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  • HFC Unit Trust

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HFC REIT

This is a collective scheme - set up in 1995- invests directly in the real estate industry. The HFC REIT’s main objective is to provide investors with capital appreciation in a long term diversified portfolio.  The professionally managed fund’s primary focus is to invest mobilized funds into securities of real estate companies, development of real estate or invest equity in companies that engage in real estate investment activities.

To obtain its high-income goal, the fund invests mainly in real estate, land, and bonds. A small percentage of the fund is invested in money markets instruments.  Capital appreciation is achieved by investing about 75% of the portfolio in real estate projects, which provide higher gains. Twenty-five percent (25%) of the fund is also invested in high-yielding short-term securities to provide liquidity. The Trust it serves as an alternative investment vehicle for diversification into residential and commercial real estate activities. Through this special purpose investment vehicle the fund has developed over eighty (80) executive houses and serviced plots in Communities 18, 20 and 25 at Tema.

Read Our REIT FAQs below

What is HFC Real Estate Investments Trust (REIT)?

The HFC REIT is a collective investment scheme whose main objective is to provide investors with capital appreciation in a long term diversified portfolio.  The professionally managed fund’s primary focus is to invest mobilized funds into securities of real estate companies, development of real estate or invest equity in companies that engage in real estate investment activities. Set up by HFC Investments, a subsidiary of HFC Bank in July 1995, it serves as an alternative investment vehicle for diversification into residential and commercial real estate activities.

Investment objectives

The HFC REIT has a dual objective, being, high income and long term capital growth.  The manager of the HFC REIT invests directly in housing developments; equities of corporate real estate institutions, and holds property for rental income.  Twenty-five percent (25%) of the fund is also invested in high-yielding short-term securities to provide liquidity.

  • Investment strategy and portfolio structure
    To obtain its high-income goal, the fund invests mainly in real estate, land, and bonds. A small percentage of the fund is invested in money markets instruments.  Capital appreciation is achieved by investing about 75% of the portfolio in real estate projects, which provides higher gains.

 

 

How different is the HFC REIT from the existing funds in the family?

The HFC REIT -the second in the HFC family of funds- invests in real estate activities. The first fund, the HFC Unit Trust is a short term money market fund which invests in short term securities. The HFC Equity Trust the third fund has a long term and capital appreciation objective whereas the baby fund HFC Future Plan Trust is a balanced fund which seeks long term income and capital appreciation. The HFC REIT is distinct from the rest of the funds because it is the only one that invests in landed properties.

 

How does the HFC REIT operate?

 

The fund mobilizes funds from individuals, groups, charities and corporate bodies into a big pool and invests such funds on behalf of members into the real estate sector.  The minimum initial investment is GH¢50.00 and a minimum of GH¢10.00 for subsequent additional investments.

 

 

How can I invest in the Fund?

 

The fund is open to the general public, that is to say, all individuals and institutions who can afford the required minimum contributions may purchase units.  Parents can invest in trust for their children or minors; furthermore investments can be made in trust for others.

 

 

What are the investments methods?

  • Cash payments at any of the HFC Bank Branches
  • Cheques can also be made payable to HFC REIT
  • Clients can institute standing orders with their bankers for monthly investments.  For clients with HFC bank accounts, no transfer fee will be charged
  • Clients can issue post dated cheques
  • Wire transfer can be initiated at any bank.  Ask for details at the 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 objectives stated in the trust deed. Unit holders do not have direct ownership of the individual securities purchased by the fund but rather are part owners of the HFC-REIT.

 

 

Are there any risks associated with the fund?

 

As with any investment, the fund may be exposed to Market risk and interest rate risk.  Investors are to note that the yield on their investments is not guaranteed and can rise or fall.

 

 

What type of returns can I make from the investments?

 

Members of the fund will receive both capital gains/loss and income as the total return from investing into the fund.  Capital gain/ loss is the difference between the current price of the share and the purchase price.  E.g. if you bought 100 units at GH¢1.00 and the current price is GH¢ 1.50, then the returns is GH¢0.50 difference.

 

 

Diversification

The HFC-REIT provides investment into the real estate sector. Diversification within this sector is an effective hedge against inflation in the long term. In theory, diversification of investments leads to cross cancellation of risks, an optimally balanced portfolio and the achievements of optimum returns. This advantage is however, unavailable to the majority of individual investors, as it requires a large capital outlay. By pooling resources in the trust, REIT holders achieve this advantage.

 

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.  Client statements will be mailed out semi-annually or as requested.

 

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

Visit the office of HFC Investments or any branch of HFC Bank and complete a redemption form. Submit the form when duly signed. The manager is obliged to redeem the units and make payments for them within a maximum of five working days at a prevailing price on the actual day of disinvestments as displayed by the manager.

 

Experienced and Skilled Fund Managers

HFC Investments is a premier collective investments scheme manager in the country. The company has been in the fund management business since 1991, and thus has the infrastructure and experience to manage any fund.

 

Who are the regulators of the Fund Authorizing Institution?

The HFC-REIT was established under the companies’ code, 1963 (Act 179).  The scheme was authorized by the Registrar General Department under the terms of section 318 of the Companies’ Code.  Following the promulgation of the Securities Industry Law, 1993 (PNDC Law, 333), the operation and regulation of the HFC REIT have been placed under the supervision of the Securities and Exchange Commission (SEC) Ghana.

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 a prevailing price on the actual day of disinvestments as displayed by the manager.

 

 

Trustees

Universal Merchant Bank (UMB, formerly Merchant Bank (Gh.) Ltd) is the trustee of the fund. It is the trustee's responsibility to ensure that the HFC REIT is managed effectively for the benefit of the unit holders.

 

Auditors

Pannel Kerr Forster (PKF Ghana), a firm of reputable chartered accountants, audits the fund.

 

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