Question:

Who manages KGIF?

Answer:

KGIF is managed by Kakawa Asset Management Limited (KAML).

Question:

What is a Unit Trust?

Answer:

A Unit Trust, also known as a Mutual Fund, is a collective investment vehicle which is used to pool the monies of multiple investors together to be managed on their behalf by a fund manager who invests in various asset classes.

Each investor is entitled to the units and benefits proportional to the amount invested in the fund.

Question:

What is the Kakawa Guaranteed Income Fund (KGIF)?

Answer:

The KGIF Fund is a Unit Trust Scheme that offers a minimum guaranteed return referenced to the Central Bank of Nigeria (CBN) Monetary Policy Rate (MPR). It also offers an upside yield of share of return in excess of the minimum guaranteed rate.

The Fund aims to achieve a balanced portfolio mix through holdings of a diversified list of investments comprising quoted equities and fixed income instruments.

Question:

What is the Bid Price?

Answer:

The price an investor will receive for one unit upon redemption (Sale).

Question:

How do I know the price of each unit?

Answer:

Prices are available on our website, www.kakawaassetmanagement.com, the NSE daily official list and also in some national daily newspapers.

Question:

Why invest in a unit trust as opposed to a direct equity/ fixed income investment?

Answer:

• Access to investment professionals that are usually only accessible to institutional investors.
• A mutual fund diversifies the risk of the investment because it is spread among various assets.
• Due to the scale of the transactions, charges are far cheaper than direct equity investment

The administration of such a portfolio i.e. ensuring receipt of dividends, bonuses etc is handled by the fund manager making it far easier to administer than direct equity investments.

Question:

What happens after I have made payment?

Answer:

As soon as your payment clears, the Fund Manager will allocate units to you, based on the current offer price of a unit of KGIF.

Question:

What is the minimum amount to invest?

Answer:

50,000 Units and in multiples of 5,000 Units thereafter.

Question:

How can I sell or Buy Units?

Answer:

You can redeem your investment or add to your investment at any time just by walking into any of our offices /outlets and filling out a redemption or subscription form.

Question:

How soon will I get my certificate after investing ?

Answer:

Your subscription form is processed and sent to the Registrar to the Fund, First Registrars, who will thereafter prepare and send the certificate confirming your investment in the Fund

Question:

What is this Minimum Guaranteed Rate?

Answer:

The Monetary Policy Rate (MPR) is the minimum guaranteed rate. This rate is reviewed twice a year in January and July respectively.

Question:

So is this rate higher/better than what I can get from my regular term deposits?

Answer:

It may or may not be, depending on prevailing market forces within the Nigerian Financial system. However, the subscriber to the KGIF has the opportunity to earn an upside yield in addition to the minimum guaranteed rate the Fund offers. This possibility presents a strong attraction to prospective subscribers.

Question:

In regular term deposits I get to keep my money for shorter periods and can still get this same rate, so why exactly should I be in this fund?
 

Answer:

The appeal of the KGIF is that the minimum guaranteed rate provides a hedge, since the subscriber definitely earns the minimum guaranteed rate; which reflects the characteristics of a short-term fixed deposit. However, the subscriber also has a chance to earn an upside based on overall Fund performance, presenting the possibility of benefiting from medium – long-term return as available on the stock market. As such, to reap the full benefits of investing in the KGIF the prospective investor should view his/her investments from a medium – long term perspective.

Question:

How am I sure you will disclose to me the exact excess made in this fund?

Answer:

The Guaranteed Income fund has Trustees (First Trustees Nigeria Limited) who will oversee and monitor the Fund Manager’s activities. Furthermore, KGIF is registered and regulated by the Securities & Exchange Commission (of Nigeria). The Kakawa brand is also added assurance of transparency in the Fund Manager’s activities.

Question:

Are there any hidden fees?

Answer:

No there are no hidden fees. The Fund Manager only gets compensated by a percentage of the amount by which the Fund surpasses the minimum guaranteed rate. Thus only after delivering value to the Fund subscribers does the Fund Manager get compensated.

Question:

Is there any lock-in period and on what amount of my funds will I be penalized? What is the charge?

Answer:

There is a lock-in period of 6 months from the date of purchase. Request for redemptions within 6 months of the date of purchase attracts a processing fee equivalent to 1% flat of the accrued returns.

Question:

Can I take my return upfront?

Answer:

No

Question:

Is KGIF registered with SEC?

Answer:

Yes.

Question:

How often does the Guaranteed Rate change?

Answer:

The minimum guaranteed rate has 2 review periods in the year; January & July.

Question:

What happens if I lose my Initial investment certificate?

Answer:

If you lose your certificate, you will be required to swear to an affidavit, get a police report, and fill an indemnity form. These 3 documents together with a request letter should be sent to the Fund Registrars, First Registrar Nigeria Limited for the issuance of a duplicate certificate.

Question:

Can my investment in KGIF be used as collateral in a Bank?

Answer:

Yes, you can use your investment as collateral to acquire a loan or other facilities from a bank.