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  • HFC Unit Trust

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HFC Unit Trust

The HFC Unit Trust is a collective investment scheme whose main objective is to invest mobilized funds in short-term money market securities. The HFC Unit Trust has a dual objective - short-term income and capital preservation. To obtain its high-income goal, the Fund invests in portfolio of money and capital market instruments from different institutions. The main instruments that the fund invests in are Bonds, Debentures, Fixed Deposits, Treasury Instruments and Commercial Paper. The Fund is open to the general public that is all individuals and institutions who can afford the required minimum contributions.  Parents/ Guardians can also invest in trust for their children and dependants. Transactions can be made through all HFC Bank branches.

Read Our Unit Trust FAQs below

What is HFC Unit Trust?

The HFC Unit Trust is a collective investment scheme whose main objective is to invest mobilized funds into short-term money market securities. It was set up in 1991 by the HFC Bank Ghana Limited as the first collective investment scheme in Ghana. It is currently part of a family of funds managed by HFC Investments, a wholly owned subsidiary of the Bank.

The Fund’s Investment Objectives:

  • The HFC Unit Trust has dual objective: short-term income and capital preservation.
  • Investment Strategy and Portfolio Structure:
    • To obtain its high-income goal, the Fund invests in a portfolio of money and capital market instruments from different institutions. The main instruments are Bonds, Debentures, Fixed Deposits, Treasury Instruments and Commercial Paper.
    • Capital appreciation is achieved by investing up to 10% of the portfolio in Equity and other funds.
 

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

The existing funds are the HFC Equity Trust, HFC Future Plan Trust and the HFC REIT (Real Estate Investment Trust). The HFC Equity Trust invests mainly in listed shares on the Ghana Stock Exchange. The HFC Future Plan Trust invests mobilized funds into both listed stocks on the GSE and money market instruments, while the HFC REIT invests directly in the real estate sector.

 

How does the HFC Unit Trust operate?

The Fund mobilizes savings from individuals, groups, churches, charities and corporate bodies into a big pool and invests such funds on behalf of members. The minimum initial investment is GH¢20.00 and a minimum of GH¢5.00 for subsequent additional investment.

 

How can I invest in the Fund?

The Fund is open to the general public, that is, all individuals and institutions, who can afford the required minimum contributions, may purchase units in the funds. Parents / Guardians can also invest in trust for their children and dependants. Transactions can be made through all HFC Bank branches. Alternatively, call us on our hotlines: 0302 664430/664214.

 

What are the investment methods?

  • Cash payments at any of the HFC Bank branches;
  • Cheques can also be made payable to HFC Unit Trust;
  • Clients can institute Standing Orders with their bankers for monthly investments. For clients with HFC Bank accounts, no transfer fees will be charged;
  • Clients can issue postdated cheques;
  • Wire transfers can be initiated at any bank branch locally and internationally. Ask for details at any 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. Also, unit holders do not have direct ownership of the individual securities purchased by the fund but rather become part owners of the HFC Unit Trust.

 

What type of returns can I make from my investments?

Members of the Fund will receive both capital gains/loss and income as the total return from investing in the fund. Capital gains/loss is the difference between the current market price of the shares and the purchase price. E.g. if you bought a unit at GH¢100.00 and the current price is GH¢200.00, then the return is the GH¢100.00 difference.

Investors are to note that the yield on their investments is not guaranteed and can 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 or on this website. Additional information will also be provided in the annual reports on the fund. Client statements can be requested for by phone calls or contact with the offices of the Manager.

 

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

Complete a redemption form and submit duly signed. The Manager is obliged to redeem the units and make payments for them within a maximum of five working days with respect to the HFC Unit Trust at the prevailing bid price on the actual day of disinvestments as displayed by the Manager. Withdrawal of funds from the scheme is allowed one week after the initial investment.

 

Who are the Regulators of the Fund Authorizing Institution?

The HFC Unit 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 Unit Trust have been placed under the supervision of the Securities and Exchange Commission (SEC), Ghana.

Trustees:

Merban Investment Holding Limited, a subsidiary of Merchant Bank (Ghana) Limited is the Trustee of the Fund. It is the Trustees responsibility to ensure that the HFC Unit Trust 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 from investing in the HFC Unit Trust?

The following are some of the benefits you obtain by investing in the HFC Unit Trust:

  • Good Corporate Governance: HFC Group is a listed company on the Ghana Stock Exchange with a wide shareholder base. This provides a form of security for your funds. The confidence of having access to your fund at anytime lowers default risk.
  • Access to Banking Services: The HFC Unit Trust is one of the funds in Ghana that is backed by a bank.  HFC Bank being part of a group will provide you access to all the banking services that it provides to its customers. Cheques issued for redemption of units can be cashed on the same premises and same day.
  • Experienced and Skilled Fund Managers: HFC Investments is the premier collective investment 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 effectively.  The manager of this fund currently manages three other funds (HFC Equity Trust, HFC Future Plan Trust and HFC REIT) and this can assist in the diversification of investment objectives.
  • Diversification: The Trust invests in a wide range of financial securities across the spectrum of the economy. This diversity lowers the risk of the portfolio, whilst maximizing the returns. In theory, diversification of investments leads to cross-cancellation of risks, an optimally balanced portfolio and the achievement of optimum returns. This position is however, unavailable to the majority of individual investors, as it requires a large capital outlay. By pooling resources in the Trust, unit holders achieve this advantage.
  • Liquidity and Flexibility: The Manager of HFC Unit Trust is obliged to buy-back units on demand of the unit holders, thus providing substantial liquidity to investors.

Other advantages include:

  • Low operating costs
  • Transparency
  • Taxation exemptions
  • No exit charges
 

Are there any Risks Associated with the Fund?

As with any investment the fund may be exposed to Market Risk and Interest Rate Risk.

 

Are there any charges associated with the Fund?

HFC Investments manages the HFC Unit Trust for a fee agreed under the Trust Deed. The Manager is paid a Management Fee at the rate of 2% of the Fund Value. However, this is not cost borne directly by the customer. The manager also charges an initial fee of 1% that is a front end fee on the spread between the Offer and Bid prices.

 

Account Log-in

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

Prices (December 5, 2017)

  • HFC REIT

  • UNIT TRUST

  • EQUITY TRUST

  • F PLAN

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

3.1548

3.1399

13.20

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

0.5001

0.5051

20.44

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

0.6829

0.6829

28.85

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

2.4018

2.4018

21.95