Core Capital Limited has launched UMANDE
Unit Trust (UUT), a new collective investment scheme that aims to
provide investors with big firm investment opportunities using their
meagre small-firm resources.
This follows the Capital Markets and
Securities Authority (CMSA) approval of the relevant legal documentation
of Core Capital Limited as licensed Investment Advisor and SSRAlicensed
Fund Manager UUT is the second unit trust to be licensed in Tanzania,
following the Government sponsored Unit Trust of Tanzania (UTT).
The UUT Managing Director George Fumbuka
said in Dar es Salaam on Tuesday that investors have this additional
avenue for investing their resources and managing their financial
circumstances.
“The main advantage that UUT offers over
other investment vehicle is its flexibility to address different
investor groups irrespective of their age, occupation or financial
circumstances. UUT comprises different funds, each with its own
increment objectives and operational style,” He said.
He said the investor is free to choose
between three Schemes: one for capital appreciation; another for income
primarily; and a third balanced for both income and some capital growth.
“We have categorised the IPO in three
categories such as; Up to 100,000,000 units each of Tshs 100 in the
Umande Capitalisation Fund, Up to 150,000,000 units each of Tshs100 in
the Umande Income Fund and Up to 200,000,000 units each of Tshs100 in
the Umande Balanced Fund,” said Mr. Fumbuka.
He mentioned that under the
Capitalisation Scheme and the Balanced Scheme one can choose between a
growth option and a dividend option.
Meanwhile, under the Income Scheme the
investor has got a dividend reinvestment facility that can plough back
his/ her dividends into more Units, which translates in the long run
into a higher Net Asset Value (NAV) to be recouped in the normal weekly
redemption.
The offer opened on 18 May 2015 and is
expected to close on Friday 24 of July, 2015; during that time, units
will be sold at a fixed price of 100 shillings per unit.
He said that unlike shares, unit trusts
are not traded on the stock exchange. Instead, the manager stands ready
to buy and sell any units by giving relevant instruction to the
Custodian to receive funds from depositors and make payment to unit
holders who wish to sell.
Source: Daily News, reported from Dar es Salaam, Tanzania
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