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Introduction

The Chuuma Government Securities 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 stable returns and capital preservation through investments in Zambian government securities. Chuuma’s mission is to democratize investing and empower individuals by providing accessible and user-friendly investment opportunities.

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Investment Objective

The primary investment objective of the Chuuma Government Securities Fund is to provide investors with stable returns and capital preservation by investing in a portfolio of Zambian government bonds and treasury bills. The fund aims to provide investors with a secure and reliable investment option while generating a steady income stream.

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Investment Strategy

The Chuuma Government Securities Fund will primarily invest in Zambian government bonds and treasury bills. The fund’s strategy will focus on:
  • Investing in a diversified portfolio of government securities with different maturities to manage risk and optimize returns.
  • Holding securities until maturity to minimize the impact of market fluctuations on the fund’s value.
  • Regularly reviewing and adjusting the portfolio based on changes in interest rates and market conditions.
  • Maintaining a low-risk profile by investing in securities issued by the Zambian government.

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Target Investors

The Chuuma Government Securities Fund is designed for investors who:
  • Are seeking stable returns and capital preservation.
  • Are willing to accept a low level of risk associated with government securities investments.
  • Have a short- to medium-term investment horizon of at least 1 year to benefit from the stability of government securities.
  • Desire a secure and reliable investment option with minimal fluctuations in value.
  • Prefer a low-risk investment to preserve capital and generate a steady income stream.

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Fees and Charges

The following fees and charges apply to the Chuuma Government Securities 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.

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How to Invest

Investors can purchase units in the Chuuma Government Securities 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.

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Redemption of Units

Investors can redeem their units in the Chuuma Government Securities 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.

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Risk Factors

Investing in the Chuuma Government Securities Fund involves certain risks, including but not limited to:
  • Interest Rate Risk: Changes in interest rates may affect the value of government securities.
  • Inflation Risk: The risk that inflation may erode the real value of investment returns.
  • Liquidity Risk: The risk that some securities may not be easily sold at their real values.
  • Reinvestment Risk: The risk of not being able to reinvest the returns at the same rate of return.
  • Credit Risk: The risk of the Zambian government defaulting on their obligations to pay back a debt.
  • 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.

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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.

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Fund Management

The Chuuma Government Securities 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.

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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.

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Contact Information

Chuuma Asset Management 6th Floor, ZEP-RE Business Park Alick Nkhata Road Lusaka, Zambia Email: info@chuuma.com Website: www.chuuma.com Phone: +260 762432603 Customer Support Email: support@chuuma.com

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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.

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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 Government Securities Fund and is not a substitute for professional financial advice. Investors should consult with a financial advisor before making any investment decisions.