Enwealth Capital
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Information Memorandum

The Enwealth Capital Unit Trust Scheme Information Memorandum: risks, tax, unit holders' rights, fund objectives, fund manager, trustee and custodian.

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  • Funds denominated in Kenya Shillings
  • Fund Manager: Old Mutual Investment Group Ltd
  • Trustee: The Co-operative Bank of Kenya Ltd

About the Scheme

In terms of Part IV of the Capital Markets Authority (CMA) Collective Investment Schemes Regulations, 2022, permission has been granted by the CMA to offer to the public the securities which are the subject of this issue. As a matter of policy, the CMA assumes no responsibility for correctness of statements or opinions made or reports contained in this Information Memorandum. This statement is valid as of October 2022.

Scheme Overview

The Enwealth Capital Money Market Fund, Enwealth Capital Balanced Fund and Enwealth Capital Equity Fund (collectively the Funds) are Unit Trust Funds registered in terms of a Trust Deed, each individually, at the Offices of Enwealth Capital Ltd, which is the address where the Trust Deed and any other periodic reports may be obtained. Enwealth Capital Limited, the Fund Sponsor, was granted consent to register the Enwealth Capital Unit Trust Scheme on 24th October 2022.

Risks Associated With Investment

It is important to note that there are risks associated with Unit Trust investments, and more specifically that the price of units may fall as well as rise. There are no guarantees on investment capital or return. Past performance should not be used as a guide to future investment performance. It is recommended that should you have any queries with regard to this information memorandum or investing in the Funds, you should consult a financial advisor.

Applicable Tax Laws

The Funds are domiciled in Kenya and therefore fall under the tax law of Kenya. As all income is distributed, the Funds themselves do not attract any income tax. Unit holders are however cautioned that their particular tax position will depend on a number of circumstances and that it may be desirable to consult a qualified tax advisor.

Unit Holders’ Rights

  • All unit holders shall have a real right to their units and each unit is entitled to an undivided share of the relevant Fund and ranks equally with other units.
  • The unit holders shall not be liable for the debts of any of the Funds.
  • At no time shall any unit holder acquire any rights against the Trustee or Enwealth Capital Ltd except as expressly conferred upon unit holders in terms of the Trust Deed.
  • The Trustee shall not be bound to make any payment to unit holders except out of funds held or controlled by it for that purpose under the Trust Deed.

Unit Holder Voting Rights

  • In terms of the Trust Deed, each unit holder present at a duly convened meeting of the holders shall be entitled to vote, either personally or by proxy, on a show of hands on any matter affecting his/her rights.
  • The voting rights associated with the underlying securities held by any Fund shall be exercised by Enwealth Capital Ltd on behalf of the unit holders in a manner considered to be in the best interests of the unit holders.

Denomination Of Units

The Funds are denominated in Kenya Shillings.

Required Capital

Each Fund shall have at all times a minimum of Kshs 1,000 invested capital with no maximum.

Winding Up Of Funds

  • The Funds can be wound up by court order.
  • Upon the winding up of any Fund, Enwealth Capital Ltd shall realize the underlying securities comprising such Fund as quickly as possible having regard to the interests of unit holders, as to the timing of realization of any security.
  • Upon the realization of the entire Fund in question and upon settlement of all liabilities of the Fund, Enwealth Capital Ltd shall make a final distribution to unit holders.

Investment Policy & Objectives

Investments to be included in each Unit Trust fund portfolio shall comprise a mix of securities as provided within the Trust Deed with the aim of achieving the primary investment objective of each fund as follows:

  1. Enwealth Money Market Fund

    • The Fund’s primary objective is to generate periodic interest income.
    • The Fund invests in fixed deposit instruments and short-term debt securities provided that such debt securities do not have a tenor exceeding 12 months.

  2. Enwealth Balanced Fund

    • The Fund’s primary objective is to seek long-term stability and growth of capital consistent with moderate investment risk and a reasonable level of current income.
    • The Fund invests in money market, equities and fixed income instruments.

  3. Enwealth Equity Fund

    • The Fund’s primary objective is to provide an efficient investment medium whereby investors can participate in a portfolio that will seek to provide total return, in the form of both income and capital growth which will be consistent with the fund investing a minimum of 60% of the market value of its assets under management in equities.

Accounting Period

The Funds’ financial year-end is 31 December.

Fund Manager

Old Mutual Investment Group Ltd, 4th Floor, Old Mutual Tower, Upper Hill Road, Nairobi.

Trustee

The Co-operative Bank of Kenya Ltd, CIC Plaza, 3rd Floor, Mara Road, Upper Hill, Nairobi.

Custodian

SBM Bank (Kenya) Ltd, Riverside Mews, Riverside Drive, Nairobi.

Evidence Of Title

Enwealth Capital Ltd shall issue a certificate as evidence of title upon request from a unit holder. A record of all unit holders’ interests will be kept in a register which shall be kept at the offices of Enwealth Capital Ltd.

Payments To Fund Manager

The Fund Manager shall be entitled to deduct monthly management fees. Payments to the Auditor, Custodian & Trustee shall be debited as expenses to each Fund.

Sale & Redemption Of Units

Enwealth Capital Ltd will receive requests for the issue, switching or redemption of units from 09h00 – 15h00, and for that purpose to accept application monies. The minimum number of units that may be purchased shall be determined by Enwealth Capital Ltd from time to time.

Valuation Of The Fund

The formula to determine the Net Asset Value per unit of each Fund is to divide the aggregate market value of the underlying assets of each Fund LESS its expenses and/or liabilities by the units in issue.

General Information

The Fund Manager shall provide the Trustee and the Authority with an audited report of the funds within three (3) months of the accounting period.