Balanced Fund

Designed to provide investors with a balance of growth and income

Introduction

The Chuuma Balanced Fund is a diversified investment option designed to provide investors with a balance of growth and income. It is a unit trust fund managed by Chuuma Asset Management Limited, a company duly incorporated and registered under the laws of Zambia and regulated by the Securities and Exchange Commission of Zambia (SEC). The fund aims to provide a blend of capital appreciation and income generation by investing in a mix of asset classes. The fund is designed for investors seeking a balance of risk and return. Chuuma’s mission is to democratize investing and empower individuals by providing accessible and user-friendly investment opportunities.

Investment Objective

The primary investment objective of the Chuuma Balanced Fund is to achieve long-term capital growth while generating a steady stream of income. The fund seeks to provide a balance between risk and return by investing in a mix of equities, fixed-income securities, and other assets. The fund is designed for investors who are looking for a diversified investment option with a moderate level of risk.

Investment Strategy

The Chuuma Balanced Fund will employ a diversified investment strategy, investing in a mix of asset classes to achieve its investment objective. The fund will invest in the following:

• Equities: The fund will invest in a diversified portfolio of stocks listed on the Lusaka Stock Exchange (LuSE) to provide capital appreciation.

• Fixed Income Securities: The fund will invest in government and corporate bonds to provide a steady stream of income.

• Money Market Instruments: The fund may invest in short-term money market instruments to provide liquidity and manage risk.

• Other Assets: The fund may invest in other asset classes as deemed appropriate by the fund manager.

The specific allocation to each asset class will be determined by the fund manager based on market conditions and investment opportunities, with the goal of balancing risk and return. Chuuma’s investment decisions and portfolio monitoring will take into account key risks.

Target Investors

The Chuuma Balanced Fund is suitable for investors with a moderate risk tolerance who are seeking a balance of growth and income. The fund is appropriate for investors who:

• Are seeking a diversified investment option.

• Desire a mix of capital appreciation and income generation.

• Have a medium to long-term investment horizon.

• Are comfortable with a moderate level of risk.

Fees and Charges

The following fees and charges apply to the Chuuma Balanced Fund:

• Management Fee: An annual management fee of 4.5% of assets under management (AUM). This fee is calculated daily and deducted quarterly.

• Transaction Fees: While some transactions on Chuuma are free, some transactions do carry a fee. Investment and redemption fees may be levied on clients depending on the external and internal business environment.

• Other Charges: Normal SMS charges or other charges for services may be applied by mobile operators for each SMS sent to Chuuma or for other services. These charges are in addition to any applicable stipulated fees charged by Chuuma.

Chuuma reserves the right to change service charges from time to time.

How to Invest

Investors can purchase units in the Chuuma Balanced Fund through the Chuuma mobile app or USSD platform.

• Registration: New investors must first register on the Chuuma platform by providing required personal and financial details.

• KYC and Verification: Chuuma implements robust Know Your Customer (KYC) and Customer Due Diligence (CDD) procedures to verify client identity.

• Investment: Once registered, clients can purchase units in the fund using their mobile money account or linked bank accounts.

Clients will receive confirmation of the amount invested and the number of units held.

Redemption of Units

Investors can redeem their units in the Chuuma Balanced Fund after a minimum holding period of 91 days.

• Redemption requests can be made through the Chuuma mobile app or USSD platform.

• Redeemed funds will be credited to the investor’s account within 48 hours of the transaction being completed.

• Redemptions will be subject to transactional limits and fees.

• Every redemption of units authorized by the investor will be credited to their account and accompanied by communication indicating the amount withdrawn and the units in the Fund will be adjusted accordingly.

• Investors cannot directly reverse or cancel any redemption transaction once authorized.

Risk Factors

Investing in the Chuuma Balanced Fund involves certain risks, including but not limited to:

• Market Risk: The value of the fund may fluctuate based on market conditions.

• Credit Risk: The fund is exposed to the risk of issuers defaulting on their obligations.

• Liquidity Risk: The risk that some securities may not be easily sold at their real values.

• Interest Rate Risk: The risk that changes in interest rates may affect the value of fixed-income securities.

• Inflation Risk: The risk that inflation may erode the real value of investment returns.

• Concentration Risk: The risk that the fund may be exposed to increased losses due to a concentration in a particular asset, sector, or region.

• Operational Risk: This is the risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events.

• Regulatory Risk: The risk that changes in laws and regulations may affect the fund’s performance.

Disclaimer:

• Past Performance: Past performance is not indicative of future results.

• No Guarantee: Returns on investment into the unit trust are not guaranteed and depend on the overall performance of the fund.

• Due Diligence: Investors should carefully review the fund’s risk factors, investment objectives, and terms and conditions before investing.

Fund Management

The Chuuma Balanced Fund is managed by a team of experienced professionals at Chuuma Asset Management Limited. The team has expertise in finance, technology, risk management, and customer service. The company is committed to ethical conduct, transparency, and maintaining the trust of its clients and stakeholders.

Compliance and Regulation

Chuuma adheres to all applicable laws and regulations in Zambia and aims to provide the regulator with an online dashboard for transparent monitoring. Chuuma is committed to compliance, adhering to all applicable laws and regulations. The company has a comprehensive compliance and Anti-Money Laundering (AML) framework. Chuuma also has a comprehensive privacy policy that outlines how client data is collected, used, and stored.

Contact Information

Chuuma Asset Management 6th Floor, ZEP-RE Business Park Alick Nkhata Road Lusaka, Zambia Email: [e-mail] Website: www.chuuma.com Phone: [phone] Customer Support Email: [e-mail]

Additional Information

• Chuuma’s goal is to be extremely compliant.

• Chuuma has a robust Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) program in place.

• Chuuma has implemented robust cybersecurity measures, such as firewalls, intrusion detection systems, and regular security audits.

• Chuuma offers educational resources to help clients understand the market and make informed choices.

Review and Updates

This prospectus will be reviewed and updated as needed to reflect changes in the fund’s investment strategy, market conditions, or regulatory landscape.

This prospectus provides a general overview of the Chuuma Balanced Fund and is not a substitute for professional financial advice. Investors should consult with a financial advisor before making any investment decisions.