Britam Money Market Fund

INTRODUCTION TO BRITAM ASSET MANAGERS

• Britam Asset Managers Ltd (The Fund Manager) aspires to be the leading and most trusted investment advisory and asset management firm in the region.
• The company was incorporated in April 2004 to fulfill a gap in quality fund management and investment advisory services to individual and institutional investors.
• The company has KES. 146.4B in Assets Under Britam Asset Managers Ltd.
• The company is ranked Number 1 Unit Trust of the year 2016

Background
❑ Britam Asset Managers is the market leader in the provision of low risk, fixed income investment solutions

❑ We invest client funds in the below fixed income assets;
▪ Listed Treasury Bills
▪ Listed Treasury Bonds
▪ Bank Deposits

❑ The investment funds are largely appreciated by Individual and Institutional clients owing to benefits including;
▪ Enhanced returns
▪ Diversification of Risk
▪ Effective cash flow management
▪ Fund Access timelines

BRITAM MONEY MARKET FUND

• Well diversified low risk fund which offers a high level of current
• income by outperforming banks’ current accounts.
• Suitable for short term investment goals and emergency fund savings.
• ** Recommendable investment period is at least 1-6 months
• Interest is earned and compounded daily.
• Open ended fund enabling quick access of funds
• Average return is between 12.00 – 13.50% p.a
• Minimum initial investment and top up amounts is Kes. 1,000
• Interest declared/published is net of fees but gross of tax (15% withholding tax on interest only)
• Interest can be paid out monthly upon request.

Monthly savings can be achieved via bank standing orders, bank transfers or Mpesa

• Interest can be paid out monthly upon request
• Top ups can be done via Mpesa-Pay bill 500005
• Monthly statement is sent out via email, hence you are able to keep track of your investment

Sign Up Via BELLA, our interactive Chat Bot

Start Chat: https://wa.me/254705100100/?text=Hi

From the Menu Select Invest with Britam-Select New Customer- Choose Bond Plus Fund- Invest- Enter Your Details

Select Yes on Financial Advisor referral and put my Name Gallin Wekesa, plus Phone number 0712870447

Thank you for choosing Britam. We look forward to assisting you!

DOCUMENTS REQUIRED FOR COMPANY/GROUP INVESTMENTS

• Filled in company application form
• Certificate of Incorporation
• Resolution/Mandate to invest
• Copy of PIN of the organization
• Proof of bank details: Bank statement not more than 3 months old or, Original Cancelled cheque leaf or, Certified letter from the bank confirming account details
• Investment Funds cheque or deposit slip in the correct fund
• Copy of ID/Current Passport for Authorized Representatives
• Proof of Residential Address for Authorized Representatives: Utility bill not more than 3 months old(Water or Electricity Bill) or a filled in Address Verification Letter provided by Britam

DOCUMENTS REQUIRED FOR INDIVIDUAL INVESTMENT

• Filled in individual application form
• Copy of ID/Current Passport
• Copy of PIN
• Proof of bank details: Bank statement not more than 3 months old or, Cancelled cheque leaf or, Certified letter from the bank confirming bank details
• Proof of Residential Address: Utility bill not more than 3 months old(Water or Electricity Bill) or a filled in Address Verification Letter provided by Britam
• Investment Cheque or Deposit slip in the correct Fund

*** In the event the investment is for joint investors documents for both parties have to be provided

Our Differentiation

• Highly innovative culture towards fund management
  • We are constantly looking at how we can deliver superior long-term returns to our clients and serve them better
• Offering most diverse set of investment products
  • Offering includes both public markets investments (mainly equities and fixed income) and private / alternative markets investments (mainly property and private equity.)
• A highly qualified team with diverse background and experiences

• We have a highly qualified team with diverse backgrounds and work experience gained both locally and in global markets
• Tailored and relevant investment solutions that are not limited by breadth and depth of products and capabilities
  • Because we have the most diverse set of investment products in the local market, we are able to look at the specific needs of our investor, and offer fund management that speaks to their specific needs
• Strong brand and networks
  • Fund Management practice is backed by the strong Britam brand that has been in the region for the last 50 years

Gallin Wekesa – Financial Advisor at Britam

0712-870-447 gallywexa@gmail.com/gwwekesa@britam.com

Asset Management FAQs

What is a unit trust?

A unit trust is a collective investment scheme in which investors’ contributions are pooled together to purchase a portfolio of financial securities, such as equities (shares), bonds, cash, bank deposits etc. The portfolio is managed by professional fund managers. Each unit trust fund or portfolio has a specific investment objective – income, growth or a combination of the two. The investment objective of a particular unit trust will determine the proportion of the fund invested in a particular security such as company shares. As the name suggests, a unit trust has a trust framework, with the investments held by an independent trustee. Unit trusts are regulated by the Capital Markets Authority to ensure that they are safe and that only registered professionals are involved with the affairs of the unit trusts. Unit trusts and other collective investment schemes such as mutual funds have been around the world since the 1930s and have become very popular as the ideal alternative in providing cost effective access to stock markets and fixed income investments, and diversifying one’s portfolio of investments.

What is a unit?

Your contributions to a unit trust are used to purchase units. Each unit represents an equal fraction of the total value of the pool of invested money. Units in the British-American Unit Trusts are brought from the fund manager, British-American Asset Managers Limited, and sold back to them in the event unit holders need to redeem their units. When you invest in a British-American Unit Trusts, the number of units you are allocated is calculated by dividing the amount you invest by the offer price at the time. As an example, if the offer price for each unit is Kshs 100, an investment of Kshs 250,000 will buy 2,500 units. The value of units moves in accordance with the performance of the unit trust’s assets.

What should I consider before I invest in a unit trust?

Before considering investing into a unit trust, the following should be ascertained:

1. Your risk profile
2. Your time horizon for the investment

3. Whether you require regular income from the investment or purely looking for capital growth.

Unit trusts are considered appropriate investment vehicles for individual investors wanting to gain long-term exposure to financial markets. However, the value of a unit trust depends on the value of the underlying assets within the portfolio. Therefore, the value of the unit trust will fluctuate as the values of the underlying assets fluctuate.

When is the best time to invest in unit trusts?

You can invest at any time. However, it is very difficult for an investor to predict market conditions i.e. to buy units at the lowest price and sell them at the highest price. Our knowledge and insight into the workings of the financial markets enables us to provide the investor with expertise which takes into account market fluctuations and applies an effective investment strategy. One of the most common mistakes made by investors is to switch in and out of unit trusts based on short-term performance figures. Periodic switching between funds can lead to increase in the cost of transactions, which can reduce the return on your investment. It is important to note that portfolio managers do not manage funds on a short- term basis. Most portfolios, particularly equity funds, are managed to generate consistently good returns over a period of five years and above. A good strategy is to buy unit trusts on a regular basis – termed shilling cost averaging. This method allows you to avoid the risk of poor timing, which may result in buying when the market is high and selling when the market is low.

What are the benefits of investing in a unit trust?

You gain several benefits from pooling your money in a trust with other investors.

Potentially superior returns: Unit trusts provide potentially superior returns to fixed deposits over the longer term, providing investors with the opportunity to build real wealth.
Easy and affordable investment: Unit trusts are a convenient and low-cost way of investing in financial markets. They enable investors to invest in a wide variety of diversified portfolios of shares, bonds and other financial instruments they would not necessarily be able to afford as individuals. Investor can share in the rewards of the stock exchange without the risks of direct investment. Unit trusts offer investors the choice of switching their portfolios when their needs and risk profile changes and the choice of increasing, stopping or decreasing stop orders without penalties.

Diversification of risks: With a relatively small investment, a collective investment provides access to a broad spread of different shares and investments. This diversification helps to reduce your risks because it makes you less dependent on the performance of one company.

Expertise in Professional Management: British-American Unit Trusts are managed by highly qualified investment managers and investment specialists whose full-time job is to make investment decisions. Few people have the time, skills or experience to actively manage their investments and research the best way of making money. By investing in the British-American unit trusts, experts experienced in investments are managing your money on a daily basis and ensuring your peace of mind.

Value for money: British-American unit trusts are designed to give investors good value for money. The pooling of money increases the buying power by enabling the payment of lower dealing and administration costs than if the investor had invested directly in a selection of investments. The pooling of investments also enables the fund manager to buy shares, money market instruments such as treasury bills, bonds and other investments which would be beyond the reach of the average investors.

Flexible investment options: British-American unit trusts provide investors with the following investment options:

Lump sum investments: A lump sum investment can be made at any time during the life of the investment,
resulting in the entire investment benefiting from the growth and income potential of the chosen unit trust. Following the opening of your account, you are able to invest any additional amounts to top up your account.

Monthly Investment Plan: A regular monthly investment can be made into your account resulting in an easier way of building capital. A monthly investment has the benefit of shilling cost averaging, where additional investments can be made during times of market weakness. A Monthly Investment Plan would also allow you to invest in a long term savings plan to meet your desired financial goals.

Switching: Investors are able to switch their investments between different portfolios.

Cash Withdrawal Facility: The Cash Withdrawal Facility allows you to take regular withdrawals from your British-American unit trusts. The facility is useful if you are investing for a specific event in the near future where you will require a regular flow of cash to pay for school fees, fund your children’s further education or to supplement a regular income. The Cash Withdrawal Facility is flexible, simple and tax-efficient way of taking withdrawals from your investments.

Liquidity: British-American unit trusts are flexible and easily accessible. You can sell all or part of your investment at any time. However, we recommend that investments in the Balanced Fund and the Equity Fund should be viewed as medium to longer term of 3 to 5 years or more in order to benefit from market cycles.

Tax efficient: Unit trusts are highly tax efficient investment. A unit trust fund does not pay tax on its income, either from dividends or interest. In addition, unit trusts do not pay tax on capital gains.

Safe and Transparent: Unit trusts are strictly controlled the Capital Markets Authority under the Capital Markets (Collective Investment Schemes) Regulations, 2001. The regulations impose duties and responsibilities on the key functionaries of the fund including fund manager, custodian and trustee. The fees and charges are transparent and are published in the Information Memorandum. Information on the investment performance is provided in a report audited by external auditors. Each unit trust has a Trust Deed, the legal document
establishing the trust, and an Information Memorandum, of which a copy are available by email. What returns can I expect from my investment?

Investment returns on a unit trust fund depend on the following:

1. Returns from the financial markets

2. The type of assets within the unit trust portfolio

3. The management skills of the portfolio managers.

The value of shares, bonds and other asset classes are determined by financial markets and can rise or fall over time. In general, equity-based unit trusts provide the highest potential return, followed by bond or income funds and finally money market funds. In addition, the level of investment return is generally related to the level of risk incurred i.e. the higher the potential risk, the greater the potential return.

What are the tips to successful investing? Before investing, it is useful to follow the following steps to ensure success
1. Identify your goal for investing This could be meeting future education expenses, retirement, payment of a deposit for a house or a savings plans

2. Establish a time-frame for your investment Be realistic about the time commitment for your investment. It is recommended that investments in unit trusts be medium to long-term investments.

3. Identify the level of risk It is important to understand the level of risk associated with different types of investments

4. Select a unit trust fund which best meets your requirements above.

For More information and How to sign up,

Contact

Gallin Wekesa – Financial Advisor at Britam

0712-870-447 gallywexa@gmail.com/gwwekesa@britam.com