The objective of the Arysteq Short Term Income Exchange Traded Fund is to provide an investment vehicle that gives access to investors who want to achieve higher levels of income while preserving their capital and liquidity. The Fund will invest in deposits issued by Namibian Banks (which will substantially track the South African short-term interest cycle), including structured deposits and stepped rate notes with interest payments linked to 3-month Windhoek Interbank Agreed Rate (“WIBAR”) (or a similar publicly available rate), adjusted for the lowest sovereign and / or bank risk in the Southern African region
The Fund is suitable for investors seeking low-cost convenient alternatives to traditional non-listed products. It can also act as a building block for investors to use when constructing their own portfolios.
This Fund invests in Namibian short to medium dated instruments that are considered risk free or carries some credit risk. These include a wide range of instruments issued by banks and other institutions.
The risk classification of this Fund is “low”. The Fund is appropriate for investors that have short time horizons as well as low risk tolerance. This Fund is appropriate for investors that wish to preserve their capital over a 12-month period. The recommended term for this investment in one (1) month and longer. This Fund is not suitable for longer term investments that provide growth in savings.
The Fund is not a bank deposit account. The Fund aims to maintain a constant price of 100 cents per unit. The total returns an investor receives is made up of interest received and any gain or loss made on instruments held by the Fund. While capital losses are unlikely, they can occur if, for example, one of the issuers of an instrument defaults. In this event, investors may lose some of their capital. To maintain a constant price of 100 cents per unit, investors’ unit holdings will be reduced to the extent of such losses. The yield is calculated according to applicable NASIA standards. Excessive withdrawals from the Fund may place it under liquidity pressure; if this happens, withdrawals may be ring-fenced and managed over a period of time. Purchase and redemption requests must be received by the Management Company by 10:00 each business day to receive that day’s price.
This Fund will not take derivative positions or apply any leverage in the portfolio through borrowing or short selling.
An annual fee of a minimum of 0.1% and a maximum of 1.5%. There are no performance fees.
Fund expenses, excluding asset management fees that are incurred in the Fund include trading, custody, audit charges and regulatory levies. We do not charge fees to invest or withdraw from the Fund.
Arysteq does not provide financial advice. If you appoint an adviser, advice fees are contracted directly between you and the adviser. For more information please contact the relevant platform.
Investors recognise that by investing in this fund the investor is taking part in the objectives and constraints of the fund, but they may not necessarily be the same as the investors’ individual objectives and constraints.
As such each investor should take caution when investing and consult their financial advisor with respect to their individual investment policy needs. This fund should just serve as a building block in the overall portfolio construction.
Information and content
The information in and content of this publication are provided by Arysteq as general information about the company and its products and services. Arysteq does not guarantee the suitability or potential value of any information or particular investment source. The information provided is not intended to, nor does it constitute financial, tax, legal, investment or other advice. Before making any decision or taking any action regarding your finances, you should consult a qualified financial adviser. Nothing contained in this publication constitutes a solicitation, recommendation, endorsement or offer by Arysteq.
Arysteq has taken and will continue to take care that all information provided, in so far as this is under its control, is true and correct. However, Arysteq shall not be responsible for and therefore disclaims any liability for any loss, liability, damage (whether direct or consequential) or expense of any nature whatsoever which may be suffered as a result of or which may be attributable, directly or indirectly, to the use of or reliance on any information provided.
Management Company
Arysteq Asset Management (Pty) Ltd (“Arysteq”) is registered with NAMFISA and the investment management license number is 25/12/86. Arysteq is a wholly owned subsidiary of Lexus Securities (Pty) Ltd, a diversified financial services group that is entirely owned, managed and staffed by Namibians. Arysteq has one wholly owned subsidiary, Arysteq Unit Trust Management Ltd under which our unit trust scheme is housed. Its unit trust scheme license number is 25/9/5/26.
The custodians of the Arysteq Unit Trust Scheme is Nedbank Namibia.
Performance
Collective investment schemes in securities (unit trusts or funds) are generally medium- to long-term investments. The value of units may go down as well as up and past performance is not necessarily a guide to future performance. The Management Company does not provide any guarantee regarding the capital or the performance of the Fund. Performance figures are provided by the Investment Manager and are for lump sum investments with income distributions reinvested. Actual investor performance may differ as a result of the investment date, the date of reinvestment and applicable taxes.
Unit Price
Unit trust prices are calculated on a net asset value basis, which is the total market value of all assets in the Fund, including any income accruals and less any permissible deductions from the Fund, divided by the number of units in issue. Forward pricing is used and fund valuations take place at approximately 15:00 each business day. Purchase and redemption requests must be received by the Management Company by 10:00 each business day to receive that day’s price.
Fund mandate
Funds may be closed to new investments at any time in order to be managed according to their mandates. Unit trusts are traded at ruling prices and can engage in borrowing and scrip lending.
