7th AGM of First Fund Ltd; Find out more..

Advert for firstbanc (1)NOTICE IS HEREBY GIVEN that the Seventh Annual General Meeting of

First Fund Limited (the “Company”) will be held at the British Council
Auditorium, Accra on Tuesday, June 6, 2017 at 8.30 a. m. to transact
the following business:
Ordinary Business
1. To receive the report of the Chairman.
2. To receive the report of the Chief Investment Officer / Fund
Manager.
3. To receive and consider for adoption the Reports of the Directors,
Auditors and the Financial Statements for the year ended December 31,
2016.
4. To confirm the appointment of new Directors to the Board.
5. To determine and approve the remuneration of Directors.
6. To authorize the Directors to determine/fix the remuneration of the
Auditors for the 2017 audit.
Dated this 26th day of April 2017.
BY ORDER OF THE BOARD

Signed
Brenda Semevo Afari (Mrs.)
Company Secretary

firstfund-perfomance

NOTE: A member of the company entitled to attend and vote is permitted
to appoint a proxy to attend and vote instead of him/her. A proxy need
not be a member of the Company. In order to be valid for the purpose
of the meeting, the PROXY FORM must be completed and deposited at the
Company’s registered office, 12th Floor, World Trade Centre,
Independence Avenue, Ridge, Ambassadorial Enclave, Accra, Ghana NOT
LESS THAN 48 HOURS before the appointed time of the meeting.

STARTING A HEDGE FUND IN GHANA

As we gradually approach the hedge fund era in Ghana, I’ll be writing series of articles on hedge fund  management and how fellow investors can take advantage of the opportunity. 

The most popular structured investment known to the common investor is the bank of Ghana Treasury bill. Perhaps because of its near zero risk feature. However, some other options exist such as the mutual funds and shares/stocks. All other investment options are mostly a variation of the three above and a typical example is the fixed deposit which takes after the T-bill.
In other jurisdictions, several more options are available with varying degrees of risk. Examples include bonds, hedge funds, derivatives etc. several variations of the above options exist and this largely depends on the investors risk level.
This piece however is to explore how we can add another investment option to the existing few, thus the Hedge Fund.
As implied by the name, a hedge fund is supposed to hedge against a particular risk. Thus, its purpose is to maximize investor returns and eliminate risk regardless of the whether the market is bullish or bearish.
Wikipedia defines a hedge fund as “at its most basic, a hedge fund is an investment vehicle that pools capital from a number of investors and invests in securities and other instruments” It is similar to mutual funds in many ways but is operationally different.
The following is worth noting about Hedge Funds:
1.      Hedge fund managers usually target high net worth individuals. Thus to invest in them, one has to meet certain net worth requirements making this type of investment only for the rich and wealthy.
2.       Unlike mutual funds that are limited by regulations as to where and what to invest in (which are mostly shares, money market and bonds) a hedge fund’s investment portfolio is limited only by its own policy. It can basically invest in anything anywhere – land, real estate, stocks, derivatives, currencies anywhere in the world
3.      Hedge funds have evolved from their traditional risk reduction to investor return maximization and therefore employ very sophisticated and sometimes aggressive investment and portfolio management strategies in order to achieve this objective. Their strategies are mostly speculative in nature and as they aim to always be ahead of the market. This activity increases their risk exposure in the market.
4.      Unlike mutual funds that rely exclusively on funds contributed by shareholders of the fund, a hedge fund may borrow funds to invest.  This investment technique is called leveraging or gearing and it could significantly increase return potential of the fund but also cause a greater risk of loss.
5.      Mutual fund managers are paid fees regardless of their funds’ performance. Hedge fund managers however receive a percentage of the returns they are able to generate for investors in addition to a fund management fee.
Hedge funds are known to have the ability to raise billions of dollars and are very efficient at investing. They return very high proceeds to investors and have become very popular in developed countries. Because they are not limited by geographical location, they are able to take advantage of financial markets all over the world.
Hedge fund industry has grown tremendously in the last decade from $625 billion in assets under management in 2002 to an industry record of $2.01 trillion in the closing months of 2011. This growth has been fueled mainly by investors who seek to diversify and manage their risk while ensuring that their returns are reliable overtime and Institutional investors have had the most impact for obvious reasons.
Indeed, institutions like SSNIT, insurance companies, investment firms, banks, and certain government intuitions will be key in the embellishment of a hedge fund in Ghana. The nature of the Ghanaian financial market and the of the entire sub region for that matter may require that most of the greater percentage of the hedge fund portfolio be done in highly developed markets like the US, Europe and Asia.
Courtesy: Abekah-Brown Abdallah K

Funds under the management of Licensed Fund Managers in Ghana

Courtesy: SEC GHANA
(Click to Enlarge)

The Mutual Fund Fallacy: Why Mutual Funds Are The Worst Investments

The last time I put my money in a mutual fund and made something substantial was about 3 years ago. (And that was EPACK – What I used to call the Praise-the-Lord Fund). Unlike what some analysts always advice, I do not diversify my portfolio with mutual funds managed by other firms. I have over the years evaluated some mutual funds in Ghana ,and thought the brilliance of their fund managers is enough to grow the fund. That did not happen. Young investors mostly start with mutual funds, others use the safe income Mutual funds as their “Savings Account” and argue that those are better options than what their banks offer them. The debate whether mutual funds are good investments continues. What is your take? Let’s watch the video and see why this man thinks Mutual Funds are the worst investments.

Top Ten Places EPACK Puts Your Money

Mutual Monday: Comparative Yields on Mfund and 91-day T-bill

Welcome to Another Mutual Monday – When I focus on mutual funds and their investors.
Below is a Databank-created Comparative Yields on Mfund and 91-day Treasury Bills from 2004 to 2012 along side comparison with the average saving rate.

List of Mutual Funds in Ghana and their Fund Managers: Mutual Monday Continues.

Welcome to another Mutual Monday.  In my previous posts, we looked at the facts behind some Mutual funds in Ghana. Below are the posts you may have missed;
1 .Mutual Monday: Investment Funds (Mutual funds & Unit Trusts) in Ghana.
2. Mutual Monday: What you must know about EPACK, the ‘Praise-the-Lord’ fund.
3. Mastering the Balanced Fund (B-Fund): The new focus on a ‘Mutual Monday’
4. How to master mutual funds; focus on the iFUND mutual fund
Per the request of some readers of this blog, I want to provide a more detailed list of the Mutual Funds and Unit trusts that exist in Ghana.

MUTUAL FUNDS/UNIT TRUSTS
FUND MANAGERS/BROKERS
1.      Aggressive Growth Fund
IC Securities (Ghana) Ltd
No. 2, 2nd Ridge Link
North Ridge
Accra
2.      Anidaso Mutual Fund
Anidaso Mutual Fund Limited
1st Floor, Cocobod Jubilee Bldg
Adum
P.O Box UPO 603
Kumasi
3.      Campus Mutual Fund
Campus Mutual Fund Limited
1st Floor, Former NPART Bldg
House No. D921/3, Asafoatse St
P.O Box GP 14198
Accra
4.      Christian Community Mutual Fund
Christian Community Mutual Fund Ltd.
7 Awulakpakpa Street
Osu
P.O Box GP 919
Accra
5.      Databank Ark Fund
Databank Ark Fund
No.61 Barnes Rd
Adabraka
PMB, Ministries Post Office
Accra
6.      DataBank Balanced Fund (B-Fund)
Databank Balanced Fund
No.61 Barnes Rd
Adabraka
PMB, Ministries Post Office
Accra
7.      DataBank Money Market Fund (M-fund)
Databank M-fund
No.61 Barnes Rd
Adabraka
PMB, Ministries Post Office
Accra
8.      EPACK Investment Fund
Databank EPACK Investment Fund Limited
No. 61 Barnes Rd
Adabraka
PMB, Ministries Post Office
Accra
9.      First Fund
First Fund Ltd
No. 6 South Liberia Road
P.O Box 1464
Osu
Accra
10. FirstBanc Heritage Fund
FirstBanc Heritage Fund
No. 6 South Liberia Road
P.O Box 1464
Osu
Accra
11. Freedom Fund
Liberty Capital (GH) Limited
Chez Julie Plaza, Community 10
P.O Box CS 8876
Tema
12. Gold Fund Unit Trust
Gold Fund Unit Trust
5 Mozambique Link
Opp. Royal Netherlands Embassy
P.O Box GP 14198
Accra
13. Gold Money Market Fund
Gold Money Market Fund
5 Mozambique Link
Opp. The Royal Netherlands Embassy
P.O Box GP 14198
Accra
14. HFC Equity Trust
HFC Equity Trust
6 Sixth Avenue, Ambassadorial Enclave
Ridge West
P O Box CT 4603, Cantonments
Accra
15. HFC Future Plan Trust
HFC Future Plan Trust
6 Sixth Avenue, Ambassadorial Enclave
Ridge West
P O Box CT 4603, Cantonments
Accra
16. HFC Real Estate Investment Trust (REIT)
HFC Real Estate Investment Trust
6 Sixth Avenue, Ambassadorial Enclave
Ridge West
P O Box CT 4603, Cantonments
Accra
17. HFC Unit Trust
HFC Unity Trust
6 Sixth Avenue, Ambassadorial Enclave
Ridge West
P O Box CT 4603, Cantonments
Accra
18. iFund Mutual Fund
iFund Mutual Fund Limited
Ecobank Capital
No. 5 2nd Ridge Link
North Ridge
Accra
19. Merban Fund
Merban Fund Limited (Merban Stock Brokers)
Merban House
44 Kwame Nkrumah Avenue
P.O.Box GP 401
Accra
20. NTHC Horizon Fund
NTHC Horizon Fund Limited (NTHC Brokers)
Martco House, Adabraka
P.O Box KIA 9563
Airport
Accra
21. SAS Fortune Fund
SAS Fortune Fund Limited
(Strategic Africa securities)
14th Floor, World Trade centre
Independence Avenue
P.O Box KA 16446
Accra
22. Stanbic Income Fund
Stanbic Investment Management Ltd.
Valco Trust Towers, Castle Road
P.O Box CT 2344, Cantonments
Accra