Equity Growth Fund

Designed for investors seeking capital appreciation through investments in a diversified portfolio of Zambian stocks

Introduction

The Chuuma Equity Growth Fund 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 is designed for investors seeking capital appreciation through investments in a diversified portfolio of Zambian stocks. 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 Equity Growth Fund is to achieve long-term capital growth by investing in a diversified portfolio of equity securities listed on the Lusaka Stock Exchange (LuSE). The fund aims to provide investors with the opportunity to participate in the growth of Zambian companies through diversified stock investments.

Investment Strategy

The Chuuma Equity Growth Fund will primarily invest in a diversified portfolio of stocks listed on the Lusaka Stock Exchange (LuSE). The fund’s strategy will focus on:

• Identifying companies with strong growth potential, sound financial fundamentals, and good management.

• Diversifying investments across different sectors of the Zambian economy to reduce risk.

• Employing a long-term investment approach, with a focus on holding securities for an extended period to realize capital gains.

• Regularly reviewing and adjusting the portfolio based on market conditions and company performance.

The specific allocation to each sector and stock will be determined by the fund manager based on market analysis, company performance, and investment opportunities.

Target Investors

The Chuuma Equity Growth Fund is designed for investors who:

• Are seeking long-term capital appreciation.

• Are willing to accept a moderate to high level of risk associated with equity investments.

• Have an investment horizon of at least 3 to 5 years to realize the full potential of equity investments.

• Desire to participate in the growth of the Zambian economy through stock ownership.

• Are comfortable with the fluctuations in the value of the investment due to market volatility.

Fees and Charges

The following fees and charges apply to the Chuuma Equity Growth Fund:

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

• Brokerage Fees: A brokerage fee of 1.5% is charged on each stock transaction.

• 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 Equity Growth 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 Equity Growth 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.

• 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 shall be adjusted accordingly.

• Redemptions will be subject to transactional limits and fees.

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

Risk Factors

Investing in the Chuuma Equity Growth 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 risk of an issuer defaulting on their obligations to pay back a debt.

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

• Equity Risk: The risk associated with the volatility of the stock market.

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

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

• Governance Risk: The risk that those in a position of power will not act in the best interests of the investors.

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

• Compliance Risk: The risk of failing to meet regulatory obligations.

• 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 will 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 Equity Growth 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 aims 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 Equity Growth Fund and is not a substitute for professional financial advice. Investors should consult with a financial advisor before making any investment decisions.