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  • HFC Unit Trust

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HFC Equity Trust

The HFC Equity Trust -established in 2004 - is an open-ended long-term collective investment scheme. The objective of the Trust is to mobilize funds from the general public for investment in shares of listed companies on the Ghana Stock Exchange. Investments in other organized and regulated market is currently under consideration. The Fund endeavours to maintain a diversified portfolio of securities with the objective of achieving long-term capital growth, preserving investors’ capital, and ensuring easy access to the fund. The fund generally invests in a portfolio that is tilted towards the capital market with a composition as follows - Equities (70-80%); Money Market (5-10%); Other Schemes (10-15%); and Cash & Bank (5%).

Read Our Equity Trust FAQs below

What is the HFC Equity Trust?

The HFC Equity Trust is an open-ended long term collective investment scheme with the objective of mobilizing funds from the general public and investing same into shares of listed companies on the Ghana Stock Exchange (GSE) as well as other organized markets over the world. It was set up in July 2004 by HFC Bank (Ghana) Limited as part of the family of funds managed by the HFC Investment Services Limited, a wholly owned subsidiary of the bank.

The Fund’s Investment Objectives

  • The Fund endeavours to maintain a diversified portfolio of securities with the objective of achieving long-term capital growth, preserving investors’ capital, and ensuring easy access to the fund.
  • Investment Strategy and Portfolio Structure

The fund generally invests in a portfolio that is tilted towards the capital market with a composition as follows:

  • Equities  70% - 80%
  • Other Schemes 10% - 15%
  • Money Market 5%  - 10%
  • Cash and Bank 5%
 

How different is the HFC Equity Trust from the other existing funds in the family?

The existing funds are the HFC Unit Trust, HFC Future Plan Trust, and the HFC Real Estate Investment Trust (REIT). The HFC Unit Trust invests mainly in money market instruments while the HFC REIT invests directly into real estate sector. The HFC Future Plan Trust invests in both money market instruments and the stock market as a balanced fund.

 

How does the Fund operate?

The fund mobilizes savings from individuals, Pension/Provident Funds, Social clubs, religious bodies, charities, insurance firms and other corporate bodies into a pool and invests such funds on behalf of members.

 

How can I invest in the fund? What are the payment methods?

Cash payments at any of the HFC Bank branches. Cheques can also be made payable to HFC Equity Trust.

Standing Orders can be instituted by clients for periodic investments. For clients with HFC Bank accounts, no transfer fees will be charged for standing orders.

Postdated Cheques can be issued; Wire transfers can be initiated at any bank. Ask for details at a branch.

 

Who decides on where my money should be invested?

The Fund Manager is responsible for the selection of assets and the management of the portfolio based on the above methodology and philosophy. However, unit holders do not have direct ownership of the individual securities purchased by the fund but rather are part owners of the fund.

 

What type of returns can I make from my investment?

Members of the Fund will receive both capital gains/losses and income as the total returns from investing into the fund. Capital gains/losses is the difference between the current market price of the unit and the purchase price. E.g. If you bought a unit at 100.00 and the current price is 150.00, then the return is the 50.00 difference. Investors are to note that the yield on this investment is not guaranteed and may rise or fall.

 

How can I monitor the performance of my investment?

Regular publication of the unit price of the fund will be made available in the press and on this website. Additional information will also be provided in the annual report on the fund. Clients may request for statement by phone, e-mail or calling personally at the offices of the Manager.

 

How can I get out of the Fund completely or redeem part of my money?

Complete a redemption form and submit it duly signed. The manager is obliged to redeem the units and make payments for them within a maximum of five working days at the prevailing bid price on the actual day of disinvestment as displayed by the Manager. Investors are to note that full or partial redemptions shall be allowed one year after the first investment and that any form of redemption before this period will attract 2.5% penalty on the value of the disinvestment. Cheques issued for redemption up to an amount of two thousand can be cashed at any branch.

 

Who are the Regulators of the Fund?

The HFC Equity Trust was established under the Companies’ Code 1963 (Act 179). The scheme is authorized by the Registrar-General of companies under the terms of section 318 of the companies code. Following the promulgation of the Securities Industry Law, 1993 (PNDC Law 333), the operations and regulations of the HFC Equity Trust falls under the supervision of the Securities and Exchange Commission (SEC) Ghana and the Ghana Stock Exchange.

Trustees

Merban Investment Holdings Limited, a subsidiary of Merchant Bank (Ghana) Limited is the Trustee of the Fund. It is the Trustees’ responsibility to ensure that the Fund is managed effectively for the benefit of the unit holders.

Auditors

Pannel Kerr Forster, a firm of reputable Chartered Accountants, audits the Fund.

 

What benefits do I get for investing in the HFC Equity Fund?

Experience Fund Managers:

HFC Investments Services Limited has been in the fund management business since 1991 and thus has the infrastructure and experience to manage the fund.

The company’s management team is made up of highly trained and experienced officers who have achieved competitive return for investors in the year past and can be counted on to render dedicated services.

A track record of good performance of Fund Value

Since its launch in July 2004, the Equity Fund has registered a steady growth in the Fund Value rising from over GH¢ 700,000.00 to GH¢1.9 million by the end of 2010.

Access to Banking Services

HFC Bank will provide you access to all the banking services that it provides to its customers.

Experience and Skilled Fund Management

HFC Investments have been in the fund management business since 1991 and thus have the requisite infrastructure to manage any fund. The managers of this fund currently manage three other funds (HFC Unit Trust, HFC Future Plan Trust and HFC REIT) and thus can assist in the diversification of investment objectives.

Independent Trustees

The unit holders will have the protection of independent Trustees in whom the assets of HFC EQUITY TRUST will be vested and who shall exercise supervisory duties as stated in the Trust Deed.

 

Are there any risks associated with the fund?

The funds may be exposed to the following risks:

Market Risk

Volatility in the prices of securities is inherent in investing in stocks of companies due to changes in conditions in the financial markets. Generally, investment in equity securities carries greater risk than investment in money market instruments like treasury bills. Therefore, while returns on equity investments can be very rewarding, the risks associated with such investments could be commensurately high.

Interest Rate risk

Interest Rate risk is the effect of interest rate fluctuations that can affect investments in money market instruments.

 

Are there any charges associated with the fund?

A management Fee of 2% is charged on the Fund value. However, this cost is not borne directly by the customer. All expenses directly traceable to the Fund shall be charged to the Fund.

The other benefits are:

  • No entry charges
  • Low Operating Costs
  • Transparency
  • Tax Exemptions
 

Account Log-in

Cherished Customer, Kindly Click Here to Check Your Balance or View and/or Print Statement.

Applicable for any of our four(4) funds: F-Plan, Equity Trust, Unit Trust, or REIT.

Prices (October 19, 2017)

  • HFC REIT

  • UNIT TRUST

  • EQUITY TRUST

  • F PLAN

Bid Price Offer Price Yield
(GH¢) (GH¢) (%)

3.0741

3.1048

12.37

Bid Price Offer Price Yield
(GH¢) (GH¢) (%)

0.4890

0.4939

20.43

Bid Price Offer Price YTD
(GH¢) (GH¢) (%)

0.6607

0.6607

24.66

Bid Price Offer Price YTD
(GH¢) (GH¢) (%)

2.3155

2.3155

17.57