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ABOUT INHLONHLA UNIT TRUST

Inhlonhla Unit Trust Management Company (Pty) Ltd is a 100% subsidiary company of Inhlonhla(Pty) Ltd. The company has been incorporated as a Collective Investment Scheme Manager and is fully registered with the FRSA (Registration No: CISM/002/17).

INHLONHLA UNIT TRUST FUNDS COLLECTIVE INVESTMENT SCHEME

Inhlonhla Unit Trust Funds Collective Investment Scheme is an investment vehicle which enables different investors to pool their money together into different funds (portfolios).

Each fund has different characteristics to cater for the varying needs of different investors. Because each of our funds spreads your money across a range of assets, your overall investment risks are reduced. The scheme is operated by Inhlonhla Unit Trust Management Company which invests the funds’ capital with the aim of producing income for you, the unit holder.

The different funds are structured and maintained to match the investment objectives stated in the prospectus. Unit trust funds are made up of equal portions called units. Each unit has a price, or Net Asset Value (NAV) based on the value of the underlying assets of the fund. The underlying assets in a fund can be made up of equities, bonds, real estate, bank deposits and other instruments. When you purchase units, you are purchasing a right to a portion of the returns earned by the fund’s portfolio of investments.

1. Diversification

Unit Trusts typically invest in a number of instruments that are from different companies or different sectors and/ or geographic regions. Thus the poor performance of one company, sector or geographic region is not likely to have major adverse impacts on your investment as a whole.

2. Risk level awareness

A unit trust fund has an investment mandate and this gives an idea of whether the fund is a low-, medium-, or high-risk investment.

3. Regulatory oversight

The Financial Services Regulatory Authority (FSRA) regulates the unit trust industry and all unit trusts that are marketed in eSwatini are registered with the FSRA.

4. Low entry costs

When building your portfolio the costs associated with buying units in a unit trust fund are lower than buying different individual securities. This is due to economies of scale where costs of accessing extensive research, as well as administrative, operating and trading expenses are spread among a large number of unit trust investors.

5. Safety of Funds

A bank or financial institution not affiliated to the fund manager is appointed to look after the cash, shares or bonds owned by the fund. This means even if anything were to happen to the Unit Trust Management Company, your money will still be safe because it is held in a trust.

6. Professional expertise

CIS investments are managed by experienced and skilled professionals, who, with the help of investment research teams, analyse and select suitable investments to achieve the scheme objective.

7. Statuary limitation

The Securities Act limits the amount of investments that can be made per investment class thus limiting investment risk.

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