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Explore questions customers ask and learn how XENO can help you plan, save and invest for your financial goals.
There are several ways to accomplish this:
MTN & Airtel - web
MTN - USSD
Yes, indeed. XENO Investment Management Limited is licensed and regulated as a Fund Manager by Uganda’s Capital Markets Authority (License Number: XENO 2021 (FM)) and by the Uganda Retirement Benefits Regulatory Authority (License: FM 0010).
Absolutely! You can withdraw all or some of your money at any time by initiating a withdrawal request in your dashboard. However, in order to maintain your investment account, you need to leave a minimum of UGX 10,000.
All client funds are invested across four asset classes in combinations that are consistent with your unique investment plan.
All the above are considered traditional financial assets and are widely traded in transparent public financial markets around the East African region. The portion of your funds invested in each asset class will be determined by your individual risk tolerance level. A person with a low-risk tolerance (e.g. score of 1 out of 10) will hold a conservative portfolio concentrated in money markets and bonds whilst one with a high risk tolerance (e.g. a score 9 out of 10) will hold an aggressive portfolio with higher allocations to domestic and regional equities.
The investments in each asset class are executed using a tax-exempt unit trust fund.
Investors can start with as low as UGX 10,000. However, we realize everyone’s circumstances are different. One can start with a modest minimum amount and periodically add to their investment account (e.g. monthly contributions) over the investment horizon. Alternatively, you could decide to define a goal (e.g. retirement) and invest a lump sum amount at the beginning.
XENO is a goal-based investment service that helps individuals, families, groups, and institutions to plan, save, and invest in their financial goals. We provide both investment advisory and investment management in very simple steps:
An individual investor’s profile is determined by the following:
Financial goal and Time Horizon
An investor’s financial goals and time horizon have a bearing on their risk tolerance level. Generally, critical goals and/or short time horizons (e.g. less than five years) may dictate a more conservative approach. On the other hand, a less critical goal and/or longer time horizons may accommodate a more aggressive approach since they have sufficient time to recover from short term drops in the asset values.
A larger income and asset base may allow you the flexibility to take more risk because you have a greater ability to recover from underperforming investments. However, some investors with large assets may prefer to take a more conservative approach since they do not feel a need to take on extra risk to meet their goals.
Some people’s personalities often predispose them towards more or less risk-taking than others.
Experience With Investing
Some people have experience investing and therefore have an appreciation of the risk-return characteristics of different asset classes. More experienced investors often have the ability to take on risk since they have a clear understanding whereas inexperienced investors may be better off holding relatively conservative portfolios given their limited understanding of investments.
Understanding the risk profile of clients is central to XENO investment philosophy. XENO profiles you to understand your circumstances and determine your risk tolerance before recommending a customized investment portfolio to meet your objectives.
Yes! Of course. Once you visit the platform, you will at first identify one goal (e.g. Build Wealth) to set up your investment account. You can then log into your investment account and add another investment goal (e.g. Fund Emergencies or Fund Education). However, each goal has to have a minimum of UGX 10,000.
A unit trust fund is made up of units (think of these as shares) which have a unit (or share) price that fluctuates every day. For example, if you invest UGX 1,000,000 in a unit trust fund whose current unit price is UGX 100, you will be issued 10,000 units (=1,000,000 divided by 100) in return.
Your UGX 1,000,000 investment is then pooled together with funds from other investors and collectively invested by the fund manager. The value (including gains or losses) of the underlying assets is calculated every day and the price of each unit is established at the end of every day.
The price of each unit moves based on the value of the underlying assets. Continuing with our example above, if the price of each unit increases to UGX 101 the next day, then your investment will be UGX 1,010,000. On the other hand, if the unit price falls to UGX 99 the next, then the value of your investment will fall to UGX 990,000.
XENO unit trust funds have the following stakeholders that provide them with professional services:
A unit trust is a fund composed of investors' money, which is invested in financial assets according to a particular strategy. When you invest in a unit trust, your money is pooled with that of other investors to form a fund. The money in the fund is invested in various assets to meet the unit trust's objectives which are set by the fund manager.
XENO runs four unit trust funds that broadly cover the four diverse asset classes in its investment universe, namely:
1. XENO Uganda Money Market Fund (invests in treasury bills, fixed deposits, call deposits, etc.)
2. XENO Uganda Bond Fund (invests in bonds issued by governments and companies in East Africa)
3. XENO Uganda Domestic Equity Fund (invests in shares of Ugandan companies listed on Uganda Securities Exchange)
4. XENO Uganda Regional Equity Fund (invests in shares of other listed East African companies)
A withdrawal means we exit some of your investments and liquidate them into cash and then transfer that cash to your bank account. This process is usually completed within three (3) business days. For example, if you initiate a withdraw request at 3 PM on Friday, it will be processed by Wednesday the next week.
No, you can withdraw your funds whenever you like and there are no additional fees or default penalties. However, whenever you are withdrawing funds, we actually have to sell your investments and there are minimal transaction costs involved (typically less than 0.1% of the total). Regardless, we encourage our clients to have a long-term view for their long term goals.
Creating an investment account is free and does not oblige you to invest. There are no charges until you transfer money into your XENO investment account for the purpose of investing. You can close your investment account and withdraw your money whenever you want. After closing your account, we will hold your personal information for a limited time as required by law. However, investment is an act of taking risk and it is possible that in some cases you may not get back the entire sum you invested.
If you sign up using web, we ask will be asked for:
If you sign up via USSD:
Fees will be computed and accrued per day. For example, if fees are 2% per annum, each day we will collect 2% divided by 365 (i.e. daily fraction of the annual fees). It is important to keep in mind that just as fees are collected per day, the interest on underlying instruments are also accrued and distributed to the client accounts per day. For example, if interest on the underlying instruments is 14.7% per annum, each day we will accrue and distribute the 14.7% divided by 365 (i.e. the daily fraction of the annual interest). Remember, fees are usually much smaller than the returns on the underlying instruments.
We will charge an annual management fee of less than 2% of assets under management. To illustrate, if you start with UGX 10,000 at the beginning of the year and this investment earns 20% (or UGX 2,000) return that year so that your ending balance is UGX 12,000. We will compute the average balance in the account that year to be 11,000 (= (10,000+12,000)/2). The total management fee will be UGX 220 for that year (i.e. 2% of UGX 11,000). This comes to roughly UGX 18.33 per month. Fees are exclusive of VAT.
XENO does not handle your money at all. Like many investment managers, we believe that the safest way of looking after your investments is to appoint an independent custodian bank licensed by the Bank of Uganda. The custodian bank holds your money and maintains an accurate record of your deposits and the investments we purchase for you. Our appointed custodian is Stanbic Bank, one of the leading providers of custody services on the African continent. Stanbic Bank keeps all your investments in a segregated account for added security and will never mix them with Stanbic Bank’s or XENO’s own assets.
Your investments and any un-invested cash are therefore protected in the unlikely event that either XENO or Stanbic Bank decides to exit the market for any reason. If this were to happen, your segregated account would be re-assigned to another financial institution by the regulator (the Capital Markets Authority) and you would be kept informed.
Not sure where to start? Here's our basic three-step guide to help you setup a XENO account in under 5 minutes.
Choose from 8 goals like building wealth or setup an account for your Investment Club.
Our intelligent guide will help you set targets and assess your risk tolerance.
Complete your profile and fund using Mobile Money or a Bank transfer.
Explore and learn about everything from investment basics to monitoring your financial goals using XENO.
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