Enwealth Dollar Money Market Fund

Objective

The object of the Enwealth Dollar Money Market Fund is to provide a medium whereby investors who prefer USD denominated investments with a short term-medium horizon can obtain undivided participation in a diversified portfolio of securities in the Kenyan markets and offshore.

This Fund offers preservation of US Dollar denominated capital and accessibility over the short term by generating passive level of income higher than returns in a US Dollar denominated bank account.

Purpose for the Fund

Ideal as a vehicle for short-term USD denominated investments
Aims to achieve a competitive interest rate return
Attractive alternative to savings and deposit accounts
Suitable for investors who seek USD capital preservation with minimal volatility
Suitable for investors that seek to hedge themselves from the Forex volatility.
Investment opportunity to investors who wish to have exposure to the USD denominated investments.

Investment Principles

To invest in instruments issued by institutions of repute;
To manager and administer the portfolio according to best practice, treating the generation of income as a higher priority than capital growth or as the case may be to place equal emphasis on the generation of income and on capital growth and that (in either case) this may accordingly constrain capital growth;
To minimize losses, while maximizing on investment returns, by investing in near cash or cash deposits;

Permissible assets

The Enwealth Dollar Money Market Fund will predominantly invest its assets in USD denominated underlying securities in the Kenyan investment markets and/or offshore money market investments at all times and will be permitted to make investments in a mix of money market securities; to the maximum permitted by the Act, and any other securities, which may be included in a portfolio in terms of the Act and relevant legislation, which are consistent with the portfolio’s investment policy.

Fund Features

Investment Attribute	Description
Return	Interest income declared daily, credited to client account monthly. Net of all charges
Risk	Low Risk. Maximum security on Principal Investment
Liquidity	Liquidations paid within 30 days
Preferred Investment tenure	Below 12 months
Taxation	Withholding Tax on interest income charged to the fund
Regulated	Yes. by the Capital Markets Authority
Suitability	Suitable for investors with: Low risk appetite low liquidity needs
Unit price	Based on daily NAV per share
Charges	No preliminary charges or initial fee No redemption fees
Initial Investment	USD 1,000
Minimum Monthly Top-Up	USD 500
Minimum Investment Period	3 Months
Pricing Frequency	Based on daily NAV per unit

Pricing and Distribution

A distribution for the Enwealth Dollar Money Market Fund shall comprise interest. Interest is received from liquid assets in the portfolio such as dollar denominated fixed- income securities.

Distribution Frequency

Distributions for Enwealth Dollar Money Market Fund will be made daily and credited to client portfolio accounts on the last day of the month.

Distribution Policy

Details of the distribution arising from interest will be shown on monthly distribution statements to unit holders.
All income arising from receipts of interest will be distributed to unit holders after provision for expenses net of tax.
All distributions including unclaimed distributions will be reinvested in the unit trust holder’s account.

Interest on the Enwealth Dollar Money Market Fund

As there is no fixed investment period in the Fund, there is no guaranteed interest rate for any given period of investment. Interest is accrued on a daily basis, and credited to the unit trust account monthly. Effective Annual Rate can be found daily in the local newspaper or on the fund manager’s website.

Disclaimer

There are no guarantees on the client’s capital as the performance of units and interest- bearing investments in the underlying unit trust determines the value of the unit holders in the Fund.
The yield of units can go down as well as up as a result of changes in the value of the underlying investments.
Past performance should not be used as a guide to future investment performance.
The investment may be held in any number of funds, combination, or proportions subject to the fund minimums. These unit trusts can be selected to suit different investment needs and they can be combined to build a diversified portfolio.
The yield of units or the price of units, and the unit’s income and distributions may vary.
In certain specified circumstances investors’ right to redeem their units may be suspended.