Full Company Profile
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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 Uganda 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”.