UTT Brochure No. 2 (English) - UTT Asset Management and Investor

Public Information Brochure
PUBLIC INFORMATION BROCHURE NO. 2
Basic Information on
Umoja Fund
May, 2005
Public Information Brochure
INTRODUCTION
UMOJA FUND is established as a pioneer empowerment Collective Investment Scheme
that gives an opportunity for the majority of Tanzanian citizens to invest, take a stake in
privatization, further participate in the capital markets and obtain a return on their investment. It is the first Collective Investment Scheme to be established in Tanzania.
In the Public Information Brochure No. 1, various advantages of Collective Investment
Scheme were pointed out. These include pooling of resources, risk diversification, reduction of transaction costs, access to other investment avenues etc.
Umoja Fund is a Collective Investment Scheme also known as a Unit Trust Scheme. It
is established in compliance with the Capital Markets and Securities Act, 1994 (as
amended) and Capital Markets and Securities (Collective Investment Schemes)
Regulations, 1997.
The scheme is structured in such a way that it provides opportunities for both low and
high income resident and non-resident Tanzanian individuals as well as registered community based organizations whose beneficiaries are Tanzanians to participate in it.
BASIC FEATURES OF A UNIT TRUST SCHEME
As already pointed out, Umoja Fund will be the first Unit Trust Scheme to be established
in Tanzania. It is therefore important that the basic features of such a scheme are appreciated. In addition, there are marked differences between such a scheme and a limited liability company as well as a partnership which have been the common ways of running
businesses in the country.
COMPARED TO A LIMITED LIABILITY COMPANY
A limited liability company is usually incorporated through subscription of shareholders
in the Memorandum and Articles of Association of the company. This is registered with
the Business Registration and Licensing Agency (BRELA). After incorporation, the
company takes a legal personality that is separate from the shareholders. The company’s
property is not shareholders’ property. Such property belongs to the company. The shareholders are entitled to their rights as shareholders (including the right to dividend in the
event of profit, transfer [sale] shares, voting, capital in case of liquidation).
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The right to dividend from a limited liability company is qualified in two ways.
Dividends are distributed subject to the company obtaining a profit and dependent on the
dividend policy laid down by the Board of Directors. A Board could decide for instance
that profit be retained by the company to facilitate growth.
Secondly, in a company the Board of Directors is vested with management powers. It is
therefore the Board of Directors which appoints day to day management and directs the
affairs of the company. The Board is elected by shareholders.
COMPARED TO A PARTNERSHIP
A partnership is an agreement in which not more than twenty individuals commit themselves to contribute resources (capital) towards business and share in the profits arising
from the business. A partnership is established by a Partnership deed which spells out the
responsibilities of the partners.
It is possible that one of the partners may be engaged to manage a partnership business.
Profits arising from the business are shared out proportionately to the amount each of the
partners has contributed.
Compared to a unit trust scheme, there are certain major differences from a partnership.
The type of agreement creating the two investment vehicles is different. Although partners have a proportional ownership of a business, this ownership is not evidenced by any
“security” other than the Partnership Deed. The management structure is also different.
STRUCTURE OF A UNIT TRUST SCHEME
The structure of a Unit Trust Scheme is rather different from that of a company. A Unit
Trust Scheme is established by a Sponsor who can take over the management function
or hire a professional manager (i.e. to manage the scheme) and a custodian (or trustee)
whose main role is to take custody of the scheme’s property and ensure that the scheme
is operated in accordance with the law. The Manager and Custodian conclude a Trust
Deed (sometimes referred to as “Deed of Trust”) which is registered with the Registrar
of Trusts.
Though a Unit Trust Scheme is also incorporated as a Trust, the liability of the scheme
is attributed to the two parties who have established it. The Manager and Custodian are
liable for breaches of the Trust Deed. The Trust Deed spells out the duties of each of the
parties. The Deed is a legal document (a contract) which is enforceable in the Courts of
Law.
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The most striking difference between a limited liability company and a Unit Trust
Scheme is that of the nature of ownership of scheme’s property. The property of a Unit
Trust Scheme belongs to the unit holders. They own the property proportionately to the
units that they hold in the scheme (whereas the company property belongs to the company and not the shareholders).
Upon establishment, a Unit Trust Scheme is supposed to be operated in accordance with
the law cited above. The structure of Umoja Unit Trust Scheme is summarized in
Illustration-I below:
STRUCTURE OF A UNIT TRUST SCHEME
In addition to the custodian, a scheme is also legally obliged to appoint an auditor who
performs his tasks in accordance with the law. It is also interesting to note that any
investor who acquires units of a Unit Trust Scheme also becomes a party to the Trust
Deed as if he had signed it. In this way an investor is enabled to enforce the Deed. This
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is important because questions may be raised as to how a unit holder may enforce his/her
rights vis a vis the Manager and Custodian. That is why a Trust Deed is one of the documents legally required to be available for inspection by potential investors of a scheme.
GOVERNMENT SUPPORT FOR UMOJA FUND
As part of its economic empowerment policy, Government of the United Republic of
Tanzania established the Unit Trust of Tanzania and vested it with shares of different
companies with a view to facilitate the wider ownership of those shares among the
Tanzanian community and developing a savings culture. Government has therefore supported the establishment of Umoja Fund in the following ways;
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Establishment of the Unit Trust of Tanzania;
Provision of seed capital for Umoja Fund;
Allowing a discount on the initial price of Umoja Fund units; and
Promoting the establishment of Umoja Fund.
SEED CAPITAL FOR UMOJA FUND
As seed capital for Umoja Fund, Government has accepted to allocate 2% of the shares
of Tanzania Breweries Ltd. and 1% of the shares of Tanzania Cigarette Company Ltd.
The total value of these shares as at 21/02/2005 amounts to TShs 9,920,012,800/=.
DISCOUNT TO CITIZENS OF TANZANIA
In addition to allocating shares to the Umoja Fund, Government has also approved a discount of 30% on the initial value of Umoja Fund units. The initial value of the units will
be TShs.100/= per unit. However, in view of the discount of 30%, the units will be sold
at a price of TShs.70/= per unit. The discount has been offered for two main objectives;
(1) to allow a large number of Tanzanians citizens to participate further in privatization
of public enterprises and (2) to inculcate a savings cult even among Tanzanians who
have low disposable income. The minimum number of units to be bought during the
Initial Public Offer is 50 and therefore one is assured entry in to the scheme with a minimum of TShs. 3500/=. There is no limit with regard to the maximum number of units
to be acquired. However all applications will be reviewed by the Manager in relation to
objectives of the scheme and allotment will be based upon criteria that will be approved
by the Authority.
In order to ensure that the discount is applied to citizens of Tanzania only, the following
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entities are eligible to invest during the Initial Public Offer (IPO) of the scheme;
(a)An adult resident or non-resident citizen of Tanzania.
(b)A parent or lawful guardian on behalf of a resident or non-resident Tanzanian
citizen who is a minor.
(c)A body corporate incorporated in Tanzania in which non-citizen individuals or
companies incorporated outside Tanzania do not hold any equity;
(d)A pension or social security fund incorporated in Tanzania;
(e)Registered cooperative societies, charitable or religious trusts, and other
community based groups as well as investment clubs.
Banks and Financial Institutions licensed under the Banking and Financial Institutions
Act, 1991 are not allowed to acquire units through IPO.
Non citizens and any other investors who do not fall under the above –mentioned
categories may invest in the scheme after the lock-in period.
INVESTMENT POLICY OF UMOJA FUND
Umoja Fund is an investment vehicle. The resources which will be in the fund at any particular time will therefore be investible. One of the functions of the Manager of the
scheme (i.e. the Unit Trust of Tanzania) is to invest those resources in the interest of unit
holders.
As earlier mentioned, Government has already allocated certain shares to Umoja Fund.
Investment will also be made in Government instruments of various maturities, corporate bonds, deposit accounts and other shares listed at the Dar es Salaam Stock
Exchange, provided that the amount invested in this market segment shall not exceed
30% of the total investments of the scheme. The profile of the scheme’s investment is
therefore a balanced portfolio. As Umoja Fund is an open-ended fund, the Manager of
the scheme shall keep adequate liquid funds in anticipation of calls for re-purchase.
The initial property of Umoja Fund will therefore take the form indicated in Illustration
II as under. The source of funding as well as resultant investment portfolio is indicated
in this illustration
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ILLUSTRATION II
INITIAL INTEREST IN THE PROPERTY OF UMOJA FUND
INVESTMENT OPTIONS OPEN FOR INVESTORS OF UMOJA FUND
Umoja Fund offers two main options aimed at serving various investment objectives
suitable for investors of different profiles. The scheme offers; an income option and reinvestment option as follows;
1. INCOME OPTION
In this option, provision is made for payment (distribution) of income. This is similar to
the commonly known payment of dividend by companies.
2. RE-INVESTMENT (CUMULATION) OPTION
In this option, no income distribution will normally be paid and instead, income will be
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ploughed back and additional units shall be issued to the investor, the number of units
being calculated by dividing the income entitlement to the respective Net Asset Value of
the unit at the time of the income distribution. This option is recommended for young
investors who have the opportunity to build up their portfolio for future needs.
Note: Unit holders under the scheme are permitted to change-over from income option
to re-investment option of the scheme or vice versa, at such periodicity and on such dates
as may be decided by the Unit Trust of Tanzania from time to time. Partial change-over
will also be permitted after the lock–in period. Applications for change-over are to be
made in a special “Request for Change-over” Form. This option offers further flexibility for the investors. The change over option shall be carried out at no extra cost to the
unit holder.
RISKS OF INVESTING IN UMOJA FUND
Investors are advised that investments in the scheme are subject to market risks and the
value of the scheme may go up or down depending upon the factors and forces affecting
the securities market. Past performance of any security acquired by the scheme is not
necessarily indicative of the future.
Investors should be aware of inter alia that;
• The performance of companies whose ordinary shares are acquired and held by the
scheme may improve or deteriorate;
• Apart from the government securities, other bonds issued by private sector
companies may be a subject of default in debt servicing;
• Interest rate changes may affect the value of fixed income securities in which the
scheme has invested;
• Changes in exchange rates may affect the value of the Scheme’s investments in
foreign currency, denominated securities;
• The taxation regime of units may change thereby affecting the income of the
scheme as well as income distribution.
• Other unforeseen factors may affect investment in which Umoja Fund has
invested and therefore the value of Umoja Fund units.
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• Changes in liquidity at the Dar es Salaam Stock Exchange where some of the
securities held by the scheme are listed may affect the valuation of such securities
thereby affecting the value of Umoja Fund units.
A SNAPSHOT OF UMOJA FUND OPERATIONS
As already explained, the shares provided by government as seed capital and funds
obtained from the public shall be invested in a portfolio of securities. The following
sequence of activities is depicted in Illustration III which provides a snapshot of Umoja
Fund operations.
Stage 1:
From the portfolio, the scheme will earn dividend and interest;
Stage 2:
The dividend and interest is re-invested until income distribution time
(date) when compulsory charges are deducted;
Stage 3:
After deduction of compulsory charges, the amount remaining is credited
to an Income Distribution Account;
Stage 4:
Part of the income may be re-invested if it is deemed to be in the interest
of unit holders;
Stage 5:
Income is distributed depending on the investors’ options;
a) Those who have opted for Re-investment option are issued additional
units.
b) Those who have opted for Income option are paid cash.
Stage 6:
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As Umoja Fund is an open-ended fund, investors may sell their units back
to the fund or buy some more units from the fund after the lock-in period
of one year.
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ILLUSTRATION III
ACQUISITION OF UNITS
WHEN CAN ONE BUY UMOJA FUND UNITS ?
There are two ways in which units of Umoja Fund may be acquired. Units may be
acquired during the Initial Public Offer (i.e. from 16th May to 29th July, 2005) thereby
taking advantage of the 30% discount. They may also be acquired continuously after a
lock-in period of one year ending on 31st July, 2006. This is because Umoja Fund is an
“open-ended” fund allowing investors to sell their units back to the Unit Trust of
Tanzania and buy them back again when they have extra money for investment.
After the lock-in period, units may be bought (on business days) throughout the year
except during the period of book closure which is not expected to exceed seven days at
a time.
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Please Note: While this brochure explains the features of the Umoja Fund, investors
must refer to the ‘Offer Document’ before making any investment in the scheme so that
it is an ‘informed decision’. For all purposes the ‘Offer Document’ of the Umoja Fund
constitutes the comprehensive document of the Offer for Sale of units in Umoja Fund.
The Offer document would be available at the offices of UTT/Collecting Agents and
licensed dealing members of the Dar es Salaam Stock Exchange.
WHERE CAN ONE BUY UMOJA FUND UNITS ?
1. Sale of Units During the Initial Public Offer
Applications for initial sale of units (i.e. during the Initial Public Offer) may be tendered
at;
(a) any of the branches of the National Microfinance Bank Ltd., CRDB Bank Ltd.,
Tanzania Postal Bank Ltd, Tanzania Postal Corporation, and Akiba Commercial
Bank Ltd;
(b) the offices of the Licensed Dealing Members of the Dar es Salaam Stock
exchange;
2. Sale of Units After the Lock-in Period of One Year
Applications for subsequent sales of units may be tendered at;
(a) any of the branches of the Designated Sales Agents
(b) the offices of the Unit Trust of Tanzania.
HOW DOES ONE MAKE PAYMENT FOR PURCHASE OF UNITS?
Payment for the purchase of units during the initial and subsequent sales may be made
by cash through the above mentioned agents or banker’s cheque/draft payable to
“UMOJA Unit Trust Scheme Account”. Members of the public are cautioned that No
cash should on account of purchase of units in the scheme be deposited to any other
intermediary apart from the agents who are recognized by the Unit Trust of Tanzania.
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WHAT ARE THE RIGHTS OF UNIT HOLDERS OF UMOJA FUND?
The unit holders of Umoja Fund have the following rights;
(a)Unit holders under the scheme have a proportionate right in the beneficial ownership of the assets of the scheme and to the income declared by the scheme.
(b)Unit holders have the right to ask the Unit Trust of Tanzania any information which
may have an adverse bearing on their investments and the Unit Trust of Tanzania
shall be bound to disclose such information to the unit holders.
(c)(i) Unit holders under the scheme have a right to be mailed a summary of the
Annual Report in respect of the scheme not later than four months from the date
of closure of the accounting year. The summary shall also be made available
for inspection at the office of the Unit Trust of Tanzania and branches of the
Designated Agent.
(ii)Semi annual reports are to be mailed to unit holders not later than two months
after the period to which they relate.
(d)By accepting to invest in the scheme, certain information has been presented to
potential investors. This information includes certain fundamental attributes
(nature of scheme, investment policy etc.). Any change in the fundamental
attributes of the scheme will be carried out only if the unit holders are allowed to
exit at the applicable Net Asset Value besides being intimated by individual
communication as well as publication of intimation in an English and Swahili
newspaper of national circulation.
(e)Unit holders have the right to inspect the following documents at the offices of the
Unit Trust of Tanzania.
(i) The Capital Markets and Securities Act, 1994 (as amended)
(ii) The Capital Markets and Securities (Collective Investment Schemes)
Regulations 1997
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(iii) The Deed of Trust of the UMOJA Unit Trust Scheme which is the document
formally establishing Umoja Fund.
HOW IS OWNERSHIP OF UNITS EVIDENCED?
Units bought from the scheme are property of the unit holder. They are evidenced by a
Unit Certificate. This is a document which is akin to the share certificate of a company.
(a)All unit holders shall receive unit certificates according to their holdings in the
scheme purchased during the Initial Public Offer. However Unit Holders who
purchase units after one year lock-in period will be issued Statement of Account.
Statement of Account is like a bank account statement.
(b)On declaration of Income Distribution, Unit holders who have opted for
re-investment option will receive a Statement of Account of their holdings in the
scheme. Unit holders who have opted for income option will receive cash
HOW IS INCOME OF THE SCHEME DISTRIBUTED?
Income distribution under the scheme will be made subject to availability of distributable
income as approved by the Board of Trustees of the Unit Trust of Tanzania initially once
in a year and thereafter at such intervals as the Board may decide.
(a)A unit holder whose name is registered in the books of the scheme as on the record
date announced for the distribution of income, and who is not in the re-investment
option will be entitled to a cash income distribution.
(b)The payment of Income distribution will be made by transfer of funds to accounts
of investors previously notified to the Unit Trust of Tanzania or by issue of
Postal Money Orders.
(c)The credit to an investor’s account or dispatch of the Postal Money Order shall be
made not later than five working days from the date of the distribution.
(d)Unit holders who are under the re-investment option will not receive a
cash income distribution. Instead the income to be distributed to them, shall be
re-invested in additional units in the scheme at the applicable ex-dividend Net
Asset Value. A Statement of Account indicating additional units shall be issued to
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the unit holders within 10 working days.
CAN UNITS OF UMOJA FUND BE TRANSFERRED OR PLEDGED?
Units issued under the scheme are transferable. In the event a transfer is desirable, it may
be effected by filling of appropriate transfer forms.
The units of Umoja Fund may also be pledged or assigned.
(a)Pledge or assignment of units is permitted only in favour of banks or financial
institutions. The unit holders may pledge or assign units in favor of banks or
financial institutions as security for raising loans. Units may be pledged by
completing the Request for Pledge Form and other formalities as may be required
where upon receipt of the forms, the Unit Trust of Tanzania will record a pledge
against the units pledged.
(b)The pledgee bank or financial institution will have complete authority to redeem
or transfer such units upon evidence that the pledgor has defaulted on the
respective loan.
(c)In the case of pledged units, no re-purchase/transfer/changeover will be permitted
unless it is accompanied by a Charge Release Certificate in original issued by the
pledgee.
(d)Where an investor holds a Statement of Account and wishes to Transfer or Pledge
the respective units, the investor shall be required to first convert the Statement of
Account into Unit Certificate.
WHAT HAPPENS IN THE UNFORTUNATE EVENT OF THE DEATH OF A
UNIT HOLDER ?
In the event of death of a unit holder, the death claim shall be recorded as under:
(i) If the units were issued ‘Jointly’, the same will be issued in the name of the
surviving 2nd holder.
(ii)If the units were issued ‘Singly’ and there is nomination, the units will be issued
in the name of the Nominee as holder.
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(iii)For cases where units were issued ‘Singly’ and without any nomination, the units
will be issued in the name of the Administrator or Executor or Legal Heir (as the
case may be).
HOW IS THE SCHEME PROPERTY VALUED?
As earlier mentioned, Umoja Fund will maintain a balanced portfolio consisting of assets
of different categories. At any point in time these assets have to be valued. The scheme
property is valued as the Net Asset Value of the scheme. The Net Asset Value (NAV) of
the scheme shall be calculated by determining the value of the scheme’s assets and subtracting there-from the liabilities of the scheme taking into account the accruals and provisions. During the lock-in period the NAV shall be calculated on the weekly basis and
on the daily basis thereafter.
Apart from calculating the total value of the scheme, the value of individual units may
also be calculated. The NAV per unit is calculated by dividing the NAV of the scheme by
the total number of units issued and outstanding on the date of calculation.
No doubt, calculation of the value of the property of the scheme i.e. valuation is a professional and complex issue, the guiding factor however is that the valuation is to be
done taking into account the values recognized in the market.
In order for members of the public (investors and potential investors) to know the value
of the scheme as well as the value of their units in the scheme, the NAV of Umoja Fund
shall be issued to the press for publication on every Friday of the week during the lockin period and thereafter at the end of every working day. The NAV shall be published in
some newspapers of general circulation in Tanzania. The NAV shall also be available on
the website of the Unit Trust of Tanzania.
POINTS FOR NOTING
(a)The initial value of a unit under the scheme is TShs.100/= (One hundred
Shillings).
(b)There is a “lock-in” period of one year. After the one year lock-in period, the
scheme will be in a position to sell units or re-purchase units from investors.
The sale and re-purchase prices will be based on the Net Asset Value of the scheme,
deducting there-from or adding thereon a service charge of 1% respectively.
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(c)Minimum investment during the initial sale of the units shall be for 50 Units.
(The actual payment is TShs.3,500/= instead of TShs.5,000/= due to 30 % discount
offered by the Govt.)
(d)No initial charge will be levied on an investor during the initial purchase.
(e)Subsequent sales (i.e. after the Lock-in period) shall be in multiples of ten units.
(f) A unit holder with an outstanding balance of ten units continues in the scheme with
the existing holding. If a unit holder tenders the units for re-purchase thereby
reducing the outstanding investment to less than ten units, all units have to be
re-purchased.
(g)The contract for sale of units by the Unit Trust of Tanzania shall be deemed to have
been concluded on the “date of acceptance” except in cases where an application
is rejected by the Unit Trust of Tanzania.
(h)Sales and re-purchases will be open on every working day except for the lock-in
period and during the book closure periods as may be announced by the Unit Trust
of Tanzania from time to time.
(i) In respect of all applications for sale or repurchase of units received and accepted
at the offices of the Unit Trust of Tanzania after 12.00 Noon, they will be governed
by the Net Asset Value of the next working day.
(j) Re-purchase will be effected on receipt of the unit certificate along with the
Re-purchase Request Form or such other document as may be prescribed by the
Unit Trust of Tanzania from time to time duly completed in all respects.
(k)Payment for re-purchase proceeds shall be dispatched within five working days
from the date of acceptance of an application by the Unit Trust of Tanzania duly
completed in all respects.
(l) Partial re-purchases are permitted subject to the unit holder maintaining a
minimum balance of ten units. Repurchases shall also be made in multiples of ten
units.
(m)No interest shall on any account be payable on the amount of re-purchase
proceeds due to an applicant for re-purchase of units.
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(n)Not withstanding anything contained in any provision of the scheme, the Unit
Trust of Tanzania is not under any obligation to;
a. Sell / re-purchase units during the lock-in period ending on 31st July, 2006.
b. Sell or repurchase units on such days as the offices of the Unit Trust of Tanzania
will be closed.
c. During the book closure period not exceeding seven working days at a time or
such other period in a year as may be decided by the Unit Trust of Tanzania
when the register of the scheme is closed for any purpose as notified by the Unit
Trust of Tanzania.
TAXATION
Taxation is an important part of an investment activity. It is therefore important for
investors in Umoja Fund to be acquainted with some relevant taxation aspects. However,
the information provided in this brochure is only for purposes of providing general information to unit holders. In view of the individual nature of tax consequences, it is advised
that interested investors should consult their own legal or tax adviser with respect to specific tax implications arising out of their participation in the scheme.
As per taxation laws in force on the date of this offer document, the tax implications of
the scheme are as follows;
• Income of the scheme is taxable at the usual corporate tax rate.
• Income from dividends of listed companies whose shares are held by the scheme
is taxable at 5% instead of the usual rate of 10%.
• Income distribution in the hands of investors is tax exempt.
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BIBLIOGRAPHY OF WORDS
Collecting Agents
These are institutions which during the initial sale of units issue application forms, assist
investors with filling the forms and collect the purchase proceeds for onward transmission to the Unit Trust of Tanzania.
Re-investment (Cummulation) option
One option which investors have so that instead of receiving a cash income distribution
(like dividend) additional units are issued to them at the prevailing Net Asset Value.
Discount
This is a sum of money which is deducted from the initial value of units of the scheme
during the initial sale.
Initial Public offer (IPO)
The sale of units or shares by a unit trust scheme or limited liability company for the first
time.
Initial Sale
This is the same as the Initial Public offer. However, it is used to contrast this exercise
from the subsequent sale of units which in the case of Umoja Fund shall take place after
the lock-in period of one year.
Investment Portfolio
This is a composition of financial securities/assets in which Umoja Fund will invest.
Lock-in period
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This is the period of one year ending on 31st July, 2006 during which sale and re-purchase operations will not be carried out by the scheme.
Net Asset Value
This is the value arrived at after taking the value of the scheme’s assets and subtracting
there-from the liabilities of the scheme taking into account the accruals and provisions.
Postal Money Order
A payment instrument issued by the Tanzania Postal Corporation entitling the person
named therein as payee for the ascertained amount of money.
Re-purchase
This is the purchase by the scheme from unit holders of units previously sold and held
by unit holders.
Sale
This is sale of units by the scheme. It may be initial sale as in the Initial Public Offer or
subsequent sale of units after the lock-in period has expired.
Sponsor
Sponsor is the organization which sets up a scheme. In case of Umoja Fund, the sponsor is the Unit Trust of Tanzania.
Statement of Account
This is a special accounting advise issued by the scheme to a unit holder indicating the
number of units held by a unit holder in the scheme. It is like a bank account statement
which shows the balances in the account of a bank client.
Subsequent Sale
As explained above, this is the sale of units under the scheme after the lock-in period.
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Trust deed
This is a document evidencing the registration of a trust in this case – the Umoja Unit
Trust Scheme. The trust deed provides for the establishment of a unit trust, the responsibilities (duties) of the parties, rights of unit holders etc. The deed is initially concluded
by the Manager and Custodian. Every unit holder becomes a party to the trust deed even
though he had not initially signed it.
Unit(s)
This is a unit issued under the scheme representing a proportional right in the beneficial
ownership of the assets and income of the scheme. It is like a share in a company
although the rights of a shareholder somehow differ from the rights of a unit holder as
explained in this brochure.
Unit Certificate
This is a certificate issued to a unit holder evidencing the ownership of the units. Once
again, it is like the share certificate of a company.
Unit holder
Is a person or body corporate recognized by the scheme as a bona fide holder of units in
the scheme.
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