all or part of your investment at any time. However, we recommend that investments in any fund except the money market fund should be viewed as medium to longer term (3 – 5 years), as the nature of the main investment assets within the funds follows a longer-term market cycle.

Are there any hidden tax obligations on Unit trust funds?

Unit trusts are a tax-e�cient investment. A unit trust fund does not pay tax on its income, either fromdividends or interest. In addition, unit trusts do not pay tax on capital gains.

What rate of return do Unit trusts O�er?The rate of return rendered by a unit trust fund depends on the following factors: Returns from the �nancial markets, the type of assets within the unit trust portfolio and management skills of the fund manager. The value of shares, treasury bonds, corporate bonds and other asset classes are determined by �nancial markets and can rise or fall over time. Historical performance does not predetermine future performance.

Are there any underlying risks in investing in UAP Financial Services Unit trustfunds?

Generally, the level of investment return is related to the level of risk incurred by any investment, i.e. thehigher the potential risk, the greater the potential return.In the case of UAP FS’ Unit trust funds,

1. Equity & Balanced funds - they provide the highest potential return, but are also associated with the highest volatility.2. Bond or �xed income instruments - Less risky, but also with lower potential returns3. The most secure unit trust funds are generally the money market funds as they invest in short-term securities.

How can I monitor returns in any given unit trust fund of my choice?For transparency purposes, UAP Financial Services will publish the prices of its unit trust funds in thenewspapers. The market value of your investment depends on the current price of the unit at a particular period of time. The number of units you have needs to be multiplied with the current price which then gives you the market value of your investment.

For more information, please feel free to contact us or any of our Investment Advisor

Unit Trust FundsFrequently Asked

Questions

UAP Financial Services LimitedPlot 3-5 New Port Bell Road, 6th Floor - 1st Tower,

UAP Nakawa Business Park , Kampala (U)Tel: +256 - 414 - 332 732, +256 - 754- 443 788

Email: �nancialservices@uap.co.ug | Web: www.uap.co.ug

What is a Unit trust?

A unit trust is a collective investment scheme, which pools contributions from investors with a common investment objective. The pooled funds are then used to purchase a portfolio of �nancial securities. Depending on the objective of the unit trust, the type of securities to be bought can comprise of: equities (shares), bonds, cash, bank deposits etc. The unit trustportfolio is managed by a professional fund manager, while the assets are held by a bank acting as a custodian.

What sort of asset classes does a fund manager invest in upon receipt of monies from investors?

• Local Stock Market - Listed shares• Treasury Bonds• Commercial Papers• Treasury Bills• Offshore Investments• Fixed Deposits• Infrastructure Bonds• Corporate Bonds• International Equities etc.

Why should I trust Unit trusts?

As the name indicates, a unit trust is de�ned by a “trust” framework. This legally installs an independent trustee who holds the investments and monitors the actions of all involved parties. The trustee safeguards the interest of all unit holders.Additionally, unit trusts are regulated by the Capital Markets Authority (CMA). The regulator also ensures that unit trusts are safe and checks all involved professionals and organizations. Only licensed professionals are allowed to operate unit trusts.

What are the bene�ts of investing in Unit trusts?

Unit trusts have become increasingly popular because they provide cost e�ective access to both the �xed income market and the stock market. An investor is able to diversify risk and tap into some investments that he/she would rather have been unable to access through the expertise of a professional fund manager.

How does an investor purchase Units?

An investor can purchase units through an investment advisor from UAP Financial ServicesLimited, upon receipt of proper advice.

What is the current minimum investment amount?

The minimum lump sum investment amount is UGX 3,000,000 in each of the respective funds.An investor can also choose to make regular investments through an initial lump sum of Ugx 1,000,000 and regular amounts of UGX 100,000 in any of the respective funds.

How does the fund manager determine how many units to allocate to an investor?

When you invest in a Unit Trust fund, the number of units you will receive is calculated by dividing the investment amount by the o�er price at the time of purchase.For example, when you purchase at a price of UGX 1000 and you invest UGX 3,000,000 you will receive 3,000 units. This number of units will be shown in your monthly statement. The value of these units will then change in accordance with the price of the unit trust. The price of the unit trust is dependent on the value of the securities (sometimes called underlying assets) that are bought for the unit trust fund by the fund manager.

What should I know before investing in a unit trust fund?

To align your interest and expectations with the objectives of the unit trust fund, you need to consider certain factors before taking the decision to invest. You need to determine what your investment objective is, your risk appetite, your investment horizon and possibly whether you will need the money in the short or long term.It is important to bear in mind that the value of the unit trust will �uctuate in accordance with the underlying investments and any income may go down as well as up.

When is the best time to invest in a unit trust fund?

Customarily, it is a good idea to invest regularly to take advantage of “cost averaging”. Capital market products such as shares and unit trusts �uctuate in price, sometimes strongly. History shows that it is very di�cult for any investor to predict market conditions i.e. to buy units at the lowest price and sell them at the highest price. Therefore, you are more successful if you invest regularly over a longer time period.

Tell me about the di�erent service providers involved in Unit trust management and what their speci�c roles are.

There are di�erent roles in a unit trust to make it a secure investment and these include:

1. The Trustee - will monitor all involved parties and check all transactions done by the fund manager and the custodian are in accordance to the law.

2. The custodian - will safeguard the assets and the securities of the unit trust in a separate account.3. The fund manager - will invest the portfolio across various asset classes and will use its market knowledge and expertise to give superior rate of return.4. The auditor - will check and audit the unit trust operations on an annual basis to further enhance your security.

How quickly can I have access to my money in the event that I decide to sell?

UAP Financial Services unit trust funds provide you with easy access to your money. Normally, your money should reach your account within �ve working days after you have placed a valid sales order. You can sell