AIM FREEDOM FIXED TRUST 

Name and Nature of the Fund

AIM Freedom Fixed Income Trust (formerly known as Freedom Fund Unit Trust) aims at providing investors with maximum returns on their investment by outperforming its benchmark to provide an efficient vehicle for investors to diversify their portfolio into a variety of fixed income securities.

Investment Objective:

This scheme aims to provide increasing levels of income and capital appreciation. It is designed for and publicly offered to investors seeking to obtain exposure to a well- diversified investment portfolio of listed and unlisted fixed income securities such as bills, bonds, notes, repos and other cash equivalent securities.

Fund Type: Open Ended

 Fund Category: Fixed Income Fund

Inception Date: June, 2010

Fund Manager: Ashfield Investment Managers Limited (“Ashfield” or “AIM”)

 Place of Business: 18 Noi Fetreke Street, West Airport

 Management Fees: 2.50% of the Net Asset Value of the Unit Trust       

Subscription Fee: None

Back Load Fee:  ≤ 2%

 Minimum Deposit: GHS 20

Investment Policy and Strategy:

The Fund is targeted at the average to above average investment risk taker. The core investment strategy of AIM Fixed Income Trust is the provision of liquidity, security, and the enhancement of reliable streams of income through investments in well selected:

• Fixed Income Securities

• Fixed Income Securities

• Cash and Cash Equivalent securities

Asset selection of the scheme is based on sound research and market insights. The scheme is well suited to investors who do not have the time commitment, resources, and expertise it takes to manage and monitor investments in an ever-dynamic securities market.

Permissible Investment/ Asset Allocation

The Trust shall invest the scheme’s assets into the following securities:

• Debt securities listed on the GSE and other International financial markets.
• Debt securities of public companies not listed on GSE.
• Debt securities in private or unlisted companies.
• Money market instruments.
• Cash and cash equivalent securities.

Front and Exit Load Fees

Below are redemption fees associated with this Fund:

Any redemptions by an investor of more than 3% of the Net Asset Value of the Fund shall be settled within ten (10) working days.

Limitations on Redemption

A Unit holder cannot redeem units in an amount that will leave the holder with less than 20 units, or a lesser number prescribed by the fund manager.

Income/Dividend Distribution Policy

The Trust does not distribute investment income either in the form of cash or units to registered unit holders. All investment income is reinvested in the Trust. Registered unit holders who wish to withdraw their earnings will have to either sell a part or, all their units.

Limitations on Investment

The Trust is subjected to certain investment limitations and portfolio diversification requirements. The Trust may not:

1. Invest more than 50% of the total value of its assets in a particular industry or company,
2. Make short sales or maintain a short position in any security,
3. Purchase securities on Margin,
4. Make investments that will result in Manager, Trustee, or Trust gaining management control of a company which the investment has been made,
5. Contemplate investments consisting over 25% of the Trust’s net asset value in securities offered by a single issuer without the prior approval of the Commission,
   1. Invest more than 10% of net asset value of the Trust in other collective investment schemes.
   2. As a fundamental policy, the trust may not borrow money or pledge its assets except for a few reasons:
      1. Borrow from the Trustee as a temporary measure for extraordinary or emergency purposes or to meet redemptions in amounts not exceeding 10% (taken at market value) of its assets and pledges its assets to secure such borrowings.
      2. May obtain such short-term credit as may be necessary for the clearance of purchases and sales of portfolio securities.

• May purchase securities on margin to the extent permitted by applicable law.

Acknowledgement of Risk

Fixed-income securities are not risk-free. By investing in AIM Freedom Fixed Income Trust, Investors acknowledge that they are exposed to certain risks and special considerations. The points below are a few of the reasons the value of the Trust’s assets may be adversely affected:

1. The fiscal, monetary, and economic conditions of the jurisdictions where the scheme’s investments are domiciled. In unfavorable market conditions, these can cause significant declines in the value of your investments in the fund.
2. Decline in the prices of fixed-income securities on the exchanges where the Trust’s assets are listed will cause the value of the Trust’s investments to decline.
3. Regulatory risk exists where changes in the valuation of the trust’s assets can be occasioned by new regulations and directives.
4. Default risk – Issuers of debt securities that the Trust is invested in may be unable to pay their interest and maturity obligations to the Trust. This may cause significant declines in the Trust’s value.
5. Liquidity –In bear market conditions where there are more sellers than buyers, the Trust may not be able to sell or redeem its assets for cash. These may cause severe liquidity constraints and lead to the Trust’s inability to honor investor’s redemption requests.

Other Parties to the Fund and their Addresses

Auditor: AssuranceHub Consult

Address: House No. 704/1462, Forest Avenue, George Walker Bush Motorway.

GPS: GA-157-6218

Trustee: Universal Merchant Bank (Ghana) Limited

Address:   57, Examination Loop North Ridge, Accra
P.O. Box GP 401 Accra, Ghana

Bankers: Universal Merchant Bank (Ghana) Limited

SSNIT Emporium, Liberation Road, Airport City, Accra.

P.O. Box GP 401 Accra, Ghana