UMANDE launches primary offer

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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