cedi sika investment club prospectus

0 Cedi Sika Investment Club: PROSPECTUS JULY 2013

Cedi Sika Investment Club

(CSIC)

PROSPECTUS

An In-depth knowledge into the goals and objectives of the Club as well as operations and

governance structure


Contents

RESPONSIBILITY STATEMENT ............................................................................................................. 1

CONTACTS ......................................................................................................................................... 1

PART I: OVERVIEW OF THE CLUB........................................................................................................ 2

1.1 Legal Status ......................................................................................................................... 2

1.2 Vision Statement ................................................................................................................ 2

1.3 Mission Statement ............................................................................................................... 3

1.4 Goals .................................................................................................................................... 3

1.5 Concept ............................................................................................................................... 3

1.6 Values .................................................................................................................................. 3

PART II: OPERATIONS......................................................................................................................... 4

2.1 NETWORKING OF PROFESSIONALS ............................................................................................... 4

2.1.1. Amalgamation of Gregarious and Supportive Individuals ..................................................... 4

2.1.2. Education and Training of Members ..................................................................................... 4

2.1.3. Socializing ............................................................................................................................ 4

2.2. INVESTMENTS AND PORTFOLIO MANAGEMENT ......................................................................... 4

2.2.1. Investment Decisions ........................................................................................................... 5

2.2.2 Portfolio and Fund Management .......................................................................................... 5

2.2.2 Club Accounting Concept ...................................................................................................... 6

3.0 MEMBERSHIP .............................................................................................................................. 6

3.1 Qualifications and disqualifications .......................................................................................... 6

3.2 Admission Requirement ........................................................................................................... 7

3.3 Withdrawal of Membership ..................................................................................................... 7

3.4 Subscriptions and Dues ............................................................................................................ 7

3.5 Withdrawal of Member’s Equitable Share of Club Assets ......................................................... 7

4.0 ORGANIZATION AND LEADERSHIP ................................................................................................ 8

4.1 Governing Board ...................................................................................................................... 8

4.2 Executive Committee (Officers) ................................................................................................ 9

4.3 Patrons (Body of Experienced and Professional Advisors) ......................................................... 9

5.0. PROSPECTS AND RISK FACTORS .................................................................................................. 9

5.1 PROSPECTS .................................................................................................................................. 9

5.1.1 Education and Training of members ...................................................................................... 9

5.1.2. Companionship .................................................................................................................. 10

5.1.3. Increase in Buying Power of Individual Members ............................................................... 10

5.1.4. Safety in numbers (Reduced Risk) ...................................................................................... 10

5.2 RISK FACTORS AND MITIGATING MEASURES .............................................................................. 10

5.2.1 Dispersion of members ....................................................................................................... 10

5.2.2. Loss of Investments or Depreciation of Invested Funds ...................................................... 11

5.2.3 Embezzlement .................................................................................................................... 11

6.0 PROFILE OF PROMOTERS……………………………………………………………………………………………………………12


RESPONSIBILITY STATEMENT

Dear reader, please be informed that Cedi Sika Investment Club (CSIC) is neither a mutual

fund nor a unit trust. However, an association of persons limited by guarantee who have

decided to come together to learn about investments while promoting the financial and social

well-being of members. The club will be structured like a professional business organization

with elected officials, the club shall meet regularly to discuss companies and offerings and

other investment vehicles to increase the investment knowledge base of its members.

CONTACTS

PMB 39 KIA

Accra-Ghana

Email: [email protected]

Website: http://cedisika.blogspot.com/

Tel: 054 7568630

026 6309021

020 7630917


PART I: OVERVIEW OF THE CLUB

The idea of forming CSIC is the need to bring together professionals from different fields

of operation and academic background to mutually educate themselves about investment

and entrepreneurism. The concept of power in numbers forms the foundation of this

association. The promoters are of the belief that ambitious young professionals can come

together to collectively develop themselves in their quest to realize the full potential

deposited in them to impact and positively affect their society.

Among the top objectives of the club is to introduce and educate members about personal

finance, corporate governance, corporate finance, financial markets and other investment

vehicles including business ventures, stocks and bonds. The idea is to deepen the

financial literacy knowledge base of members while indoctrinating in them the culture of

savings and investments as well as entrepreneurism and corporate governance. For this a

portfolio of investment will be set up made up of subscription of members and will be

managed based on the collective decisions of members.

The club among other objectives seeks to form a network of intellectuals to support the

financial and social well-being of each other. It seeks to engage members in intellectual

discourse via presentations, panel discussions, guest speakers, and other mediums while

fostering a positive social environment for networking and fun.

1.1 Legal Status

With reference to the Company Act 1963 (Act 179) with amendments, CSIC will be

registered as a company limited by guarantee. Meaning, an incorporated association of

persons without share capital, which the liability of its members is limited to the amount

each one of them undertakes to contribute at the event of winding up the association.

With regard to the above, the club shall not operate to generate profit but rather only

engage in activities to promote the objectives of the club for the benefit of all members.

1.2 Vision Statement

Promote the financial and economic literacy knowledge base of its members while

maximising their social well-being as valuable citizens of the society.


1.3 Mission Statement

The Club exists to further its members' knowledge of the various investment methods

and strategies in a diverse and conducive club environment. It seeks to engage

members in intellectual discourse via presentations, panel discussions, guest speakers,

and other mediums while fostering a positive social environment for networking and

fun.

1.4 Goals

i. To create a network of professionals from different fields who will come together to

share ideas, opportunities, jobs and support each other for their economic and social

well-being.

ii. To bring together a team of enthusiastic and business minded persons to learn

entrepreneurship skills, savings and investment as well as financial literacy from each

other.

iii. The ultimate aim of this association is to form an association of investors to raise

capital through savings and investments for the formation of a holding company to own

equity in different corporations as well as establish businesses which will be controlled

and managed by members to grow the wealth of the members.

1.5 Concept

The foundation of CSIC is founded on the belief that each individual has the capability

of been successful in all aspect of life irrespective of educational or social background

and has the capacity to positively impart his/her society. However, this dream can

ultimately be fulfilled through the support, encouragement and advice from others. It is

therefore important that the individual get connected to people who believe in the

dreams and aspirations of the individual and willing to provide the necessary support.

The Club is therefore founded to provide the environment to network persons to support

each other.

1.6 Values

i. The values of CSIC include the believe and trust in God as the giver of life and source of

success (Jeremiah 29 : 11) , who created all to be successful and deposited potentials in

all to positively affect his or her environment.

ii. The believe that all men were created equal and have equal chance of being successful

irrespective of location or environment.

iii. Strategic planning, hard work and commitment to goals and vision as well as a disciplined

life style are the secretes of all successful men and women.


PART II: OPERATIONS

2.1 NETWORKING OF PROFESSIONALS

2.1.1. Amalgamation of Gregarious and Supportive Individuals

CSIC in its attempt to enable members know more about each other in areas such as

educational background, skills and experience will maintain an up to date database of

members which will be available to all members of the club. This will enable members to

know what each other is capable of doing and as a result connect themselves to available

jobs, contracts and other available opportunities. In addition, this will enable members know

who to go to in the event of seeking support or professional advice. Members will also get to

know one another during meetings and other programs of the club.

2.1.2. Education and Training of Members

The Club is to bring people together not only to help them invest, but in addition, maximize

their wellbeing in the area of education and professional studies, career development and job

security, financial literacy, entrepreneurship and personal development among others. CSIC

in its quest to increase the capabilities of members and make them more valuable citizens will

continuously organize seminars, webinars, debates and other educational progras to increase

the knowledge base of members. In addition the association will conduct research into

various fields and business opportunities and make them available to members. Furthermore,

organize social events where members can meet with outstanding investors and other

corporate personalities to learn from their knowledge and experience.

2.1.3. Socializing

The club will organize social events such as dinners, games, leisure trips which will bring

members together to enable them know more about each other.

CSIC in ensuring the social well-being of members will set up a welfare fund which will be

used to support members in need and also support members during occasions necessary to

show affection.

2.2. INVESTMENTS AND PORTFOLIO MANAGEMENT

The Club shall establish a fund, which all Club members will be obliged to contribute into on

a regular basis and use such fund to invest in a diversified portfolio of shares, treasury bills

and bonds and other investment opportunities, for the mutual benefit and interest of Club

members. In addition, embark on business projects as agreed by the Club.


2.2.1. Investment Decisions

Management of the fund will be the principal activity of Cedi Sika Investment Club giving all

members an opportunity to participate in the investment decision process.

i. The investment policies of the Club will be set by an investment committee and

adopted by not less than 50% of members (in number) at the first meeting of Club

members, subject to such changes as shall subsequently be made by not less than

75% of members (in number).

ii. Specific investments for the Club will be selected by the Investment and Research

Committee.

iii. Research teams, made up primarily of club members, will be responsible for

monitoring news and performance of assigned stocks, as well as providing market

research and courses of action.

iv. The investment and research committee shall present to the club members,

investments decisions taken on a quarterly bases.

v. The decisions of the investment committee will be submitted to patrons of the club

for review and advice before final decisions are taken.

vi. The final decision for changes in the fund's portfolio will be made by the Executive

Committee based on the advice of the patrons.

2.2.2 Portfolio and Fund Management

The fund will be managed on daily basis by the two Treasurers (The Portfolio

Manager and the Financial Controller). With the aid of the club accounting software,

the treasurer will track the performance of the various shares, bonds and other

investments which forms part of the club’s portfolio. Based on the information

obtained perform daily valuations and analyses of the performance of the portfolio to

assess the total value of the portfolio and determine the price of a unit held in the

portfolio.


2.2.2 Club Accounting Concept

The purpose of investment club accounting is to maintain a complete and accurate

record of all financial transactions involving a club as well as to produce monthly

status reports for the members, annual reports for tax purposes, and withdrawal tax

reports for members who withdraw some or all of their funds. The club accounting

enables members to hold different amount of units in the club according to the

individual’s contribution. The value of the unit is determined by dividing the total

value of the clubs portfolio over the number of units held by members. Therefore, a

member is able to know the value of his or her investment by multiplying the total

number of units held by the current unit price.

3.0 MEMBERSHIP

3.1 Qualifications and disqualifications

A person qualifies to be admitted as a member if that person;

(a) is of not less than eighteen(18) years of age,

(b) has paid the taxes and rates or made arrangements satisfactory to the appropriate

authority for the payment of the taxes and rates of that person.

A person is not qualified to be admitted as a member if that person;

(a) is of unsound mind, or

(b) has been sentenced to death or imprisonment for an offence involving fraud, dishonesty

or violence or is a person against whom adverse findings have been made by a competent

authority and accepted by the Government or in respect of whom an offer of reparation has

been made and accepted by the Government, or

(c) being a professional person, is disqualified from practicing that profession on grounds of

malpractice, fraud or dishonesty by the competent professional body.


3.2 Admission Requirement

i. An individual shall be admitted as a member after completing a membership application form

and signing a declaration sheet as well as paying the relevant subscription/joining fee as

determined by the members at an Annual General Meeting of the Club Members.

ii. On admission to the Club, a new member will sign an agreement. The new member shall pay

membership dues in such amount as agreed by the house. This may be monthly, quarterly, bi-

annually or annually. The membership dues shall be used to run the affairs of the club.

3.3 Withdrawal of Membership

A member shall be expelled if 75% of other members present forming a quorum at a properly

constituted meeting of the club support a resolution to that effect. A member who is expelled

shall be notified in writing and shall have his/her equitable share of the club assets returned in

accordance with the rules of the club.

3.4 Subscriptions and Dues

(a) A subscription shall be paid to the Club by all members on or before the 1st working day of

each month by depositing such subscription amount into a designated Club Bank Account.

Any contribution made after the 1st day of the month shall be considered as contribution for

the next month.

(b) Each member’s subscription will purchase for that member an appropriate number of units

according to the unit value declared by the treasurer/investment committee.

(c) Members of the club will from time to time determine the minimum subscription to be paid

by each member each month. The monthly subscription is at the discretion of a member.

However, it should not be less than the minimum amount agreed on by members at a

general meeting.

3.5 Withdrawal of Member’s Equitable Share of Club Assets

i. The rules shall determine the procedure whereby a member may resign from the club

and withdraw his/her equitable share of the club’s assets but the maximum period to

elapse between the date of resignation and the date of full repayment shall not exceed

90 days. Any reason for a delay beyond this time shall be communicated to the

deserting member.


GOVERNING BOARD

RESEARCH AND INVESTMENT COMMITTEE

INFORMATION TECHNOLOGY COMMITTEE

WELFARE & EVENT COORDINATING

COMMITTEE AUDIT COMMITTEE

PATRONS

EXECUTIVE COMMITTEE

ii. No member shall be able to withdraw his/her units in the club less than the prescribe

minimum a member should have.

iii. Prescribed minimum therefore refers to the amount of units the minimum monthly

subscription shall acquire according to the unit value at the time of payment.

4.0 ORGANIZATION AND LEADERSHIP

FIGURE 4: THE LEADERSHIP AND ORGANIZATIONAL STRUCTURE

The leadership and organization structure of the Club shall consist of a governing council,

patrons, executive committee and the various standing committees with their heads.

4.1 Governing Board

i. There shall be a governing board which shall be the supreme

administrative organ of the Club and exercise all powers and perform all

functions of supreme administrative organ. The governing board shall

have the highest authority in all affairs concerning the club. The board

shall be tasked with all strategic decisions concerning the clubs business

and social policies.


ii. The board shall be composed of all the members of the executive

committee, the immediate past president and the portfolio manager (the

vice president and the financial controller can replace the president and

the portfolio manager respectively if they are not available to serve.), all

standing committee heads and five (5) members nominated at a general

meeting of which two being the longest serving nominees shall retire

each year. However, the two retiring nominees are eligible for re-

nomination.

4.2 Executive Committee (Officers)

i. The Executive Committee shall have the sole authority over the day-to-

day administration of the club and to formulate and implement tactical

decisions necessary to ensure the implementation of the strategic

decisions of the governing board.

ii. The executive committee shall comprise of the President, who shall be

the chairman of the committee, the other members shall be the Vice

President, Administration Executive, Portfolio Manager, Financial

Controller, Public Relations Head and Information Technology Head.

4.3 Patrons (Body of Experienced and Professional Advisors)

The Club shall have patrons not less than three (3) in number consisting

of successful and experience professionals in the field of Law,

Accountancy, Finance and investment among others who support the

objectives of the club and willing to provide the necessary advice and

support to club leaders and Members to help achieve the objectives and

goals of the club.

5.0. PROSPECTS AND RISK FACTORS

5.1 PROSPECTS

5.1.1 Education and Training of members

The association will seek to provide a conducive and friendly environment to enable

members learn from each other. Members will be able to tap into the knowledge and

experience of other members for their careers and personal life. Seminars, Workshops


and other meetings will be organized periodically where experience and successful

personalities will be invited to educate and train members in fields or areas the

association seeks to promote. The strength in numbers will enable members to get in

touch with personalities or information they cannot afford as individuals

5.1.2. Companionship

The club seeks to create a family in which members will feel proud being part of. A

family that will care about one another and seek to the success and wellbeing of each

other. All members will contribute into double the joy of each other and halving the

suffering of each other. Members will sympathize with bereaved members and

celebrate and congratulate the success of others.

5.1.3. Increase in Buying Power of Individual Members

The strength in numbers will enable members to invest in high earning investments

which require huge capital beyond the rich of an individual investor. The collective

investment of individual members can be put together to make bigger investments for

higher earning.

5.1.4. Safety in numbers (Reduced Risk)

In the same way members are able to increase their earnings through collective

investments, so as members are also able to reduce the risk of losing all their

investments by being part of a mutual fund. The diverse knowledge of individuals

contributing to decision making and investments will help to reduce risk to the barest

minimum. In addition several people will be able to monitor the investment portfolio

so as to be proactive other than being reactive in identifying none performing

investments.

5.2 RISK FACTORS AND MITIGATING MEASURES

5.2.1 Dispersion of members

One of the challenges members and leaders of the club will face will be the dispersion

of members all over the country or outside the county. This can make administration

and meetings very difficult.

To solve this most of the activities and meetings of the club will be done or made

available online on the Club’s web page and through the social media such as

facebook, twitter, whatsapp among other. In other to make this effective, the club will

set up a strong IT team with adequate infrastructure to support the services of making


activities online to ensure all members participation in club’s activities irrespective of

location.

5.2.2. Loss of Investments or Depreciation of Invested Funds

In order to protect the invested funds of members, the investment portfolio of

members fund will be well structured. In doing this, the risk associated with each

kind of investment will be well considered. Also, the portfolio will consist of high

yielding investments such as stocks which usually come with high risk as well as

other investment which are relatively safe to maintain a balance of gain in all cases.

The investment decisions will be based on the collective views of all members and

will not be left as a privilege of few individuals to do as they please. In addition

advice will be sought constantly from professionals and personalities with knowledge

and experience in investments which the association decides to make to thoroughly

know the risk and benefits before final decisions are made.

5.2.3 Embezzlement

The investment of members needs to be kept in safe hands of trusted persons with

integrity. In addition there will be numerous barriers as well as checks and balances

to ensure that selfish individuals do not benefit at the expense of others. In addition,

there will be a strong auditing team assisted by the service of a professional

accountants to periodically audit the accounts of the association to prevent any

embezzlement of funds.

12


PROFILE OF THE

Isaac Dwimoh Opoku

Isaac holds a

degree in BSc.

Land Economy

from KNUST,

Kumasi, an

Advance

Diploma in

Project Management from Institute of

Commercial Management, UK and a

Certificate in Securities Industry Course

from the Ghana Stock Exchange. He is

also a student member of the

Chartered Institute of Bankers, Ghana,

and currently undertaking the CIB

Associateship Examination Course as

well as a professional trainee member

of the Ghana Institution of Surveyors.

Isaac possesses considerable

knowledge in corporate governance,

corporate finance and financial

markets. In addition, he has a lot of

exposure in association management

and leadership through various

positions held during his secondary

and tertiary education days.

PROMOTERS OF CEDI

Kojo Owusu Nyantekyi Fosuhene

Kojo is a

student

member of the

Association of

Chartered

Certified

Accountant, UK

and currently

taking the ACCA Professional

Accountancy Course.

He is a business oriented individual, a

wonderful team player with interest in

entrepreneurship and investment.

SIKA INVESTMENT CLUB

Palma Dawin Abdul Naser

Palma holds a

degree in BSc.

Actuarial

Science, First

Class Honours

Division from

KNUST, Kumasi

and also a

finalist of the Association of Chartered

Certified Accountants, ACCA

Professional Accountancy Course.

He has a lot of exposure and

experience in entrepreneurship and

venture capital projects, having started

and managed some business interests

successfully while in school.

Foster Agyeman Duah

Foster holds a BA

Economics from

KNUST, Kumasi

and also the

Securities Industry

course certificate

from the Ghana

Stock Exchange.

Foster has passion for learning, sharp

analytical skills and an in depth

understanding of Investments,

Economics, Corporate Finance,

Portfolio management, Securities

Trading, and Financial analysis.


Kenneth Appiah Donkor-

Hyiaman

Ken is the

Managing

Partner at

MeTis, a real

estate services

firm and Director

of Research for

the Real Estate

Database Project. He holds an MPhil in

Planning Growth and Regeneration

from the University of Cambridge, UK;

BSc (Hons) Land Economy; KNUST,

Kumasi; Advanced Executive Certificate

in Project Management (Graduate

School of Governance and Leadership)

and a Certificate in Securities from the

Ghana Stock Exchange.

Ken has extensive experience in

leadership and a pioneer of the

Oxbridge Excellence in Education

Mentoring Scheme (Ghana). He is well

exposed to the financial market, having

research interest in real estate finance.

Member of the Cambridge University

Real Estate Finance and Investment

Society (CUREFIS), Student member of

the Royal Town Planning Institute

(RTPI)

Buertey Essegbey

Buertey

holds a

bachelor’s

degree in

business

adminstration

from central

university

college.

He has strong interests in the field of

investment, business viabilities,

untapped markets among others.

Ella Yeboah Amihere

Ella is

currently

pursuing a

degree course

in Bsc.

Business

Administration

(Majoring in Accounting) at Ghana

Technology University College. She

holds a certificate in Information

Technology Qualified Professional

from IPMC, Ghana. In addition, she

also has a fair knowledge of Baking,

Photography and Cosmetology.

Christopher Lartey

Chris is holder in

Bachelor of Law

(LLB) from

KNUST, Kumasi.

During the

2012/2013

academic year, he

was appointed as a member of the

Legal Affairs Commission of the

Students’ Representative Council

(SRC), KNUST during which he made

enormous contribution to several

judicial reforms and legal issues

handled by the commission.

Christopher has a flaming passion for

legal issues, business and investment.


Andrews Bediako Apau

Andrews holds

a degree in BSc.

Land Economy

from KNUST,

Kumasi, a

certificate in

Risk

Management

and an Advance Diploma in Project

Management from Institute of

Commercial Management, UK

He is a great team player with

extraordinary organizing skills and

experience gained during his tenure as

the Technical Head of National Union

of Presbyterian Students, Ghana,

KNUST Local.

Andrews has a blazing desire for

business and investment and corporate

leadership

Derek Haizel

Derek Haizel

Holds a BA.

(Hons) Religion

with a minor in

Political Studies

from KNUST,

Kumasi. He has

great interest in

Military Affairs, International Military

warfare, International politics, and the

study of religions, law, and Psychology.

Derek aspires to serve in the Military

one day, be a successful entrepreneur

with good relations or network with a

wide range of other professionals and

people.

Sandra Twum-Ampofo

Sandra holds a degree in BSc. Biological science from KNUST, Kumasi. She has lots of leadership experiences and

exposure through the various positions she held during her tertiary education days.

She served a senate member and Local National Union of Ghana Students’ (NUGS) representative for the college also for two year. In her first year of service as a NUGS representative, she became the NUGS academic committee secretary and in her second year of service she became the NUGS disciplinary committee chairperson. In addition, she served as a member for the sponsorship committee and the planning committee for the second and third edition for the KNUST NUGS Vice chancellors exellence awards.

Other positions she handled include Financial Secretary of University Choir, KNUST and also the main Organizer for the International Students’ dinner and awards night.

Nayram Mensah

Nayram

holds a BSc

degree in

Computer

Science from

KNUST,

Kumasi. His

expertise is

in

programming. He programs in java, c++

and vb. He now develops applications

for the android platform.

cedi sika investment club prospectus

Documents

club accounting concept

investment decisions

portfolio management

vision statement

mission statement

fund management

withdrawal of membership

governance structure