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

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Cedi Sika Investment Club: PROSPECTUS JULY 2013

Contents
RESPONSIBILITY STATEMENT ............................................................................................................. 1 CONTACTS ......................................................................................................................................... 1 PART I: OVERVIEW OF THE CLUB........................................................................................................ 2 1.1 1.2 1.3 1.4 1.5 1.6 Legal Status ......................................................................................................................... 2 Vision Statement ................................................................................................................ 2 Mission Statement ............................................................................................................... 3 Goals .................................................................................................................................... 3 Concept ............................................................................................................................... 3 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 Members 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 PROMOTERS12 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: cedisika@aol.com Website: http://cedisika.blogspot.com/ Tel: 054 7568630 026 6309021 020 7630917

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Cedi Sika Investment Club: PROSPECTUS JULY 2013

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 clubs 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 individuals 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, biannually 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. Each members subscription will purchase for that member an appropriate number of units according to the unit value declared by the treasurer/investment committee.

(b)

(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 Members 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 clubs 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. 7
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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

GOVERNING BOARD
PATRONS

EXECUTIVE COMMITTEE

RESEARCH AND INVESTMENT COMMITTEE

INFORMATION TECHNOLOGY COMMITTEE

WELFARE & EVENT COORDINATING COMMITTEE

AUDIT COMMITTEE

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. 8
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 renomination.

4.2 Executive Committee (Officers)

i. The Executive Committee shall have the sole authority over the day-today 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 9
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 Clubs 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 10
Cedi Sika Investment Club: PROSPECTUS JULY 2013

activities online to ensure all members participation in clubs 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

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

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.

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.

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.

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Cedi Sika Investment Club: PROSPECTUS JULY 2013

Kenneth Appiah DonkorHyiaman

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 bachelors 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.

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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.

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Cedi Sika Investment Club: PROSPECTUS JULY 2013