Bora Capital Advisors has launched two of its collective investment schemes, Bora Fixed Income Unit Trust and Bora Balance Unit Trust.
The schemes are targeted at Ghana’s retail and institutional markets to service a growing client demand and also meet a regulatory directive from the Securities and Exchange Commission (“SEC”), that all clients with balances below GH¢100,000.00 should be invested through collective investment schemes.
In his welcome address, Mr. Paul Baah-Sackey, Bora’s Board Chairman said that “these products will give everyone in Ghana an opportunity to benefit from an experienced team of well-trained investment professionals without the requirement of having to invest huge sums of money. We believe that every Ghanaian, no matter how low their income, can build significant wealth through consistent investments in schemes that are managed to consistently deliver optimum returns commensurate with the risk associated with that particular scheme”.
Telling Bora’s Capital phenomenal growth story, Mr. Nana Sarfo, CEO of Bora Advisors, noted, “We have benefited from our clients giving us repeated business through their appreciation that, at Bora, we put our clients’ interests first, and deliver excellent simple and effective solutions”.
Mr. William Mensah, Executive Director in charge retail and wealth management explained the details of the offers as follows:
- The Bora Fixed Income Unit Trust, is an open-ended Unit Trust that will primarily invest in a diversified portfolio of Fixed Income Securities. The Trust will have Fidelity Bank as the Trustee for the scheme. The Objective of the Trust is to preserve and enhance unit holders’ wealth to meet medium to long term financial goals, while creating liquidity to meet short term needs.
- Bora Balanced Unit Trust will seek to grow unitholders’ wealth to meet medium to long term financial goals with diversified portfolio of fixed income and equity securities. Under normal market conditions, 55% of the Trust’s net assets shall be invested in fixed income securities and the residual 40% in equities with the remaining 5% in near cash to create liquidity. GT Bank are the Trustees of the Trust.
He also added the key factors that make Bora Units Trusts different from the competition. “Factors that make Bora Units Trusts unique include, (i) The use of experienced and skilled fund managers, (ii) Bora’s Low expense ratio which ensures that the investor gains the most out of their investment (only 1.25% management fees), (iii) no front load charges on both the Unit Trusts and (iv) transparency and reporting, emphasizing Bora tradition of and commitment to sending clients monthly statement in order for clients to know the status of their investments as well as their commitment to publish asset breakdown as reported by the respective Trustees quarterly on their website”.
“For any investors ‘if you have some spare change in a bank account or are an existing low yielding investment, consider putting your savings to better use. You can invest as little as a once-off of GH¢100 or regular monthly minimum amount of GH¢20’”, he urged.
Speaking on behalf of the Director-General of SEC, Mr. Paul Ababio, Deputy Director-General, Finance, expressed the Commission’s commitment to enhanced supervision of the security industry and charged market operators to keep their fiduciary role and professionalism. He indicated that the number of collective investment schemes (mutual funds and unit trusts) in the industry had grown from 53 in 2017 to 80 as at June 2022, providing investors with a wide range of investment options. The assets under management of the CIS had also increased from GHC 2.17 billion in 2017 to GHC 7.8 billion at June 2022.
Mr. Ababio further advised members of the public to ensure that they are well-informed about investment opportunities before committing to them. He stated “SEC shall continue to promote an orderly growth and development of an efficient, fair, and transparent securities market in which investors and the integrity of the market are protected”.