PRODUCT OF THE WEEK: Turn your aspirations into success stories with the  SBG Securities’ Wezimbe Unit Trust  Not everybody was born an investor or was born to do business, yet business remains one of the best ways to grow money. Doing business also comes with certain risks, especially for the inexperienced. To meaningfully invest, one must also be able to raise a certain minimum amount of money. One must also be able to invest a good amount of time in the business to make it work. To solve these challenges, SBG Securities Uganda an investment house and brokerage firm of Stanbic Holdings has launched Wezimbe Unit Trust. Wezimbe Unit Trust enables investors with as little as UGX100,000 to start flexibly investing in a wide range of securities e.g. shares, treasury bonds, and treasury bills. Joram Ongura the SBG Securities' Chief Executive, tells CEO East Africa Magazine all about the new product and why it is worth a try.

What is the Wezimbe Unit Trust? 

Wezimbe Unit Trust is an investment product that enables you to pool your money together with other investors to create a large fund. This Fund is managed by a professional Unit Trust Manager who invests in a wide range of securities e.g. Shares, Treasury bonds, Treasury bills etc) to get a favourable return on your investment. 

Does it offer a fixed rate of return on your investment? 

No, the rate of return on your investment depends on the trends in the investment environment and financial markets. The likelihood of no return on investment is low. 

What benefits should I expect from the Wezimbe Unit Trust? 

• Earn interest daily 
• Flexibility (Ability to make top-ups and redemptions without incurring penalties) 
• Convenience (Access to money, ease of transaction and simplicity) 
• Transparency (Real-time visibility of account status) 

What funds are available for me with the Wezimbe Unit Trust? 

• SBGS Money Market Fund: For investors with a short-term savings goal seeking a competitive yield.
• SBGS Balanced Fund: For investors saving for a long-term goal (more than 3 years) 
• SBGS Bond Fund: For investors saving for medium to long-term goal (2 years) 

How do I start investing with the Wezimbe Unit Trust? 

Fill out a sign-up form with your KYC details or log onto the portal via www.sbgsecurities.co.ug and upload a copy of a passport-size photo, National ID (for Ugandans) or Passport (for foreigners). You will receive a confirmation SMS/Email with your corresponding Account Number 

How do I make additional cash investments towards my Wezimbe Unit Trust Fund?

By making a direct transfer to the bank account of the Unit Trust Fund of your choice (i.e. Money Market Fund, Balanced Fund or Bond Fund). Ensure to quote your name and Unit Trust Account number as your narration. 

What’s the minimum initial amount that can be invested? 

You can start from as low as UGX 100,000 with a minimum subsequent amount of UGX 50,000. 

Can I invest for my children, with my partner and my investment club? 

Yes, its possible to invest for minors, jointly with your partner and savings group. 

• How to open a Minor Account: To open an account, attach the parent’s National ID, the child’s birth certificate, and passport-size photographs of the parent and the child and submit to sbginvest@stanbic.com. 
• How to open a Joint Account: Complete the sign-up form as the individuals interested in opening a joint account, if the portal was used and separate accounts were opened, a request to merge the two accounts should be shared to sbginvest@stanbic.com. Attach both individuals’ National IDs (for locals)/passports for foreigners, and passport-size photographs for both individuals. 
• How to open a Corporate Account (SACCOs, Investment Clubs, Companies): Complete forms and sign up using the SBG Invest web portal via our website sbgsecurities.co.ug. Attach Certificate of Incorporation (for companies), a certified copy of the Constitution (for SACCOs & Investment Clubs), Certified Resolution, Passport sized photographs and National IDs for the signatories. 

How will I monitor my investments? 

In addition to a monthly statement, daily prices will be accessed via our Online Portal (SBG Invest) accessible through our website. You can also monitor the performance of your investment using the SBG Invest Online portal. 

Do I have control over what the Unit Trust invests in? 

No, the Unit Trust Manager, SBG Securities Uganda Ltd makes all investment decisions based on the guidelines in the Fund’s Trust Deed. 

How do I redeem my investment? 

Fill out a Redemption Form and send it to SBG Securities or initiate redemption of funds via the SBG Invest portal on sbgsecurities.co.ug. Redemptions will be processed within 48 hours. 

Are there any penalties for withdrawing funds from the Wezimbe Unit Trust? No, there are no penalties incurred for redeeming your funds from the trust. 

What are some of the risks to expect with the Wezimbe Unit Trust? 

Income Risk: The risk that the Fund’s income will decline because of falling interest rates. As a Unit Trust Manager, SBG moderates Income Risk by investing pooled funds in medium to long-term bonds. 

Credit Risk: The risk that a bond issuer (for example Government for Treasury Bonds) will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. Credit Risk is mitigated by SBG, the Unit Trust Manager, by investing in only bonds that are of investment-grade quality. 

Liquidity Risk: This refers to the difficulty to redeem an investment without incurring a loss in the value of the investment. SBGS has established a liquidity management policy which enables it to identify, monitor and manage liquidity risks. This policy ensures that the Fund is able to meet redemption requests as they fall due.