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
1 Cedi Sika Investment Club: PROSPECTUS JULY 2013
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
1 Cedi Sika Investment Club: PROSPECTUS JULY 2013
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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
9 Cedi Sika Investment Club: PROSPECTUS JULY 2013
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
10 Cedi Sika Investment Club: PROSPECTUS JULY 2013
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
11 Cedi Sika Investment Club: PROSPECTUS JULY 2013
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.
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12 Cedi Sika Investment Club: PROSPECTUS JULY 2013
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.
13 Cedi Sika Investment Club: PROSPECTUS JULY 2013
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.
14 Cedi Sika Investment Club: PROSPECTUS JULY 2013
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.