ABC UNIT TRUST

Pioneers of Unit Trusts in Zambia.

Asset
Management

Effective 31st December 2019

 What is a Unit trust?

ABOUT US
These units belong to you until you decide to sell them. Your money is combined with that of
other investors who have bought units in that unit trust. Experienced investment managers
use the pool of money to buy securities such as money markets, fixed income instruments,
cash, property, shares or a combination of these on the local or foreign markets, depending on
Pioneers of Unit Trusts in Zambia. the type of unit trust. How much your investment grows depends on the performance of these
assets. You can buy more units whenever you want to and you can leave the value of your
units to grow.
ABC Unit Trust is a Collective Investment Scheme (CIS),
managed by African Banking Corporation Investments Services
Limited T/A ABC Asset Management and wholly owned
by Atlas Mara Zambia, which currently manages assets in
excess of K130m. Our investment approach taps into strong
fundamentals of asset and investment choices. We are a team
Why Invest in Unit Trusts?
of Investment Professionals offering investment services that You can invest in unit trusts for most of your financial goals, from saving
cut across a wide range of investment classes. longer term needs to meeting shorter-term objectives.

01 Easily Accessible,
You only need
K500 a month
To benefit from our investment expertise,
Flexible and
Transparent 03
You can access your money as outlined per
your chosen unit trust and are allowed to
you need a minimum of just K500 to start
make changes to your investment portfolio
your investment journey and set up a regular
whenever you need to without incurring any
standing order per month. You can also start
transaction fees. Investors are allowed to
with an initial lump sum of K20,000 or more
switch their investment portfolios across

OUR PROMISE and add to your investment at any time with a

minimum additional amount of K500.
different unit trusts in line with their
investment goals. Investment statements

02
are provided on a quarterly basis to allow
To be a fund manager of choice for all our investors. investors to track the performance of their
investments.

Our philosophy is anchored on wealth management through

value investing and capital preservation. We believe our clients Competitive Yields

04
work hard for their money, and that is why we ensure we
reward them. A unit trust is a type of investment that provides on Investments Unit trusts come
you with easy and affordable access to financial markets. When The unit trust have competitive yields with safeguards
you invest, you buy units in unit trusts of your choice. that have been built over time in line with
consistent investment strategies being
Each unit trust is compelled by law to
pursued by the Investment managers.
appoint a trustee who holds the assets for
Our philosophy is anchored on wealth
the beneficial interests of the unit holders..
management through value investing and
The trustee is usually a bank or financial
capital preservation. We believe our clients
institution that is not affiliated with the unit
work hard for their money, and that is why we
trust company or the investment manager.
ensure we reward them every day.
This means that if anything happens to
the unit trust company or the investment
manager, your investment will not be affected.
This means that if anything happens to the
investment manager, your investment will not
be affected.
1 ABC UNIT TRUST 2
How Unit Trust make
money for you.
Unit trusts make money for you in three ways:

Income
The underlying investments may earn
interest, dividend or rental income.
Depending on the type of unit trust, the
interest and dividends earned by units
may be paid out to investors or may be
reinvested, increasing the value earned
by investors.
Choose a unit
trust that suits
Capital Growth your needs
The value (price) of the shares or
underlying investments may increase
and may be sold for more than the price There is a trade off between higher
at which they were bought. Unit trusts potential return and fluctuation
can however, lose money if the prices on the one hand, and stability and
of the underlying investments fall. It is lower risk on the other.
therefore best not to invest in unit trusts
using money that you may need at short
notice. This is because if you have no • When you choose a unit trust,
choice but to sell your investment when there is a trade off between
you need the money, you run the risk of higher potential return and
making a loss if the market, and therefore fluctuation on the one hand,
your investment is down. and stability and lower risk
on the other. Most investors’
needs are met by our seven
Reduced Cost of main unit trust;

Investment • Money Market Fund

Unit trusts are cost effective and • Balanced Fund

optimize investment options available to • USD Dollar Fund
individual. They thus reduce excessive • Equity Fund
amount of costs charged for investment • Gratuity Fund
advisory to individual investors. • High Yield Fund ZMW
Additionally, transactions conducted
• High Yield Fund ZMW USD.
are free of any transaction fees and no
regular maintenance fees are charged to
the account.
• If you want to earn returns
from real estates market in
Zambian market, you will
soon be able to invest in our
Property Fund that will include
A-grade rated commercial
properties and provide
high return on real estates
investments.

3 ABC UNIT TRUST 4

 4. GRATUITY FUND

ABC UNIT TRUST What should you use this Unit Trust for?
For Corporate organizations seeking to managing their
employee gratuities and avoid the stress of cash flow
management when gratuity obligations fall due.
A wide range of Unit Trusts Invests in regulated Zambian market shorter and longer
What does this unit trust invest in? dated fixed income and money market instruments and has
a maximum weighted duration of 180 days.

1. MONEY MARKET FUND Minimum recommended Investment Period None

Our flagship unit trust and most stable unit trust, offering
Management Fees 2.88% per annum
preservation and accessibility over the very short term.
What should you use this Unit Trust for?
Aims to generate a sound level of income and achieve Suitable for Corporate/Retail Corporates Only
higher returns than a bank deposit.

Invests in regulated Zambian money market instruments 5. EQUITY FUND

What does this unit trust invest in?
issued by government, corporates and banks.
Provide investors with competitive and sustainable risk
None. It is suited for short term investing i.e. a year or less What should you use this Unit Trust for? adjusted returns over the medium to long term by investing
Minimum recommended Investment Period
as return is unlikely to keep up with inflation. in Lusaka Securities Exchange (LuSE) listed equities.

Management Fees 4.5% per annum Our investment mandate is such that we invest 70% in
What does this unit trust invest in? Equity and 30% in money markets. Exposure to shares will
Suitable for Corporate/Retail Yes not exceed 75% of the fund at any point in time.

5 years. Ideal for investors seeking exposure to the LuSE by

2. BALANCED FUND (FIXED INCOME FUND) Minimum recommended Investment Period
drawing on a balanced stock portfolio.
This Unit Trust Offers steady long term investment
Management Fees 4.14% per annum
What should you use this Unit Trust for? returns. It balances Capital growth, income generation and
investment risks.
Suitable for Corporate/Retail Yes
Invests in regulated Zambian Fixed Income instruments
What does this unit trust invest in? issued by government, Corporates as well as Commercial 6. ZMW HIGH YIELD FUND
Banks.
To mirror the 365 day T-bill or the long term bond yield
1-3 years. To maximize the benefit of investing you need What should you use this Unit Trust for? curve by locking in funds in long term buckets whilst
Minimum recommended Investment Period to stay invested over the long term, through periods of limiting redemptions to only once every after 12 months.
fluctuation. It is good for growth investments.
It invests in Treasury Bills, Government Bonds and longer
What does this unit trust invest in?
Management Fees 2.53% per annum tenor regulated money market securities.

1 year. Suited for high value clients seeking to optimize

Suitable for Corporate/Retail Yes Minimum recommended Investment Period
returns.

3. US DOLLAR FUND Management Fees 2.1% per annum

This unit trust offers preservation of US Dollar Suitable for Corporate/Retail Yes
denominated capital and accessibility over the very short
What should you use this Unit Trust for?
term by generating sound level of income higher than 7. USD HIGH YIELD FUND
returns in a US Dollar bank account.
What should you use this Unit Trust for? To mirror the 364 Libor Rate + 250 basis points
Invests in regulated Zambian money market US Dollar
What does this unit trust invest in? denominated securities issued by Financial and other Invests in regulated Zambian US Dollar denominated
What does this unit trust invest in?
Corporate Institutions. money market securities.

None. It is suited for short term investing i.e. a year or less 1 year. Suited for high value US Dollar clients seeking to
Minimum recommended Investment Period Minimum recommended Investment Period
as returns remain above Libor. optimize returns.

Management Fees 1.15% per annum Management Fees 1.15% per annum

Suitable for Corporate/Retail Yes Suitable for Corporate/Retail Yes

5 ABC UNIT TRUST 6

 4. Can I change my mind about my
unit trust choice later?
Frequently Asked It’s best to make sure you are comfortable
with your choice up front so that you
Questions can get the most out of the unit trust
you have chosen and not make changes
1. Do I have to commit to a fixed unnecessarily. However, you can change to
Ready to invest?

?
a different unit trust, at no cost, whenever
monthly premium for a set you feel your circumstances or needs Call to speak with any of our investment
term, and what happens if I stop have changed. This transaction is called a advisors:
investing? “switch”.

• Direct Line: +260 211 253 745

When you invest in our unit trusts, there 5. How often should I review my
• Switchboard: +260 257 970 ext222
are no “premiums”, and there is no investment? • Email: investmentszm@[Link]
commitment to a set investment period.
It’s your investment –you decide how It’s best to make sure you are comfortable • Website: [Link]
much, when and how you want to invest. with your choice up front so that you
You can add lump sums to your investment can get the most out of the unit trust The following will be required to open a unit
at any time. You can set up a debit order you have chosen and not make changes trust account:
Fees Charged (minimum of K500) at any time, which you
can change, pause or cancel as your needs
unnecessarily. However, you can change to
a different unit trust, at no cost, whenever
change. You can do these transactions, • (2) recent passport size
you feel your circumstances or needs
How much does it cost to invest? at no cost, conveniently online, or you photographs
have changed. This transaction is called a
There are three categories of charges that can complete and submit a form. It’s your • Valid National Registration Card
“switch”.
are charged as a proportion of the Net Asset choice when and how much to invest, and (NRC), passport or driver’s license.
Value. there are no consequences if you choose • Proof of residence not older than 3
not to invest more. You own the units
6. How often should I review my months/Tenancy Agreement and /or
you have bought and your investment investment? copy of utility bill (water/electricity/
Administration Fees continues to earn return until you decide to rates)
Average of 0.865% p.a. of NAV sell your units. It’s a good idea to review your investment • Reference letter from existing
once a year, but if you are comfortable customer, employer and/or
• This may include all other costs such as that you made the right choice up front, commissioner of Oaths.
2. How do I know how my you only really need to consider changing
Audit, Annual General Meetings as well
as issuance of investor notices in the investment is doing? your unit trust when your circumstances
media. (specifically the time period before you
We will send you periodic statements as need to access your money) change.
agreed with yourself showing how many
Regulatory Fees Total of 0.125% p.a. units you have in your account, and what
the kwacha value is.
7. Can I open a Unit Trust in favour
of NAV of my Child?
• The Fund is mandated to pay regulatory 3. How do I know which unit trust Yes you can. However, the unit trust will be
fees to the Securities Exchange. is right for me? held in trust to the parent/guardian until
• Total cost paid to SEC is 0.125% charged the child has attained the legal age to own
per annum on the net asset value. Your decision should depend on how much his/her own unit trust account. The parent/
• Annual issuer fees of K20,000 p.a return you want to earn and whether you guardian will be the legal owner of all
are comfortable with ups and downs or transactions on the child’s unit trust.
prefer stability. Thinking about how long
Management Fees you have to invest for, and how quickly
you might need to access your money can
8. Do I have voting rights at the
Management fees will vary across different help you weigh the return you want against Annual General Meetings?
funds but will not exceed 5% pa the stability you need. If you are not
comfortable making your own investment Yes you have. You are required by law
• These are annual fees charged to decisions, you may wish to speak to a to attend the proceedings of all Annual
each unit trust as set out in the offer good, independent financial adviser. General Meetings as well as Extraordinary
documents for each respective unit General Meetings. If unable to attend you
trusts while trustee fees are 0.15% p.a can appoint a proxy to represent you.
• Fees are based on the Net Asset Value
of the Funds under management and
computed daily.
• No Advice fees are charged.

7 ABC UNIT TRUST 8

About Collective With the approval of the Trustee and the
Commission, ABC Asset Management may in
from taxes on revenue earned from Dividend
Income and Interest earned on savings and
returns from the fund could be affected by
changes in the tax treatment or interpretation

Investment Schemes exceptional circumstances suspend the issue,

cancellation, sale and redemption of units in
deposit accounts. However, the Fund is not
exempted from interest earned on Corporate
of the fund and or changes in law relating to
the taxation of the property transactions.
the fund. The investor understands that the Bonds, Government Bonds and Treasury Bills.
CIS are generally medium to long term legal and tax environment is continually The Fund is also not exempt from VAT. (Issue date: 31st December 2019)
investments. The value of participatory changing, and that ABC Asset Management However, investors need to note that the
interests may go down as well as up cannot be held responsible for any changes
and past performance is not necessarily to the law which might have an effect on their
a guide to future performance. investment, and which did not exist at the
Fluctuations or movements in exchange time their investment was made. Additional
information on the fund including, but not
rates may cause the value of underlying
limited to, brochures, application forms, annual
international investments in a fund to and half-yearly reports are available free of
move up or down. Income from the fund charge from the ABC Asset Management
is reflected daily through increased office at Atlas Mara House, Ground Floor,
unit prices. Prices are calculated on a Corner of Church/Nasser Roads or upon
net asset value (NAV) basis which is request via investmentszm@[Link].
the total value of all assets in a fund
The investor further acknowledges that they
including any income accrual and less
are aware that ABC Unit Trusts are not bank
permissible deductions from the fund. deposit accounts, a constant unit price of K1
Unit prices are available daily and can (one kwacha) will be maintained although,
be obtained by sending an email via owing to circumstances, it may be amended to
investmentszm@[Link]. a lower amount, the total return to the investor
is made of interest received and any gain or
Fees and charges associated with running loss made on any particular instrument, in
the funds, are available as disclosed in most cases there turn will merely have the
the marketing brochures. CIS are financial effect of increasing or decreasing the daily
products and not investments in insurance yield but in cases of abnormal losses it can
policies with an insurer and therefore have the effect of reducing the capital value,
cooling off periods do not apply. ABC Asset the yield is calculated using an annualized
Management does not provide any guarantee seven day rolling average and excessive
either with respect to the capital or there turn withdrawals may place liquidity pressures
of a fund. and in such circumstances a process of
ring fencing of withdrawal instructions and
The directors and personnel of ABC Asset managed pay-outs over time may be followed.
Management may also have investments in The investment return is not guaranteed
any of the Unit Trusts. ABC Asset Management and is dependent on the performance of the
utilizes Atlas Mara Zambia’s core banking, underlying investments.
electronic and telephone banking platform.
All requests for transactions received on or ABC Unit Trust will not have more than 25%
before 16:00 hours everyday will traded at in any one single entity. African Banking
ruling prices and valued after 16:00 hours on Corporation Investments Services Limited
that day. Investments in funds with foreign T/A ABC Asset Management is a registered
securities may involve various material Dealer and Collective Investment Scheme
risks, which include potential constraints Manager and a full member of the Capital
on liquidity and there repatriation of funds, Markets Association of Zambia. This document
macroeconomic, political, foreign exchange, is part of the Minimum Disclosure in terms of
tax and settlement risks and potential the Advertising, Marketing and Information
limitations on the availability of market Disclosure requirements for Collective
information and there may be tax to be Investment Schemes as requested by the
levied on certain of the benefits accruing to Securities Act of Zambia.
the investor from the funds and ABC Asset
Management may be required to deduct and Taxation: The Fund is exempt from Income Tax
pay over to the authorities any such tax from under the Second Schedule of the Income
such benefits before paying any balance to or Tax Act. It is entitled to Withholding Tax
for the benefit of the investor. Exemption upon application to ZRA, the
Withholding Tax Certificate exempts the Fund

9 ABC UNIT TRUST 10

 Asset
Management

Direct Line: +260 211 253 745

Switchboard: +260 257 970 ext222
Email: investmentszm@[Link]
Website: [Link]