Unit trusts are pooled investment fund where thousands of investors put their investment funds into the hands of a licensed funds manager allowing each one of the investors to benefit from greater security and better economies of scale than if they had invested directly in the stock market or other investment opportunities.
Buying and selling units
Buying and selling units in a Unit trust is similar to buying and selling shares listed on the stock exchange. When you buy units, you become an investor in the unit trust and become entitled to rights attaching to the units. These rights are provided and protected in the Trust Deed which the Trustee has a duty to enforce under the Capital Market Act and Regulations.The Trustee and custodian of the fund is CFC Stanbic Bank.
All unit holders are entitled to enjoy the return realized by the unit trust in proportion to the size of your investment. The unit holder is also entitled to sell off part or all of your investment at any working day except on specified days when books are closed for income distribution or other causes.
Units are bought and sold through the Fund Manager who is expected to provide a ready market for this process. When you invest, the Fund Manager creates units corresponding with your investment. For example, if you invest 10,000 and the value of the unit is KSHS 100.00, the Fund Manager will create 100 units and register them in your name. The Fund Manager keeps a register of all unit holders at any given time. The register will show a number of details, including the number of units held.
When you sell your units, the Fund Manager cancels the units sold from the register.
Standard Investment Trust Funds
As part of our growing product range we have now launched the Standard Investment Trust Funds, which allow our clients to invest in any one or all of the following unit funds:
Equity Growth Fund The main investment focus is shares listed on the stock exchange with the aim to achieve reasonable growth and returns over the medium to long-term (Investors are advised to have an investment horizon of at least one year). The minimum investment for the Standard Investment Equity Growth Fund is Kshs 5,000.
Balanced Fund This will focus on both listed shares and bonds with the aim to achieve some reasonable growth and a satisfactory level of price stability and return. (An investment horizon of at least one year is advised) The minimum investment for the Standard Investment Balanced Fund is Kshs 20,000.
Fixed Income Fund This will target to invest in fixed income securities such as Treasury bills and corporate bonds to give investors fixed but reasonable returns with relatively low risk exposure. The minimum investment for the Standard Investment Fixed Income Fund is Kshs 20,000.
WHAT IT WILL COST YOU (THE CHARGES)
There are basically two types of charges, when you invest in units:
A fixed charge called an Initial Charge. This will be in accordance with the Trust Deed and the Information Memorandum approved by the Capital Markets Authority. Currently there is no Initial Charge for the Standard Investment Trust Funds.
The Annual Fund Management service charge which is likewise stated in the Trust Deed. The Standard Investment Trust Funds have Annual Fund Management Service Charge of 1.5%.
1 copy of ID or Passport.
1 passport size photo.
Copy of registration certificate( for corporates and Registered social groups).