Units of trust are simple investment devices based on preferential debentures. Put simply, you invest money in a company you purchase from regularly. You do not get back money primarily from the company, but you get what money can buy – goods, services, or use of physical assets. When you wish, you can get the original investment back.
Of course, any company can issue an investment instrument like this, but we believe a local scheme has several advantages.
1) Education: the effort needed to explain to the public and to entrepreneurs is shared amongst those companies participating
2) Recognition. Local consumers will recognise the scheme and a shared scheme carries more credibility
3) Comparison. If units are valued similarly across the board, investors will be able to compare and contrast offerings from local companies.Read More »The Units of Trust scheme investing in local, sustainable enterprises