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About Unit Trust

A unit trust is a form of collective investment scheme whose objective is typically to enable an investor to acquire a small stake in a large portfolio of investments and spread risk across many different asset classes (shares, bonds, money market instruments etc). A unit trust scheme is constituted by a trust deed generally entered into between a trustee (typically a bank or insurance company) and the manager of the scheme who will be responsible for investing the assets of the unit trust in accordance with the terms of the trust deed. The investors are the beneficial owners of the trust assets and their interests are represented by units in the unit trust scheme. Each unit represents an undivided share in the unit trust’s assets.

 

investments byprofessional fund managers

These funds are invested by professional fund managers in a portfolio of securities according to the fund’s objectives and investment strategy.

If you invest in a unit trust or fund, your money is pooled with money from other investors and invested in a portfolio of assets according to the fund’s stated investment objective and investment approach. 

A unit trust is a fund which adopts a trust structure; not all funds use a trust structure. Mutual Funds, for instance, are structured as public limited liability companies.

Unit Trust - Fund Price Table

Benefits

A unit trust provides the following benefits to investors

  • Diversification of investment risks even for minimal investments.
  • Tight control over activities by the state regulator.
  • Transparent infrastructure: the funds of unit holders are separated from the funds of the management company and are kept in a specialized depository.
  • Absence of taxation of the current operations of the fund (including the absence of tax on dividend and interest income).
  • Professional management.
  • High liquidity of the unit (for open funds)

Key Factors For Success

A successful scheme will usually

  • Have low expense ratio
  • Have independent and skilled fund manager
  • Have a Diversified Asset allocation policy
  • Employ Strategic Diversification
  • Maintain its investment strategy
  • Avoid frequent switching of assets
  • Be transparent and report accurately

Minimum Requirements for Account Opening -Individuals Accounts

Individual, Joint and Trust accounts

  • National ID Card
  • Proof of Residential address – Ghana Post GPS address; Utility Bill
  • Unabridged birth certificate for minors (under 18 years) 
  • Passport Picture
  • Resident Permit (for Foreign Nationals)
  • Trust Deeds (For Registered Trust accounts)

Minimum Requirements for Account Opening -Corporate Accounts

Sole Proprietorships, Partnerships, Companies, Groups, Clubs,

  • Required Registration Documents (constitution for unincorporated clubs)
  • Registered Office and Postal Address
  • National ID of Beneficial Owners
  • Proof of Residential address – Ghana Post GPS address; Utility Bill
  • Board Resolution (For Companies)

Introducing

Collective Investment Scheme
Date
Previous Price
Current Price
Daily Price Change
Daily Price Change(%)
Inception to Date Returns
Year to Date Returns
Bora Fixed Income Unit Trust
20-May-24
0.149
0.1489
-0.0001
-0.07%
48.9000%
10.0517%
Bora Balanced Unit Trust
20-May-24
0.1678
0.1682
0.0004
0.24%
68.2000%
9.8628%

Unit Trust FAQs

CIS are pools of funds managed by a professional fund manager on behalf of investors in return for a fee. These pooled investments are spread over a range of assets such as bonds, equities or near cash instruments.

CIS can be structured as a unit trust or a mutual fund.

A mutual fund functions as a public limited liability company where investors are considered as shareholders who hols shares in the company.

A Unit Trust is a form of collective investment scheme that allows investors with similar investment objectives to pool their funds together. The investors are considered as trustees of the fund and hold units of participation in the fund.

Unit trusts may be structured in different ways. For instance, as an equity fund (investing predominantly in equities), as a fixed income fund (predominantly in fixed income instruments), a balanced fund (a mixture of equities and fixed income instruments), as a money market fund or a specialised fund.

A unit trust can be open-ended or closed-ended.

Open-ended fund: This type of fund has no restrictions on the number of units the fund will issue. When an investor purchases units in such funds, more units will be created to meet the purchase request. When investors redeem their units, the units will be cancelled. If the redemption amount is high, the fund manager may have to sell some of the fund’s investments / underlying assets in order to meet the redemption request.

Close-end fund: This type of fund has a limited number of units. Unlike open-ended funds, new units will not be created by the fund manager to meet demand from investors. Closed-end funds are intended to be held by investors until maturity, as premature redemptions may incur an exit fee.

Bora Advisors was licensed by the Securities and Exchange Commission (SEC) in June 2022 to run two (2) unit trusts, namely;

1. Bora Fixed Income unit trust
2. Bora Balanced Fund unit trust

The Trust: This is an open-ended Unit Trust that will primarily invest in a diversified portfolio of Fixed Income Securities.

Objective: To preserve and enhance unit holders’ wealth to meet medium to long term financial goals, while creating liquidity to meet short term needs.

The Trust: This is an open-ended Unit Trust that will primarily invest in a diversified portfolio of Fixed Income and Equity Securities.

Objective: To grow unitholders’ wealth to meet medium to long term financial goals. Under normal market conditions, 55% of the Trust’s net assets shall be invested in fixed income securities and the residual 40% in equities.

Both Unit Trusts impose no front load upon subscription or purchase of units.

The Bora Fixed Income Fund imposes no back load upon exit. However, the Bora Balanced Fund has an exit load of 3% shall be charged on funds redeemed within the first year of investment and 2% on redemption during the second year of investment.

The exit charge will be paid into the scheme for the benefit of all clients.

The Bora office shall be open from 8:30 am to 4:00 pm from Mondays to Fridays except weekends and statutory public holidays to receive requests for purchase of units.

To buy units, investors must deposit amounts via bank transfer, cash or cheque deposit into Bora’s account, or via mobile money transfer into Bora’s MoMo accounts. Other approved online/digital platforms can also be used to make deposits.

Alternatively, you may contact your Relationship Manager or visit our office to complete your buy / sell process.

The Bora office shall be open from 8:30 am to 4:00 pm from Mondays to Fridays except weekends and statutory public holidays to receive requests for sale of units.

To sell units, investors must complete an investment withdrawal form on our website and other approved online/digital platforms, attaching their Ghana Card, and send via email to Bora.

Alternatively, you may contact your Relationship Manager or visit our office to complete your buy / sell process

The redemption proceeds are paid to investors within three (3) to five (5) Business Days following receipt of the Redemption request.

Proceeds shall be paid by;

1. Cheque to the applicant and the applicant shall be required to pick up the cheque in person or per instruction have it collected by a third party authorized to do so by the applicant;
2. Transfer into an account (Bank or other collective investment scheme by the Manager) of choice;
3. Mobile Money Platform.

In the case of Joint Investors, payments shall be made in line with the signatory mandate of the clients.

Yes. Switching is considered as a redemption from one unit trust fund and investments into other unit trust funds and will be treated as such. However, in the case of switching from the Balanced fund to the Fixed Income fund, the back load charge will be waived.

Yes. A client can top up their account as many times as they wish

Yes. Clients can view their investment status on the Bora Investment Portal. Alternatively, monthly and quarterly statements will be sent to provide you with an update of your funds.

Additionally, the daily prices and returns for each fund will be published daily and updated on the Bora website.

You can sell part of your units to redeem the profits made over a given period.

Yes. Bora Unit Trusts are openended investment vehicles allows for ongoing new purchases and withdrawals from investors of the pool. Thus, there is an unlimited number of potential shares outstanding.
Unit Trusts and securities investments are subject to market risks and there is no assurance or guarantee that the objective of the Trust will be achieved. As with any investment in securities, the Net Asset Value of the units (‘’unit price’’) issued under the Trust can go up or down depending on the factors and forces affecting the capital markets
It maintains a high level of liquidity,
It is an affordable way to invest as it doesn’t require a relatively large amount to start,
It is actively managed by a team of professionals who readily provide information and analysis,
Your funds are immediately diversified into a large base of investments;
An independent Trustee keeps custody of the scheme assets, hence providing additional oversight and a safety net for investors.

Experienced and skilled fund manager – Bora has been in the fund management firm for almost a decade with skilled professionals that have over two (2) decades of involvement in successfully managing funds.

Low expense ratio – Bora’s Unit trusts maintain a low expense ratio which is paramount to ensuring that the investor gains the most out of their investment.

No front load charges – Both the Fixed Income and the Balanced fund Unit Trusts do not attract any front load charges upon purchase of units.

Transparency and Reporting Bora is committed to sending clients monthly statement in order for clients to know the status of their investments. The Bora team is also available to provide any further clarification or reports that the client may need outside of the regular statement updates. Reports from the Trustee of the fund will also be posted on the Bora website on a monthly basis.

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