The Bourse Brazil Latin Fund is a US Dollar denominated, closed-ended, exchange traded fund that offers investors the opportunity to participate in the Brazilian and Latin American markets. This Fund is for the investor with a medium to long term investment horizon (3-5 years) and a moderate risk profile.
It is a balanced portfolio of assets including bonds, equities, Exchange Traded Funds (ETFs) and money market instruments invested in local and USD currencies. It is the first mutual fund to be listed on the US trading platform on the Trinidad and Tobago Stock Exchange.
Subsequent to the closing of the initial offer of units and its listing on the Trinidad and Tobago Stock Exchange, investors desiring to participate in the fund can place purchase orders through their brokers.
The Promoter of the Fund is Bourse Securities Limited who is also the Fund Manager, Investment Manager and Distributor. The investment responsibility for the Fund’s portfolio is delegated to a team of investment professionals at Bourse who are dedicated to its effective management.
What is the Investment Objective of this Fund?
The investment objective of the Fund is to seek a balance between long term capital growth and income by investing in a diversified portfolio primarily in the Brazilian and other Latin American jurisdictions.
Who should invest?
To determine whether this Fund is suitable for you, answer the following questions:
Do you have a medium to long term investment horizon (3 -5 years)?
Are you seeking an opportunity for capital growth as well as income?
Can you take medium risk?
If the answer is “yes” to all these questions, then you should consider investing in the Bourse Brazil Latin Fund
Attractive Returns – Over the medium to long-term, investment in equities (shares) have traditionally provided higher returns than deposits, bonds and other fixed income instruments.
Wealth Creation – Via capital appreciation on your investment.
Diversification – The fund invests in a diversified portfolio of companies, industries and sectors in the Brazil/Latin American region
Liquidity – If it becomes necessary to redeem all or part of your investment, you may do so via the Trinidad and Tobago Stock Exchange by placing a sale order through your broker.
Professional Management – Bourse has a cadre of highly experienced investment professionals who manage equity investments for individual clients and institutions, as part of our core business for the past 20 years.
Collateral – Investments in units can be used as collateral for a loan.
Income earnings– Distribution of income will be determined by the Trustee and will ordinarily be paid. This is reinvested automatically. However you may opt to have your income paid to you separately if you wish
Quarterly statements – You will get quarterly statements, either via traditional Mail, or Email.
N.B. The under mentioned information would only pertain when the Fund converts automatically to an open end fund in 2018.
What is the minimum amount to invest?
The minimum initial investment is US$2,000.00
The minimum subsequent investment is US$200.00
Redemption of Units
You have the opportunity to redeem your investment at any time. You can access all or part of your funds on any business day by redeeming units held in the Fund.
To redeem units, simply complete and submit the relevant Redemption Form no later than 11 am on any business day to the Fund Administrator, Bourse Securities Limited.
Submissions after 11 am will receive value on the next business day.
An investor who submits a Redemption Form by 11 a.m. on any business day can receive payment within 5 business days.
Interested investors can call 1-868-226-8773 or send an email to email@example.com
The Documents needed for opening an Account are:
Two (2) forms of photo identification (e.g. National Identification Card, T&T Passport or Driver’s License)
Proof of Address not older than 3 months (e.g. Utility Bill, Bank or Credit Card Statement)
Pay-slip or Job Letter as proof of income and employment.
A Source of Funds Declaration Form (which we will provide).
You will be required to open the Account at any of Bourse’s offices, but thereafter, any further Investments may be done at any branch of First Citizens Bank (please notify us if First Citizens is used).
You can invest using:
US$ Wire Transfer of funds
US$ Direct deposits at any branch of First Citizens Bank Ltd
Why would someone choose to invest in an Equity Mutual Fund as opposed to purchase individual stocks?
An investor that purchases individual stock is essentially placing ‘all his/her eggs in one basket’ hence can become exposed to greater risk in event that the stock value declines. A mutual fund invests in a diversified portfolio of assets which minimizes the risk of the fund.
Do mutual funds offer a fixed rate of return?
No, mutual funds invest in securities such as stocks, bonds and financial instruments whose yields and values fluctuate with market conditions.
How does an investor make money in a mutual fund?
What are the risks in Mutual Fund investing?
Mutual Funds are investments in financial securities with fluctuating values. The value of the stocks in a fund’s portfolio can rise or fall based on general economic conditions and the fortunes of the particular companies that issue those stocks.
Growth Funds seek maximum capital appreciation and carry high risk.
Money Market/Income-type Mutual Funds seek capital preservation and carry low risk.
What is the relationship with risk and return?
The higher the risk, the greater the return to the investor and vice versa.
What can an investor do to avoid or reduce risks?
To reduce risks, mutual fund investments should constitute part of an overall portfolio which ought to be spread among:
This is known as diversification and is the principle upon which mutual fund is based.
What is a Portfolio?
A portfolio is two or more investments which are not similarly affected by various risk factors. If the price of an investment drops because of the influence of a risk, the price of another investment may rise, thus reducing the impact on the total investment.
The risk on a portfolio is generally lower in comparison to the risk on a single investment.
A mutual fund states the kind of portfolio it seeks to construct and outlines how risk factors are likely to affect such a portfolio.
What is the difference between yield and total return?
Yield is the income per unit paid to a unit holder from dividends and interest over a specified period of time.
Total Return is a measure of the change in total value from the beginning to the end of a specified period, usually a year, including distributions paid to unit holders.
This measure includes income received from dividends and interest, capital gains distributions and any unrealized capital gains or losses.
Are Mutual Funds covered by Depositors’ Insurance?
Mutual Funds are not covered by Depositors’ Insurance as is the case with Bank Deposits. The risk is that of the investor.
How can an investor evaluate a fund’s long-term performance?
By comparing the performance of the fund to one or more securities market indices such as S&P 500 (Benchmark for the SavInvest US Dollar Capital Growth Fund), BSE100 (benchmark for the India component of the SavInvest India Asia Fund), the MSCI AC (All Country) Asia Ex Japan Index (benchmark for the Asia component of the SavInvest India Asia Fund) and T&T Composite Index (benchmark for the SavInvest Capital Growth Fund)
Is an investor’s money locked up for a certain period of time in a mutual fund?
Mutual Funds provide a high level of liquidity to investors. An investor who submits a redemption form by 11am on any business day can receive payment within 5 business days.
How long should an investor keep his/her investment in a Mutual Fund?
This depends on the type of Mutual Fund:
For a Capital Growth Fund, it is advisable to keep an investment for the medium to long-term (approximately a minimum of 3-5 years)
For a Money Market Fund, it is advisable to keep an investment for the short-term (approximately a minimum of 3 months-1 year)
Many types of funds work best when allowed to ride out the ups and downs of market cycles over long periods of time.
What are the fees associated with a Mutual Fund?
Fees include the following:-
These fees are calculated as a percentage of the Net Asset Value (NAV) of the Fund and are paid on a quarterly basis.
Is the Management Fee part of the Sales Charge?
Management Fees are paid from the Fund’s Assets and are reflected in the Bid and Offer prices.
In contrast, most sales charges are deducted from the investor’s initial investment.
When an investor purchases units in a Fund, how can he/she tell how well his/her investment is doing?
By taking the total number of units he/she owns and multiplying these by the Fund’s Net Asset Value (NAV) per unit (or Bid Price). He/she should compare today’s value against his beginning value. Bourse provides updates of NAVs of a daily basis. They can be found on our website under the “Current NAV Prices” tab and are published weekly on Monday’s Express Newspaper on page 10.
How many persons can invest jointly in a mutual fund?
One MAIN Account holder and up to a maximum of three joint parties are allowed.
Can an investor open a SavInvest Mutual Fund for a minor?
No, accounts can only be opened for individuals over the age of 18 years.
If a unit holder dies, what happens to his/her investment?
For an individual account, the legal representative of the unit holder becomes the rightful owner of the units.
For a joint account, the other party/parties become(s) the rightful owners.
This prospectus contains information to help you make an informed investment decision and to help you understand your rights.