SAS FORTUNE FUND LIMITED
2015
ANNUAL REPORT
AND FINANCIAL STATEMENTS
SAS FORTUNE FUND LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS DECEMBER 31, 2015
SAS FORTUNE FUND LIMITED CORPORATE INFORMATION The Manager: SAS Investment Management Ltd. (SAS-IM) 14th Floor WTCA Building, Indep. Avenue, Accra Tel: +233-302-661770/2/008/880 +233-302-661900 Fax: +233-302-663999 E-mail:
[email protected] Website: www.sasghana.com Directors of the Fund: Maxwell Logan (Chairman) Togbe Afede XIV Apiigy Afenu Nana Soglo Alloh Paul Hammond The Custodian: Standard Chartered Securities Services Head Office P. O. Box 768 Accra Independent Auditors: Nexia Debrah & Co. BCB Legacy House # 1 Nii Amugi Avenue East Adabraka, Accra P. O. Box CT 1552 Cantonments, Accra Solicitors R. S. Agbenoto and Associates 4th Floor Total House 25 Liberia Road
REPORTS AND FINANCIAL STATEMENTS
Secretary: Accra Nominees Cedar House No. 13 Samora Machel Road Asylum Down, Accra
4
Corporate Information
4
Notice of Meeting
6
Chairman’s Report
8
Fund Manager’s Report
10
Report of the Directors
12
Statements of Directors’ Responsibility
13
Report of the Auditors
14-15
Statement of Investment Assets
16-17
Statement of Assets and Liabilities
18
Income and Distribution Account
19
Statement of Movements in Net Assets and Issued Shares
20
Portfolio Summary
21
Notes to the Financial Statements Schedule Report of the Custodian Information on Directors and Officers
22-25 26 27-28 29 REPORTS AND FINANCIAL STATEMENTS
CONTENTS
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SAS FORTUNE FUND LIMITED NOTICE OF MEETING NOTICE is hereby given that the 11th Annual General Meeting of the Members of The SAS Fortune Fund will be held on Thursday August 4, 2016 at the College of Physicians and Surgeons, Ridge, Accra at 10.30 a.m. to transact the following ordinary business:1. To receive and adopt the Audited Financial Statements for the year ended December 31, 2015 together with the Reports of the Directors and Auditors thereon. 2. To re-elect Directors. 3. To fix Directors’ Remuneration for the ensuing year 4. To authorise the Directors to negotiate and determine the remuneration of the Auditors for the ensuing year. BY ORDER OF THE BOARD ACCRA NOMINEES LIMITED COMPANY SECRETARIES Registered Office, Accra. Dated this 11th day of July, 2016 NOTE: A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote instead of him/her and such proxy need not be a member of the Fund.
REPORTS AND FINANCIAL STATEMENTS
A proxy form is attached. Executed forms of proxy should be deposited at the Registered Office of the Fund Manager, 14th Floor Accra World Trade Centre, Independence Avenue, Accra, not less than 48 hours prior to the time of the meeting.
6
SAS FORTUNE FUND LIMITED ADMISSION CARD To the 11thAnnual General Meeting of Members to be held on Thursday August 4, 2016 at the College of Physicians and Surgeons, Ridge, Accra, at 10.30 a.m. NOTE: a) This admission card must be produced by the shareholder or his proxy in order to obtain entrance to the Annual General Meeting. b) Shareholders or their proxies are requested to sign the admission card before attending this meeting.
…………………………………………………………………………………………………… Name of Shareholder
…………………………............ …………………………............
REPORTS AND FINANCIAL STATEMENTS
Signature Date
7
SAS FORTUNE FUND LIMITED CHAIRMAN’S REPORT
Dear Shareholders, It is with great pleasure that I present to you, the performance of your FUND for the year ended 31st December, 2015; a year in which the FUND was faced with stock market volatilities and macroeconomic challenges. Nevertheless, the SAS Fortune Fund, in spite of the harsh economic and investment climate, has been able to maintain a lead role over its benchmark Ghana Stock Exchange Composite Index. Operating Environment Global economies again fell short of expectations in 2015, slowing to a growth rate of 2.4 percent from 2.6 percent in 2014. The disappointing performance mainly reflected a continued growth deceleration in emerging and developing economies during post-crisis lows in commodity prices, weaker capital flows and subdued global trade. Global financial market volatility consequently rose noticeably in 2015 against the backdrop of slowing activity in large emerging economies, diverging monetary policies of major central banks, continued declines in commodity prices, and fragile liquidity conditions. Ghana’s economy as measured by GDP expanded by 3.9 percent in 2015 (Ghana Statistical Service), lower than 4 percent in 2014. This is the slowest growth rate in 20 years. Ghana’s economy also faced numerous challenges during the year 2015. Inflation was 17.70% as at December 2015 as compared to 16.40% in the previous year. The main drivers were attributable to the non-food group, utility price increases and an increase in transport fares. Similarly, the cedi also lost 18% of its value against the US dollar in 2015 but however remained relatively stable following the issue $1 billion Eurobond in October. The 91 days and 182 days Treasury bill rates also dropped by 11.28% and 7.45% at the end of 2015 as compared to end of 2014. These drop were at the backdrop of the issuer’s (Government of Ghana) appetite for relatively longer dated treasury bonds to finance medium to long term projects. REPORTS AND FINANCIAL STATEMENTS
The stock market which the SAS Fortune Fund predominantly invested also posted an abysmal performance during the year 2015. The Composite Index which is a benchmark performance index of the Ghana stock exchange recorded -11.77% at the end of 2015
8
compared to 5.04% recorded at the end of 2014. Not only did the Ghana stock exchange experience a poor performance during 2015; 15% capital gain tax on securities listed on the Ghana Stock Exchange was also introduced during the year even though the Ghana Securities Industry Association (GSIA) together with the Stock Exchange are petitioning its reverse. The effect of the 15% capital gain tax and 8% withholding tax on dividend is that investment into the Ghana stock exchange will remain unattractive. The Fund The total net asset value of SAS Fortune Fund Ltd at the end of the 2015 stood at GH¢2,971,909 and representing about 5% decrease over the previous year’s total net asset value of GH¢ GH¢3,126,788. The decrease is attributable to redemptions made by shareholders and partly a reflection of the poor performance of the Ghana Stock Exchange during the year since the Fund invested mainly in this market. The Fortune Fund made a year-to-date return of -0.71% as against the return on Ghana Stock Exchange Composite Index (GSE CI) of -11.77%. The Fund still outperformed its benchmark GSE CI during the year and remained an attractive investment vehicle for our shareholders and potential shareholders. In spite of the economic and environmental challenges, we believe and remain positive about the future prospect of the economy and the market in which the Fund operates. As Treasury bill rates fall as we are witnessing currently, there would be a corresponding increase in the activities in the stock market. I therefore recommend to you to buy more shares of SAS Fortune Fund since the price is low now. I would like to thank you for your trust and confidence you have in the Fund and in us over the past years. We believe that SAS Fortune Fund would not only give you a competitive return but also remain one of the best equity mutual funds in Ghana. REPORTS AND FINANCIAL STATEMENTS
Thank you. Maxwell Logan Chairman
9
SAS FORTUNE FUND LIMITED FUND MANAGER’S REPORT Dear Shareholders, It is our pleasure to once again welcome you to the 11th Annual General meeting of the SAS Fortune Fund Limited. The fund manager’s report will touch on the general economic landscape within which the fund operated and the outlook for 2016. Economic Outlook Global economic activities remained subdued in 2015 and Ghana’s economy was no exception. The domestic economy in the final quarter of 2015 witnessed signs of recovery stemming from a relatively stable inflation and exchange rate. The country recorded a growth rate of 4.9% as compared to 4.4% the previous year. The government’s economic policy resulted in a marginal increase in inflation to 17.70% in 2015 as compared to 17.00% in 2014. As part of the central bank’s measure to maintain a stable currency, the policy rate saw a marginal increase through 2015 and closed the year with 26.00%. Also, as part of measures to reduce government’s cost of borrowing and correct the yield curve, the benchmark 91-days and 182-days Treasury bill rates declined by 11.27% and 7.42% from 25.81% and 26.41% in 2014 to 22.90% and 24.45% in 2015 respectively. Whereas the 1 Year-Note and 2 Year Note rates increased marginally by 2.22% and 1.30% from 22.50% and 23.00% in 2014 to 23.00% and 23.30% in 2015 respectively. Stock Market Review Trading activities on the stock market recorded again a flinching pattern during the year. A total of 246,450,981 shares valued at GH¢247,649,862.21 were traded as compared to 169,864,133 shares valued at GH¢312,877,322 in 2014. This represents a 46% increase in volume traded and a 21% decrease in value traded. At the end of 2015, the total number of listed equities increased from 37 in 2014 to 44 in 2015. In all, ten (10) equities recorded price gains whilst nineteen (19) equities recorded losses. The top five (5) gainers for the year 2015 with significant change in prices were Aluworks (600%), Starwin (100%), Trust Bank Gambia (54.17%), Fan Milk (40%) and Enterprise Group (37.14%). Among the top five (5) losers, also with significant negative change in prices were Golden Web (66.67%), SIC Insurance (62.16%), UT Bank (60%), HFC Bank (40%) and Benso Oil (39.02%). REPORTS AND FINANCIAL STATEMENTS
Major activities on the market included the listing of five companies on the Ghana Alternatives Market (GAX), bonus issues by Societe Generale Ghana and Ecobank Transnational Inc. and also, the introduction of the Ghana Fixed Income Market (GFIM). Market Capitalization declined by 15% from GH¢67.3 billion in 2014 to GH¢57.1 billion in 2015.
10
Investment Objective and Policy The investment objective of the Fund is to achieve long-term capital growth for its shareholders, by investing a greater portion of its assets in companies with strong fundamentals, strong growth trends and strong income generation potential. The fund meets its liquidity obligations by investing in short term fixed income securities. Fund Performance The unit price of the fortune fund decreased by GH¢0.0036 to close the year at GH¢0.5064. The fund made a total return of negative 0.71% as compared to the GSE Composite index of negative 11.77%. Although, the fund’s return was not in the positive, it outperformed all the major indices including the GSE Composite Index (-11.77%), GSE Financial Stock Index (-13.98%), SAS Financial Index (-16.62%), SAS Manufacturing Index (-7.36%) and the SAS Index (-13.55%). As it is characterized with bearish market, investors with medium to low risk appetite cash out on their investments and this resulted in a reduction of the funds value from GH¢3,113,817 to GH¢2,971,909. It is however recommended that investors buy more when prices are low. The fund’s performance as compared to benchmark indices was as a result of prudent measures put in place to ensure that the fund is well diversified to reduce the impact of the bearish market experienced in 2015. We will continue to monitor the overall economic indicators and take advantage of investment opportunities with blue chip companies who have stable business models. We will also continue with the active re-balancing of the fund when necessary to generate value for shareholders. 2016 Outlook
REPORTS AND FINANCIAL STATEMENTS
The economic outlook in Ghana is brightening, with GDP growth gaining momentum in the first two months of 2016. Under the IMF deal in April 2015, Ghana is looking to slow public spending and reduce the budget deficit. Significant progress has been made in this direction in 2015, and the government is looking to reduce further fiscal deficit from 7.3% in 2015 to 5.75% in 2016. The stock market is expected to bounce back into action as we see the Government of Ghana Treasury bill rates fall and heightened interest of companies that want to be listed on the market. With your confidence in the fund, we will continue to ensure growth of the asset values of the fund. We will continue to invest the assets of the fund in high valued stock. We will continue to beat the GSE-CI benchmark and will continue to remain an attractive equity mutual fund in Ghana. Thank you Anthony A. Degbato Head of Asset Management
11
REPORT OF THE DIRECTORS TO THE MEMBERS OF SAS FORTUNE FUND LIMITED
We have the pleasure in submitting the annual reports and audited Financial Statements of SAS Fortune Fund Limited for the year ended December 31, 2015 and report thereon as follows: As directors, we are responsible for the preparation of financial statements for each financial year, which give a true and fair view of the state of affairs of the Fund and of the statement of operations for the year. In preparing these financial statements, we have selected suitable accounting policies and applied them consistently, made adjustments and estimates that are reasonable and prudent and followed Accounting Standards acceptable in Ghana.
REPORTS AND FINANCIAL STATEMENTS
As directors, we are also responsible for ensuring that the Fund keeps proper accounting records that disclose with reasonable accuracy at any time its financial position and performance. We are also responsible for safeguarding the assets of the Fund and taking reasonable steps for the prevention and detection of fraud and other irregularities.
Nature of Business The Company is licensed by the Securities and Exchange Commission to operate as an authorized mutual fund and is regulated by the Unit Trusts and Mutual Funds Regulations L.I 1695. There was no change in the nature of business of the company during the year under review. Financial Results & Income Distribution The results for the year are as set out in the attached financial statements. The Fund does not distribute income and thus all income earned is reinvested. Auditors Messrs Nexia Debrah & Co have indicated their willingness to continue in office as auditors in accordance with Section 134(5) of the Companies Act 1963 Act 179.
Director Director ACCRA 15th April 2016
12
SAS FORTUNE FUND LIMITED STATEMENT OF DIRECTORS’ RESPONSIBILITY
The directors are responsible for keeping proper books of accounts, which disclose with reasonable accuracy at any time the financial position of the company. The directors are also responsible for safeguarding the assets of the company and taking reasonable steps for the prevention and detection of fraud and other irregularities through the design and implementation of appropriate internal control structure.
The internal controls include a riskbased system of internal accounting and administrative controls designed to provide reasonable but not absolute assurance that assets are safeguarded and that transactions are executed and recorded in accordance with generally accepted business practices and the company’s policies and procedures. The financial statements are prepared in accordance with International Accounting Standards (IAS) and incorporate disclosures in line with the accounting philosophy of the company. The financial statements are also based on appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates.
REPORTS AND FINANCIAL STATEMENTS
Under the Companies Act 1963 (Act 179), the directors of the company are responsible for preparing in respect of each financial year, financial statements which give a true and fair view of the state of affairs of the company, and of its Profit or Loss and Cash Flows for that year in accordance with Accounting Standards acceptable in Ghana. In preparing these financial statements the directors are required to select suitable accounting policies and then apply them consistently, make judgments and estimates that they are reasonable and prudent.
13
REPORT OF THE AUDITORS TO THE MEMBERS OF SAS FORTUNE FUND LIMITED
We have audited the Financial Statements of SAS Fortune Fund Limited for the year ended 31st December 2015 which are presented herein from pages 16 to 25. The principal accounting policies used in preparing these financial statements are set out on pages 22 to 25. Our report is made solely to the company’s members, as a body, in accordance with section 133 of the Companies Act 1963 (Act 179). The purpose of our audit is to enable us to make a statement to the members of the company on those matters specifically required by law to be mentioned in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its members as a body for our audit work, our report, or the opinions we have expressed herein. RESPECTIVE RESPONSIBILITIES OF THE DIRECTORS AND AUDITORS The Company’s Directors acknowledge on page 13 their responsibility for the preparation and fair presentation of these Financial Statements in accordance with accounting standards applicable in Ghana and for the detection and prevention of fraud or other irregularity. Our responsibility as Auditors is to express an independent opinion on the Financial Statements based on our audit.
REPORTS AND FINANCIAL STATEMENTS
BASIS OF OPINION We conducted our audit in accordance with auditing standards. An audit includes examination on a test basis, of evidence relevant to the amounts and disclosures in the Financial Statements. It also includes an assessment of the significant estimates and judgment made by the Directors in preparing these Financial Statements, and of whether the accounting policies are appropriate to the company, consistently applied and adequately disclosed.
14
REPORT OF THE AUDITORS TO THE MEMBERS OF SAS FORTUNE FUND LIMITED
We planned and performed the audit so as to obtain all the information and explanation, which we considered necessary in order to provide us with sufficient evidence and reasonable assurance that the Financial Statements are free from material misstatements. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the Financial Statements and also had regard to the matter referred to below. OPINION In our opinion, proper books have been kept and the financial statements which are in agreement therewith present fairly, the financial position of the company as at December 31, 2015 and of the results of operations for the year then ended and comply with the International Accounting Standards, the Unit Trusts and Mutual Funds Regulations L.I 1695 and the Companies Act, 1963 (Act 179).
Signed on behalf of Nexia Debrah & Co. (ICAG/F/069) Chartered Accountants BCB Legacy House # 1 Nii Amugi Avenue East Adabraka, Accra REPORTS AND FINANCIAL STATEMENTS
By K. Manu-Debrah (ICAP/P/1264) 18th April 2016
15
SAS FORTUNE FUND LIMITED
STATEMENT OF INVESTMENT ASSETS AS AT DECEMBER 31, 2015
Number of Shares
2015 Market Value GH¢
2014 Market Value GH¢
61,745
8,644
1,235
43,470
319,505
228,217
60,094
60,094
60,695
14.29
60,549
424,449
587,769
1.05
116,320
31,406
30,534
Ghana Commercial Bank (GCB)
17.79
139,422
528,409
738,937
Standard Chartered Bank (SCB)
8.28
15,096
246,065
307,204
SG-SSB Bank (SG-SSB)
1.72
63,958
51,166
58,144
1,341,589
1,783,282
Consumer Products
0.82
Patterson Zochonis (PZ)
0.71
61,812
21,016
18,543
Unilever (UNIL)
0.11
400
3,400
4,280
24,416
22,824
260,400
195,300
QUOTED EQUITY
%Net Assets
Manufacturing
0.29
Aluworks (ALW)
0.29
Dairy Products
10.75
Fan Milk Ltd (FML)
10.75
Banking
45.15
CAL Bank (CAL) Ecobank (EBG) Ecobank Transnational (ETI)
REPORTS AND FINANCIAL STATEMENTS
Petroleum
12.36
Ghana Oil (Goil)
8.79
186,000
Total Ghana Limited (Total)
3.57
20,800
106,080
126,880
366,480
322,180
117,346
Insurance
5.96
Enterprise Insurance (EIC)
5.42
67,055
160,932
State Insurance Company (SIC)
0.54
113,500
15,890
41,995
176,822
159,341
2,237,456
2,517,079
TOTAL QUOTED EQUITY
16
2.02
73.35
1,010,221
SAS FORTUNE FUND LIMITED
STATEMENT OF INVESTMENT ASSETS AS AT DECEMBER 31, 2015 FIXED INCOME/ SHORT TERM
%Net Assets
Number of Shares
2015 Market Value GH¢
2014 Market Value GH¢
91 Day Treasury Bills
9.57
284,228
422,808
182 Day Treasury Bills
14.77
438,731
114,955
24.34
722,959
537,763
0.31
9,286
85,154
24.65
732,245
622,917
100.00
2,969,701
3,139,996
TOTAL FIXED INCOME/SHORT-TERM TOTAL INVESTMENTS
REPORTS AND FINANCIAL STATEMENTS
Cash at Bank and on Call
17
SAS FORTUNE FUND LIMITED STATEMENT OF ASSETS AND LIABILITIES AS AT DECEMBER 31, 2015 ASSETS
Notes
Sundry Accounts Receivable (Schedule A)
2015 GH¢
2014 GH¢
19,497
11,039
Investment Assets
2,969,701
3,139,996
Total Assets
2,989,198
3,151,035
Accrued Expenses Payable Others (Schedule B)
17,289
7,587
-
16,660
Total Liabilities
17,289
24,247
2,971,909
3,126,788
1,401,031
1,430,166
LIABILITIES
NET ASSETS SHAREHOLDERS’ FUND
REPORTS AND FINANCIAL STATEMENTS
Capital Accounts Accumulated Income Account
1,570,878
1,696,622
Balance at December 31st
2,971,909
3,126,788
Director Director ACCRA 15th April 2016
18
8
SAS FORTUNE FUND LIMITED INCOME AND DISTRIBUTION ACCOUNTS FOR THE YEAR ENDED AS AT DECEMBER 31, 2015 Notes
2015 GH¢
2014 GH¢
123,471
106,738
Investment Income Dividend Income Interest Income
2
171,349
162,840
Other Income
3
19,214
12,097
314,034
281,675
61,428
63,924
Total Investment Income Expenses Management Fees Other Expenses
4
Total Expenses Net Investment Income before Capital Gains/ (Losses) Net Realized Capital Gain
34,058 97,982
215,627
183,693
5
8,764
-
224,391
183,693
7
(152,026)
270,733
72,365
454,426
Net Investment Income Net Unrealized Capital Gain/(Loss)
36,979 98,407
Net Income/ (Loss) Transferred to Accumulated Income Account
Balance at January 1st
2015 GH¢
2014 GH¢
1,696,622
1,459,529
Redemptions/Withdrawals
(198,109)
(217,333)
Balance before Transfers
1,498,513
1,242,196
72,365
454,426
1,570,878
1,696,622
REPORTS AND FINANCIAL STATEMENTS
ACCUMULATED INCOME ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2015
Net Income Transferred From Income and Distribution Account Balance as at 31st December
19
SAS FORTUNE FUND LIMITED STATEMENT OF MOVEMENT IN NET ASSETS FOR THE YEAR ENDED DECEMBER 31, 2015 INCREASE IN NET ASSETS
2015 GH¢
2014 GH¢
215,627
183,693
8,764
-
From Operations: Net Investment Gains Before Capital Gains Net Realised Capital Gain Net Unrealised Gain
(152,026)
270,733
(Loss)/Gains on Redemptions
(198,109)
(217,333)
Net Increase From Operations
(125,744)
237,093
367,712
775,819
(396,847)
(478,879)
(29,135)
296,940
From Capital Transactions: Proceeds From Issue of Shares Cash outflow for Shares Redeemed Net cash Inflow/ (outflow) for Capital Transactions Net Increase/ (Decrease) In Assets
(154,879)
534,033
Net Assets at January 1st
3,126,788
2,592,755
Net Assets at December 31st
2,971,909
3,126,788
STATEMENT OF MOVEMENT IN ISSUED SHARES FOR THE YEAR ENDED DECEMBER 31, 2015
Balance at January 1st REPORTS AND FINANCIAL STATEMENTS
Issue of Shares
Redemption of Shares Net Assets at December 31st
20
2015 No. of Shares
2014 No. of Shares
6,249,518
6,030,322
724,580
1,669,396
6,974,098
7,729,718
(1,140,207)
(1,480,200)
5,833,891
6,249,518
SAS FORTUNE FUND LIMITED PORTFOLIO SUMMARY AS AT DECEMBER 31, 2015 Position 31/12/14 No. of Sh.
Mkt Value Position 31/12/14 GH¢
Position 31/12/15 No. of Sh.
Mkt Value Position 31/12/15 GH¢
(Sales)/ Purchases During Yr
Capital Gain (Loss) GH¢
ALW
61,745
1,235
61,745
8,644
-
7,409
Equity
CAL
60,094
60,695
60,094
60,094
-
(601)
EBG
77,338
587,769
60,549
424,449
(127,596)
(35,724)
EGL
67,055
117,346
67,055
160,932
-
43,586
ETI
109,050
30,534
116,320
31,406
-
872
FML
43,470
228,217
43,470
319,504
-
91,288
GCB
139,422
738,937
139,422
528,409
-
(210,528)
GOIL
186,000
195,300
186,000
260,400
-
65,100
PZ
61,812
18,543
61,812
21,016
-
2,473
SCB
15,096
307,204
15,096
246,064
-
(61,139)
SG-SSB
58,144
58,144
63,958
51,167
-
(6,978)
113,500
41,995
113,500
15,890
-
(26,105)
20,800
126,880
20,800
106,080
-
(20,800)
400
4,280
400
3,400
-
(880)
1,013,926
2,517,079
1,010,221
2,237,456
(127,596)
152,026
(1,710,179)
(1,463,811)
806,900
773,645
SIC TOTAL UNIL At Market
Gain/(Loss) Reserve At Cost
REPORTS AND FINANCIAL STATEMENTS
Balance on Unrealized
21
SAS FORTUNE FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2015 1. Accounting Policies
The following is a summary of accounting policies consistently followed by the Fund in the preparation of its financial statements. The preparation of the Financial Statements is in conformity with generally accepted accounting principles. a) Securities Valuation Securities listed on the Ghana Stock Exchange are valued at the last quoted official market price at the end of the year. Unlisted securities are valued at the average of the latest bid and offer prices. Fixed-income securities are valued at the historical cost plus accrued interest. Where market prices are not readily available or the values as determined are not considered to represent true market values, a fair value is determined by the Manager under the direction of the Board of Directors of the Fund. b) Security Transactions Security transactions are recorded on a trade date basis. Realized Capital Gains and Losses are determined on an identified cost basis. c) Income Interest income is recognized on an accrual basis. Dividend Income is recorded if the qualifying date falls within the year under review. Other income is recorded when received rather than earned. d) Foreign Exchange The financial statements have been prepared using the Ghana Cedi as the functional currency. All foreign currency transactions are converted into Ghana Cedis at the rate of exchange ruling at the date of the transaction. Balances denominated in foreign currencies are translated into Ghana Cedis at the rate of Exchange ruling on the Balance Sheet date.
REPORTS AND FINANCIAL STATEMENTS
2. Interest Income
Interest on Call Deposit Interest on fixed Deposit
22
2015 GH¢
2014 GH¢
-
849
171,349
161,991
171,349
162,840
SAS FORTUNE FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2015 2015 GH¢
2014 GH¢
3. Other Income Sundry Income Exit Charges (Refer to Note 11)
11,358 7,856
12,097
19,214
12,097
Advertising
1,337
906
Custodian Fees
6,981
7,300
Audit Fee
9,000
7,000
4. Other Expenses
Secretarial Fees
2,585
2,350
AGM Expenses
17,076
14,153
Postage
-
2,349
36,979
34,058
Proceeds from Sale of Investment (Shares)
136,360
-
Average Costs of Investment (Shares) Sold
(33,255)
-
Transfer from Unrealised Gain/ (Loss)
(94,341)
-
876
-
5. Realised Gain on Investments
6. Redemptions/Withdrawals
REPORTS AND FINANCIAL STATEMENTS
Consideration Gain/(Loss) Cost to Paid to Reserves Capital 2015 596,956 (198,109) 396,846 ====== ======= ====== 2014 696,212 (217,333) 478,879 ====== ====== ======
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SAS FORTUNE FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2015 2015 GH¢
2014 GH¢
1,710,179
1,439,446
(152,026)
270,733
(94,341)
-
1,463,812
1,710,179
7. Unrealized Gain/ (Loss) Reserve (Memorandum only) Balance at January 1st Unrealized Gain / (Loss) for the Year Charged to Income & Distribution A/c Realized Gain on Sale of Investment Transferred to Realized Gain Balance at December 31 8. Capital Accounts
Balance at January 1st Issue of Shares Redemption of Shares Balance At December 31st
2015 No. of Shares
2015 GH¢
2014 No. of Shares
2014 GH¢
6,249,518
1,430,166
6,030,322
1,133,226
724,580
367,712
1,699,396
775,819
(1,140,207)
(396,847)
(1,480,200)
(478,879)
5,833,891
1,401,031
6,249,518
1,430,166
9. Taxation Under current Ghanaian legislation, mutual funds are not subject to taxes on income or capital gains. However, the required taxes are paid for investments done in jurisdictions where taxes on income or gains on investments apply. 10. Investment Transactions REPORTS AND FINANCIAL STATEMENTS
Total sale of investments in quoted equity was GH¢136,360. (2014: Nil).
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SAS FORTUNE FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2015 11. Redemption/ Exit Fees
The Fund is a long-term growth fund and its objective is to encourage shareholders to remain in the fund for at least three (3) years. The following withdrawal charges apply when investors redeem all or part of their shares within the first three (3) years. REDEMPTION WITHIN YEAR(S)
CHARGES
1
3%
2
2%
3
1%
3+
None
12. Transactions through Affiliates
The entire Fund’s equity transactions were done through Strategic African Securities Limited, a company related to SAS Investment Management Limited, the Manager of the Mutual Fund. 13. Commissions and Levies
Total Commissions and Stock Exchange Levies was Nil (2014 Nil). 14. Comparative Figures
REPORTS AND FINANCIAL STATEMENTS
Aspects of the presentation relating to the prior year have been restated to make them comparable to the current year presentatio
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SAS FORTUNE FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2015 2015 GH¢
2014 GH¢
Others
8,852
394
8% Investment Tax Withheld
7006
7006
SCHEDULES
A. RECEIVABLES
Accounts Receivable – SASIM
3,639
3,639
19,497
11,039
B. LIABILITIES Accrued Expenses Payable Custody Fees
1,190
-
Secretarial Fees
7,099
587
Audit Fees
9,000
7,000
17,289
7,587
Directors’ Fees Accrued
-
16,660
Outstanding Redemptions
-
-
-
16,660
REPORTS AND FINANCIAL STATEMENTS
Others
26
27
REPORTS AND FINANCIAL STATEMENTS
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REPORTS AND FINANCIAL STATEMENTS
SAS FORTUNE FUND LIMITED DIRECTORS AND OFFICERS INFORMATION
The business and affairs of the Fund are managed by the Fund Manager under the direction of the Fund’s Board of Directors and the Fund’s officers. The table below lists the directors and officers of the Fund and their principal occupations, other directorships and their affiliations. Name, Address
Position
Time with Fund
Occupation
Other Affiliates
Maxwell Logan (48) Plot.5 & 8, Tabon Street Sedco House Annexe North-Ridge, Accra
Director
Since Inception (June 2004)
Legal Practitioner
Logan and Associates Office Support Project New Beach Realtors Ltd.
Nana Soglo Allo IV (56) No. 44 Nii Bonnie St
Director
August 2013
Legal Practioner
Alloh & Partners P. O. Box NT 478
Independent Directors
Dzorwulu Director
August 2013
Banker
Greenfield Microfinance P.O Box DS 864 Accra
Interested Directors Togbe Afede XIV (57) P.O Box KA 16446 Accra
Director
Apiigy Afenu (56) M7 Manet Cottage Spintex Road Baatsona
Director
Since Inception (June 2004)
Investment
November 2009
Chartered
Banker
Accountant
Strategic African Securities SASIM Strategic Initiatives Aluworks (Gh) Ltd Procredit National Theatre Bank of Ghana Accra Hearts of Oak SAPP Strategic African Securities Africa World Airline Accra Hearts of Oak
REPORTS AND FINANCIAL STATEMENTS
Paul Hammond (63) M65 Jam Close Community 20 Tema
Accra
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SAS FORTUNE FUND LIMITED PROXY FORM
I/We………………………………………. of …………………………………………….......... being a Shareholder of the above-named Company hereby appoint …………………………………………….. of …………………………………………….......... or failing him…………………………………………….. of…………………………………… as my/our Proxy to vote for me/us and on my/our behalf at the 11th Annual General Meeting of the Shareholders to be held on Thursday August 4, 2016 at the College of Physicians and Surgeons, Ridge, Accra or at any adjournment thereof. I/ We direct that my/our vote(s) be cast on the specified resolution as indicated by an X in the appropriate space. RESOLUTIONS 1. To receive and adopt the Financial Statements of the Fund for the year ended December 31, 2015 and the Reports of the Directors and Auditors thereon. 2. To re-elect Directors retiring by rotation: Mr. Maxwell Logan Mr. Apiigy Afenu 3. To approve Directors’ remuneration
REPORTS AND FINANCIAL STATEMENTS
4. To authorize the Directors to fix the remuneration of the Auditors.
.……………………………………….. Shareholder’s Signature
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FOR
AGAINST
Kindly visit our CLIENT SERVICE CENTRE at the ground oor of the Convention Centre (World Trade Centre, Accra) for all;
ENQUIRIES, REDEMPTIONS, CHEQUE COLLECTION & DEPOSITS for INVESTMENTS.
14th Floor, World Trade Centre, Independaence Avenue, Accra P.O. Box KA 16446, Accra, Ghana t. +233 302 661770/ 661900/ 661008 f. +233 302 663999 e.
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