? The minimum lump sum investment amount is UGX 100,000 in each of the respective funds. An investor can also choose to make regular top ups as and when they feel the need to.

How does the fund manager determine how many units to allocate to an investor? When you invest in a Unit Trust fund, the number of units you will receive is calculated by dividing the investment amount by the offer price at the time of purchase. For example, when you purchase at a price of UGX 1000 and you invest UGX 3,000,000 you will receive 3,000 units.This number of units will be shown in your monthly statement. The value of these units will then change in accordance with the price of the unit trust. The price of the unit trust is dependent on the value of the securities (sometimes called underlying assets) that are bought for the unit trust fund by the fund manager.

11 What should I know before investing in a unit trust fund? To align your interest and expectations with the objectives of the unit trust fund, you need to consider certain factors before taking the decision to invest. You need to determine what your investment objective is, your risk appetite, your investment horizon and possibly whether you will need the money in the short or long term. It is important to bear in mind that the value of the unit trust will fluctuate in accordance with the underlying investments and any income may go down as well as up.

When is the best time to invest in a unit trust fund? Customarily, it is a good idea to invest regularly to take advantage of “cost averaging”. Capital market products such as shares and unit trusts fluctuate in price, sometimes strongly. History shows that it is very difficult for any investor to predict market conditions i.e. to buy units at the lowest price and sell them at the highest price. Therefore, you are more successful if you invest regularly over a long period of time.

What is the role of the different service providers involved in the Unit trust management? 1. The Trustee - will monitor all involved parties and check whether all transactions done by the fund manager and the custodian are in accordance to the law. 2. The custodian - will safeguard the assets and the securities of the unit trust in a separate account. 3. The fund manager - will invest the portfolio across various asset classes and will use its market knowledge and expertise to give superior rate of return. 4. The auditor - will check and audit the unit trust operations on a regular basis to further enhance your security.

12 How quickly can I access my money when i need it? UAP Financial Services unit trust funds provide you with easy access to your money. Normally, your money should reach your account within 2-3 working days upon receipt of the redemption request. You can redeem all or part of your investment at any time. However, we recommend that investments in any fund except the money market fund should be viewed as medium to longer term (3 – 5 years), as the nature of the main investment assets within the funds follows a longer-term market cycle. Are there any hidden tax obligations on Unit trust funds? Unit trusts are a tax-efficient investment. A unit trust fund does not pay tax on its income, either from dividends or interest. In addition, unit trusts do not pay tax on capital gains. What rate of return do Unit trusts Offer? The rate of return rendered by a unit trust fund depends on the following factors: Returns from the financial markets, the type of assets within the unit trust portfolio and management skills of the fund manager. The value of shares, treasury bonds, corporate bonds and other asset classes are determined by financial markets and can rise or fall over time. Historical performance does not predetermine future performance. Are there any underlying risks in investing in UAP Financial Services Unit trust funds? Generally, the level of investment return is related to the level of risk incurred by any investment, i.e. the higher the potential risk, the greater the potential return. In the case of UAP FS’ Unit trust funds, 1. Equity & Balanced funds - they provide the highest potential return, but are also associated with the highest volatility. 2. Bond or fixed income instruments - Less risky, but also with lower potential returns. 3. The most secure unit trust funds are generally the money market funds as they invest in short-term securities.

13 How can I monitor returns in any given unit trust fund of my choice? For transparency purposes, UAP Financial Services will send monthly reports to your email. The market value of your investment depends on the current price of the unit at a particular period of time. The number of units you have needs to be multiplied with the current price which then gives you the market value of your investment. In what Capacity can one join the UAP Unit Trust? 1. Individual 6. NGO 2. Joint Account 7. Religious Body 3. Investment Club 8. Trust Fund 4. Sacco 9. Others.... 5. Company

14 THE TIME IS NOW TO START LIVING EXCEPTIONALLY

What are the Requirements for joining? Individuals/Joint Accounts 1. Copy of identification document(preferrably National ID) 2. One colour Passport-Sized photo 3. Copy of recent STAMPED bank statement-last 3 months or cancelled cheque 4. Proof of residence(Copy of utility bill or LC letter or Residence verification letter) 5. Investment cheque(Original bank deposit slip in the name of the selected fund) Corporate/Investment Clubs/Saccos/NGO’s/ Religious Bodies and Others.. 1. Copy of Certificate of Incorporation 2. Copies of signatories identification documents 3. One colour passport-sized photo of each of the signatories 4. Copy of recent bank statement not more than 3 months or cancelled cheque 5. Resolution to carry out the investment on company letterhead 6. Investment cheque(Original bank deposit slip in the name of the selected fund)

15 TRY OUR BROKERAGE SERVICES

What is Brokerage / Securities Trading? Buying and selling of quoted securities(shares, treasury bills and bonds) on the Uganda securities Exchange and other regional exchanges • Immobilization of securities in the SCD • Nominee Account Services for Individual investors and corporate • Investment research and analysis for clients • Securities trading advisory What is Securities Central Depository (SCD)? SCD - is an electronic account set-up in the investor’s name on to which their securities are deposited and any transactions (trades, transfers etc) are effected. Opening an SCD UAP Financial services account is free of charge. What are the Benefits of SCD? • Reduces paper work • Building of In investors’ • Easy and Speed of confidence in the market transfers / trading • Minimal bad / wrong Shares delivery • Reduced risk of loss, theft and mutilation of certificates

16 THE TIME IS NOW TO PLAN AND GROW WHAT YOU VALUE

About Uganda Securities Exchange, USE Uganda Securities Exchange has 17 locally and cross listed companies. Locally listed companies sell their shares only in Uganda where as cross listed companies sell their shares both in Uganda and . USE Locally listed companies include; Stanbic Uganda Holdings Ltd, , Uganda Clays Ltd, DFCU, National Insurance Corporation Holdings Ltd, CIPLA Quality chemicals Ltd, Ltd, Bank of Baroda Uganda, BATU. Cross listed companies include; Centum Investments Ltd, East African Breweries Ltd, Equity Bank Ltd, Jubilee Holdings Ltd, Kenya Airways, Kenya Commercial Bank, Uchumi Supermarkets Ltd.

How to become a shareholder? • Open an SCD account with us (UAP Old Mutual Financial Services Ltd). • Deposit funds on our client trust bank account details below; A/C Name: UAP Old Mutual Financial Services Ltd A/C No.: 9030005716976 Bank Name: Stanbic Bank Branch Name: Corporate • Once the payment is done, kindly share with us a proof of transfer of funds and we shall advise on the best investment options at the time. Kindly note that there is a 2.1% brokerage commission on every transaction. N.B: This brokerage commission is flat for all brokers. This is set by both USE & CMA.

17 Requirements for SCD account opening Individuals • Three colored passport-sized photos • Copy of valid identification document(National ID/ passport). • Copy of a stamped recent bank statement(not more than 3 months) Corporates • Copy of certificate of incorporation * Memorandum and articles of Association * TIN certificate * Board resolution to open SCD account • 3 colored passport-sized photos of each signatory • Copies of signatories’ valid IDs (National ID/ passport)

What is Financial Advisory? This Involves • Transaction advise on initial public • Offers(IPOs)Equity Issues, underwriting and private placements. • Commercial Paper and Corporate Bonds advisory • Structured Loans, Commodity Linked Financing and Project finance • Infrastructure Bonds and Sovereign Bonds • Mergers and Acquisitions • Business restructuring, valuation, balance sheet advisory

18 Why should you invest through UAP Financial Services? PEOPLE 1. Highly qualified 2. Combined industry experience of over 200years 3. Diversified background 4. Tested team cohesion PRODUCT 1. Diversified products 2. Wide customer base 3. Over UGX 5Trillion in AUM 4. Responds to client needs 5. One of the biggest UTF Manager in Uganda and Kenya 6. Committed to markets we operate in. PROCESSES, STYLE AND SYSTEM 1. Excellent Client service 2. Tested investment philosophy 3. Disciplined investment process. 4. Robust IT capability 5. Good governance 6. Ethical conduct of business 7. Huge distribution network PERFORMANCE 1. Risk adjusted returns 2. Benchmark beating returns

19 WE WOULD LIKE TO HEAR FROM YOU

Plot 3-5 New Port bell Road, 2nd floor 1st tower, UAP business park, P.O.Box 20079 Nakawa (U) Tel: +256 - 414 - 332844, +256 - 754 - 443788 Email: [email protected] Web: www.uapoldmutual.com

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