Unit Trusts/Mutual Funds are generally medium to long term investments. The value of participatory interests may go down as well as up and past performance is not necessarily a guide to future performance. Fluctuations or movements in exchange rates may cause the value of underlying international investments in a fund to move up or down. Income from the fund is reflected daily through increased unit prices. Prices are calculated on a net asset value (NAV) basis which is the total value of all assets in a fund including any income accrual and less permissible deductions from the fund. Unit prices are available daily and can be obtained by sending an email via investmentszm@bancabc.com.
Fees and charges associated with running the funds, are available as disclosed in the marketing brochures. CIS are financial products and not investments in insurance policies with an insurer and therefore cooling off periods do not apply. ABC Asset Management does not provide any guarantee either with respect to the capital or there turn of a fund.
The directors and personnel of ABC Asset Management may also have investments in any of the Unit Trusts. ABC Asset Management utilizes Atlas Mara Zambia’s core banking, electronic and telephone banking platform. All requests for transactions received on or before 16:00 hours everyday will traded at ruling prices and valued after 16:00 hours on that day. Investments in funds with foreign securities may involve various material risks, which include potential constraints on liquidity and there repatriation of funds, macroeconomic, political, foreign exchange, tax and settlement risks and potential limitations on the availability of market information and there may be tax to be levied on certain of the benefits accruing to the investor from the funds and ABC Asset Management may be required to deduct and pay over to the authorities any such tax from such benefits before paying any balance to or
for the benefit of the investor.
With the approval of the Trustee and the Commission, ABC Asset Management may in exceptional circumstances suspend the issue, cancellation, sale and redemption of units in the fund. The investor understands that the legal and tax environment is continually changing, and that ABC Asset Management cannot be held responsible for any changes to the law which might have an effect on their investment, and which did not exist at the time their investment was made. Additional information on the fund including, but not limited to, brochures, application forms, annual and half-yearly reports are available free of charge from the ABC Asset Management office at Atlas Mara House, Ground Floor, Corner of Church/Nasser Roads or upon request via investmentszm@bancabc.com.
The investor further acknowledges that they are aware that ABC Unit Trusts are not bank deposit accounts, a constant unit price of K1 (one kwacha) will be maintained although, owing to circumstances, it may be amended to a lower amount, the total return to the investor is made of interest received and any gain or loss made on any particular instrument, in most cases there turn will merely have the effect of increasing or decreasing the daily yield but in cases of abnormal losses it can have the effect of reducing the capital value, the yield is calculated using an annualized seven day rolling average and excessive withdrawals may place liquidity pressures and in such circumstances a process of ring fencing of withdrawal instructions and managed pay-outs over time may be followed. The investment return is not guaranteed and is dependent on the performance of the underlying investments.
ABC Unit Trust will not have more than 25% in any one single entity. African Banking Corporation Investments Services Limited T/A ABC Asset Management is a registered Dealer and Collective Investment Scheme Manager and a full member of the Capital Markets Association of Zambia. This document is part of the Minimum Disclosure in terms of the Advertising, Marketing and Information Disclosure requirements for Collective Investment Schemes as requested by the Securities Act of Zambia.
Taxation: The Fund is exempt from Income Tax under the Second Schedule of the Income Tax Act. It is entitled to Withholding Tax Exemption upon application to ZRA, the Withholding Tax Certificate exempts the Fund from taxes on revenue earned from Dividend Income and Interest earned on savings and deposit accounts. However, the Fund is not exempted from interest earned on Corporate Bonds, Government Bonds and Treasury Bills. The Fund is also not exempt from VAT. However, investors need to note that the returns from the fund could be affected by changes in the tax treatment or interpretation of the fund and or changes in law relating to the taxation of the property transactions.
