Portfolio Management/Construction

This is a financial advisory service that entails UMB IHL managing assets on behalf of Individuals, Corporate and other organizations on discretionary or non-discretionary basis.

Before a portfolio is developed for any client, UMB IHL assesses the client’s risk tolerance level (the amount of volatility the investor is willing to endure to achieve the investment goal) by conducting a risk tolerance evaluation. The risk tolerance level is then used to place clients in risk categories. Relevant information about the client such as tax status and other assets and liabilities also aid in determining an appropriate portfolio.

These risk categories and relevant characteristics are used in the analysis to determine the portfolio model needed to generate an asset allocation mix that meets the client’s investment objective.

UMB IHL has identified five portfolio models that correspond with the five risk categories of clients i.e. Capital Preservation, Current Income, Growth and Income, Long Term Growth, Aggressive Growth.

At UMB IHL these portfolio models determine the asset allocation mix that will meet the investment objectives of our clients. We currently manage portfolios for over 500 corporate clients and about 300 high net worth clients. UMB IHL has the fiduciary responsibility of managing the assets prudently through investments in the following:

Treasury bills

These are short term debt instruments (money market) issued by the Central Bank on behalf of Government to borrow for the Government’s short-term financial needs. The different types of Treasury Bills handled by UMB IHL are the 91 and 182 day Treasury Bills as well as the one year note. The various Treasury Bills types are sold through auctions.

Fixed deposits

This is an investment instrument with a fixed rate of return and varying tenors (30 days, 91 days, 182 days, 365 days etc). Payment of interest is made upon maturity/end of agreed. Funds placed in a Fixed Deposit usually cannot be withdrawn prior to maturity or they can only be withdrawn with advanced notice and/or by having a penalty assessed.

Commercial papers (CPs)

Commercial papers are short-term unsecured promissory note issued by well-established corporate institutions with the requisite credit rating/financial muscle. At UMB IHL, CPs are utilised for periods ranging between 15 days to 1 year. CPs are issued at a discount to their face value. CPs are negotiable instruments. They are freely transferable and payable to the bearer. The discount rates on CPs are determined by the demand and supply factors in the money market.

Stocks

This is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation’s assets and earnings. UMB IHL avails clients this opportunity to own a piece of companies listed on the Ghana Stock Exchange (GSE). In the event of bankruptcy, stock holders are in principle entitled only to any value remaining after all prior claimants have been satisfied. Stock holdings may be transferred to a new owner in whole or in part via endorsement and presentations to either the issuing corporation or (more commonly) it’s designated transfer agent and/or registrar.

Bonds

Bonds are a debt instrument carrying specified rate of interest and redeemable on the expiry of a specified period (exceed one year). The redemption periods in Ghana generally tend to be three (3) years or more, thus making the bond market to be a part of capital market (market for long-term funds). UMB-IHL trades in Bond market i.e. Government of Ghana Bonds and Corporate Bonds. UMB-IHL receives interest either by way of attached coupons encashable every year (Annual Interest), unless the bonds were issued at a discount to the face value. They are then redeemed at the face value on the date of redemption. Corporates like joint stock companies, finance companies and banks issue bonds in order to meet their capital requirements.

Other asset classes

Other asset classes that present the best opportunities for profit at any particular time are utilized by our fund managers. The benefit of professionally managing these assets is the realization of optimal returns on the assets through cross profiling of risks/return. UMB IHL also creates specialized schemes for individuals, groups and institutions, a few of which are as follows:

 Endowment Funds.

 Welfare Funds/Schemes.

 Trust Funds.

Research

UMB IHL conducts extensive research and analysis on the Ghanaian financial market, and economy as whole. The information provided by the UMB-IHL research team plays an important role in informing the financial and investment decisions of individuals, businesses and other corporate institutions. Research information provided include the following:

 Economic research
 Fixed income/ Equity research reports
 Industry/ Company analysis

Corporate finance & advisory

UMB IHL through its corporate finance and advisory team combines its wealth of financial, commercial and technical expertise to provide a full range of advice to assist clients evaluate an opportunity, or execute a transaction. We develop and provide tailor made solutions to all the corporate finance and advisory needs of both individual and institutional clients. Our corporate finance and advisory services cover all sectors, including but not limited to financial (includes banking and insurance), real estate, manufacturing, pharmaceutical, agribusiness, education and transportation. We provide a variety of corporate finance and advisory services. These include but are not be limited to the following:

Corporate restructuring: UMB IHL restructures and reorganizes the operational, legal and shareholding structure of a business. This results in increased operational efficiency and also improves the company’s profitability.

Debt Advisory & Arranging: We offer independent and objective debt finance advice to both individual and corporate clients, and also assist in arranging and restructuring of new and existing debt facilities.

Mergers & acquisitions: We provide extensive mergers and acquisitions advice, which amongst other things creates greater value. We also advice on disposals, spin-offs, divestitures and other restructurings.

Initial Public Offers (IPOs): UMB IHL in the form of an IPO helps companies to raise capital for expansion or embarking on new projects. An IPO is a first time offer of the stock of a private company to the general public. We provide assistance to the issuer to help determine the type of security to issue, the best offering price, the amount of shares to be issued and when to launch the IPO.

Capital raising (debt or equity): With our extensive market knowledge and investor relationships, we assist in the raising of debt and equity for the purposes of business expansion, repaying debts and funding asset acquisitions and other capital expenditure. These include IPOs, Bond Issue, Private Placements of shares and bonds.

Commercial Paper & Debenture Stock: We arrange and market commercial papers/debenture stocks on behalf of organizations and investors. This product is geared towards supporting reputable organizations with short to long term financial needs. The transaction involves the following:

• The issuing of a paper to raise funds to either support working capital or for expansion purposes.
• The marketing of the paper to investors.

Valuations: We provide business valuation to determine the economic value of a company or business, and also to determine the fair value of a business. This knowledge enables the seller or buyer make an informed offer.

Research: Our research desk provides industry and sector specific economic and financial research information.

Trading of Government of Ghana security

UMB IHL acting on behalf of UMB is a registered Primary Dealer of Government of Ghana, and Bank of Ghana Securities. This service is provided for both institutional and retail investors.

We manage this investment portfolio with prudence and efficiency, and currently have a client base of over 12,000 investors. Treasury bills offers safe and steady investment returns to risk-averse investors. In the same breadth, it contributes to the minimization of inflation in the economy.

Our team of professionals will ensure that your instructions on the investments are carried out. As a secondary dealer we also offer rediscount service to clients who would want to redeem their Treasury Bill investments before maturity dates.

BROAD FEATURES
• Risk free
• Treasury Bills can be discounted before maturity
• Minimum of GHC 100.00

Trustee & Nominee Services

UMB IHL acts as UMB’s agent in the provision of Trustee Services. This service entails the taking into custody or placing under its control all assets of a Trust Scheme, Bond Issue, Pari-passu security arrangement and other arrangements.

We ensure that the assets attributable to a particular scheme are separately identified and are clearly differentiated for easy identification and analysis. UMB IHL keeps nominee investment accounts for clients who do not wish to have their identities disclosed in particular investment operations.

UMB IHL Fixed Income Investment

UMB IHL offers well managed range of fixed income investment solutions. These include Institutional Account, Plus Account and Private Wealth Account.

Our objective is to deliver sustainable performance in selected areas of the fixed income market through a targeted and competitive range of high-yield investment strategies.

FEATURES

• 100% of portfolio invested in fixed income instruments
• Clients can rollover/re-invest upon maturity of investment
• Target: Individuals, Clubs, Corporate and Institutional Investors
• Investment Horizon: 91 days, 182 days and 1 year.
• Benefits : Earn maximized returns on your savings, Prompt payment at maturity, Capital preservation
• Redemption: Repayment is made at maturity either by cheque or bank transfer

Fund Management Services

UMB IHL offers customised fund management services to corporate institutions, individuals, and associations among others to meet specific investment objectives and return benchmarks.

Our institutional and individual fund management proposition includes:

• The setup of the fund
• Investment policy statement design
• Template for trust deeds
• Fund rules and regulations
• Individual member accounting or administration where applicable.
UMB IHL with its wide experience in Fund Administration and Management has over the years been involved in the creation, management and administration of Provident Funds for various organizations and institutions.
Our fund management services include the management of the following;

Provident Fund Management

UMB IHL with its team of professionals are in a position to assist institutions and organisations in the setting up of provident funds with the aim of investing in short, medium and long term instruments which will be ultimately generate healthy returns.

Areas where UMB IHL provides the requisite advice include but not limited to the following:

• The funds investment objectives
• The investment policies of the fund(e.g. the types of securities that may be purchased)
• The investment risk and how to minimize them.
The concept of provident funds involves the pooling of funds/contributions from workers into a fund on regular basis for investment in short, medium and long-term high-yielding instruments that generate healthy returns. This serves as a vehicle for employees’ financial growth and security and to supplement their incomes during retirement, and also forms part of staff retention packages for institution and organisations.

UMB IHL is also involved in capturing of data of members and their monthly contributions from which individual statements of accounts are prepared and submitted periodically to members as may be agreed with the Board of Trustees.

Pension Fund Management

UMB IHL is a registered pension fund manager with the National Pensions regulatory Authority (NPRA and is licensed by the Securities and Exchange Commission. A Pension Fund is a mandatory occupational scheme to be run by approved Trustees licensed by the National Pensions Regulatory Authority (NPRA) but managed by private fund managers. Contributions to the scheme would be 5% of the employee’s gross salary. The employee receives monthly instalments upon retirement to substitute for the loss of salary.

UMB IHL has a pension’s desk offering free pension migration services to the new second and third Tier pension schemes. These funds are invested in prescribed portfolios as per the NPRA regulations. Investment policy statements are crafted; investment objectives are also aligned with risk profile, asset allocation, return expectations and liquidity needs.

Our team are solidly trained and well versed in investment management practice and provides the following:

• Facilitate preparation of documents for scheme registration
• Structure portfolios based on the risk profile
• Educate employees on the three-tiered scheme and its benefits
• Regular update on changes in regulatory guidelines

Collective Investment Schemes

UMB Balanced Fund
This is an open ended mutual fund launched in September 2013. The main objective of the fund is to mobilise funds for investment in money market instruments, combined with the potential for higher returns associated with equity investments, and other regulated financial instruments to provide sustainable growth.

The UMB Balanced Fund invests in both equity linked securities of public companies traded on the GSE and money market instruments with an asset allocation of 30:70 respectively. It also holds a minimum of 5% and a maximum of 10% in cash.

Visit UMB IHL offices today and invest in our Balanced Fund if you are planning towards acquiring a property, retirement, education or any other financial goal you are looking to attain.

BROAD FEATURES

• Individuals, Institutions, Clubs or Societies, Pension Funds can all invest.
• Initial lump sum contribution needed to start is GHc20.00 and a minimum of GHC5 to top up
• Medium to Long term growth
• Sustainable Income