After its successful launch as a money market mutual Fund, Ideal Sika Fund officially was floated onto the Ghanaian market on 9th March 2017. With a minimum offering of 1, 000,000 shares at GHS 0.20 per share, the Fund is set to provide regular income while preserving capital and maintaining liquidity at all times by investing in a diversified portfolio of high quality fixed income securities and other money market instruments. Promoted by Ideal Capital Partners Limited, Ideal Sika Fund was officially incorporated on 29th December, 2015.
Ideal Sika Fund “the Fund”, an open-ended money market mutual fund, is structured to be a preferred invest- ment vehicle to both individual and institutional clients by creating an investment portfolio selected in line with its investment strategy. By its objective, the Fund creates a suitable opportunity for investors to pool their resources in order to enjoy the economies of scale that comes with it.
The Fund, designed to adopt a risk assessment module, would guide its selection of investments as it cre- ates wealth for its shareholders. Counter-parties shall be thoroughly screened for professional and technical competency, proven track record, adequate legal mandate, and business model viability etc., as a pre- req- uisite for doing business with the Fund. There shall be strict adherence to professional best practice in the management of the Fund by seeking the ultimate interest of the shareholder at all times. The Fund ultimately presents itself as a reasonably safe, reliable and exceptionally managed fund that creates shareholder value.
President, Groupe Ideal
INVESTMENT POLICY
In its investment allocations, the Fund shall be guided by an investment policy. The Fund will invest solely in money market instruments to achieve its investment objectives. The type of securities to be considered in the portfolio shall include the following:
- Government of Ghana securities
- Corporate Bonds
- Commercial papers
- Debentures
- Re-purchase agreements
- Certificate of deposit
- Fixed deposits
- Banker’s acceptance
- Other money market
The Fund may invest in other jurisdictions in the future as well as other collective investment schemes including those to be managed and operated by the Manager of the Fund or any of its associates. However, this would be done subject to a strict adherence to regulatory provisions…
In order to achieve prudent and efficient management of the Fund, the Fund Manager will maintain acceptable levels of liquidity which shall be at least 2% of the Fund’s assets in cash.
WHAT TO KNOW ABOUT THE FUND?
Q: What is Ideal Sika Fund?
The Fund: It is a short term collective investment scheme that pools funds from a group of investors known as shareholders and manages the fund on their behalf.
Q: What is the Fund’s main objective?
The Fund: The main objective of the Fund is to provide regular income to shareholders while preserving capital, giving competitive return and maintaining liquidity at all times by investing primarily in a diversified portfolio of high quality fixed income securities and other money market instruments.
Q: What can I use my Ideal Sika Fund Investment Account for?
The Fund: This investment account can be used to meet short-term and medium-term financial needs such as meeting regular household expenditure or providing for a child’s education.
Q: What are some of the benefits of being an Ideal Sika Fund Shareholder?
The Fund: Some of the benefits of investing in Ideal Sika Fund are:
- Liquid Services of a professional Fund Manager
- Enjoy the reward associated with a diversified portfolio
- Enjoy all interest income earned less expenses
- Relatively minimal initial investment amount
- Regular updates on status of your investment
- Superior returns
- Free and regular professional investment advice
- Information on investment can be provided over the telephone or other electronic platforms including
Q: Who can invest in Ideal Sika Fund?
The Fund: Ideal Sika Fund is suitable for individuals, corporate institutions, associations, investment clubs, religious organisations and educational institutions.
Q: How does the Fund operate?
The Fund: The Fund mobilises monies from shareholders and invests these funds on their behalf. The Fund earns interest income from fixed-income instruments and passes all its earnings less expenses to shareholders as “income distribution”. Interest earned on the Fund’s asset are prorated daily and distributed in accordance with the weight of ownership of assets in the Fund.
Q: How much do I need to start investing in Ideal Sika Fund?
The Fund: The initial minimum amount needed to join the Fund is GHS 50.00. Thereafter, a minimum regular contribution of GHS 10 investment can be made (daily, weekly or monthly).
Q: How do I invest in Ideal Sika Fund?
The Fund: Investors need to complete Ideal Sika Fund application form. The form can be obtained on any working day from the office located at No.2 Flower Road, East Legon, Opposite East Legon Police Station. Alternatively, the Form can be downloaded from the website: www.idealcapitalpartnersgh.com. The requirements include: a valid ID card (Voter ID, NHIS, Driving License, National ID or Passport), Two (2) passport size pictures.
Q: How do I make payments?
The Fund: Payments can either be cash or cheque into an Ideal Sika Fund account at the office of Ideal Capital Partners Limited: No. 2 Flower Road, East Legon, opposite East Legon Police Station. Payments can also be made at Cal Bank, FirsTrust Savings and Loans Company Limited, Ideal Finance Limited and Universal Merchant Bank. A Standing Order for regular monthly deductions into an Ideal Sika Fund investment account is also possible; issuance of post-dated cheques for a specified period (e.g. 1 year) is payable at the office of Ideal Capital Partners Limited; Bank wire transfers at any bank is also welcome (Please call us for instructions).
Q: Where are the funds of Ideal Sika Fund invested?
The Fund: The funds are invested primarily in money market instruments such as Government of Ghana securities, Commercial Papers, Bankers Acceptance, Certificate of Deposit and other fixed deposits.
Q: Who decide where the funds are to be invested?
The Fund: The Fund Manager is responsible for investment decisions of the Fund and does invest the funds in accordance with the investment policy and guidelines of the Fund.
Q: What returns do I make from investing in Ideal Sika Fund?
The Fund: The return of Ideal Sika Fund is benchmarked against the 91-Day Treasury bill rate. In the quest to achieve the best for shareholders, The Fund is guided by a rigorous asset selection and risk management criteria, which aids to invest in diversified portfolio of high quality fixed income securities. All returns are net of charges.
Q: What are the risks of investing in Ideal Sika Fund?
The Fund: All investments carry some degree of risk. The potential risks associated with Ideal Sika Fund are:
- Credit Risk: The possibility that the issuer of a security in the Fund’s portfolio will not be able to make expected interest payments and/or principal
- Interest Rate Risk: the fluctuations in the value of a fixed income security resulting from changes in the general level of interest rate in the
Q: What are the charges associated with Ideal Sika Fund investment account?
The Fund: The charges include:
- 0.75% per annum operating expenses
- 2.5% per annum management fee, which is charged on the total asset under management. This charge is indirect since it reflects in the share price.
- 0.25% custody fee. This charge is indirect since it reflects in the share price.
- There is no front load charge when you buy shares from the Fund.
- There is no back load charge when you make redemptions from your account.
Q: How do I get information on my Ideal Sika Fund investment?
The Fund: A confirmation will be received for any additional investments in the Fund Prospectus. A contract note will be received showing the number of Ideal Sika Fund shares bought. A quarterly and full year client’s statements and reports reflecting all monies received, purchases made at various prices, total deposits and accumulated shares and value of investment and returns made will be received.
Q: How do I monitor the performance of my investment?
The Fund: Prices shall be quoted periodically in the media. Individual investor can visit the website at www.idealcapitalpartnersgh.com for the prices and returns of the Fund. The value of an investment can be determined by multiplying the total number of Ideal Sika Fund shares owned by the prevailing bid price. A call can be made; emails sent or walk to the offices of Ideal Capital Partners Limited for information on an investment.
Q: How long do I hold my investment in the Fund?
The Fund: There is no minimum period. However, investors are encouraged to hold their investment for at least three (3) months to allow for benchmarking with the 91- Day Treasury Bill.
Q: Can I invest in Ideal Sika Fund if I have other investments?
The Fund: Yes! You can have other investments and still invest in the Fund. Ideal Sika Fund is another investment tool that allows investors to diversify their investment holdings while earning additional regular income. Everybody stands to benefit from investing in Ideal Sika Fund.
Q: How do I redeem part or all of my investment?
The Fund: A redemption/withdrawal form needs to be completed and submitted by hand, email or fax to Ideal Capital Partners Ltd. Forms can be obtained from our offices or downloaded from the website www.idealcaitalpartnersgh.com. Investors who will opt for other means of submitting redemption/withdrawal forms or letters shall be required to complete an indemnity form.
Shares to the tune of the amount being withdrawn will be sold for you at the prevailing price. Payment will be made by cheque within 48 hours after we receive your redemption/withdrawal form. Cheque amounts above GHS 5,000.00 cannot be opened. This may change from time to time depending on the directives from Bank of Ghana. All redemption/ withdrawal forms must be submitted with valid photo ID cards.
Q: Who is the Fund Manager?
The Fund: Ideal Sika Fund is managed by Ideal Capital Partners Limited. The Fund Manager has seasoned fund management professionals who are guided by integrity and professionalism in the investment management industry.