2017 ANNUAL REPORT AND FINANCIAL STATEMENTS
2017 ANNUAL REPORT AND FINANCIAL STATEMENTS
SAS FORTUNE FUND LIMITED
3 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 (Removed on 6th July 2017) Nana Soglo Alloh (Removed on 6th July 2017) Paul Hammond
The Custodian: Standard Chartered Securities Services Head Office P. O. Box 768 Accra
Independent Auditors: Nexia Debrah & Co. (Chartered Accountants) 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
Secretary: Accra Nominees Cedar House No. 13 Samora Machel Road Asylum Down, Accra
4 SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 5 4 8-9 10-15 16-17 18-21 22-23 24 25 26 28 29-37 38-40 41
CONTENTS Corporate Information Information Corporate Chairman’s Report Fund Manager’s Report Report of the Directors Report of the Auditors Assets of Investment Statement Income of Comprehensive Statement of Financial Position Statement of Cash Flows Statement Portfolio Summary the Financial Statements to Notes Report of the Custodian Information on Directors
SAS FORTUNE FUND LIMITED NOTICE OF MEETING
NOTICE is hereby given that the 13th Annual General Meeting of the Members of the SAS Fortune Fund will be held on Thursday July 26, 2018 at the British Council Hall, Liberia Road, Accra at 12.30 p.m. to transact the following ordinary business:-
To receive and adopt the Audited Financial Statements for the year ended December 31, 2017 together with the Reports of the Directors and Auditors thereon.
1. To appoint Directors.
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 June, 2018
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.
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 REPORT AND FINANCIAL STATEMENTS 7 Date …………………………...... …………………………...... Signature ……………………………………………………………………………………………… Name of Shareholder NOTE: obtain to in order or his proxy shareholder by the must be produced admission card This the Annual General Meeting. entrance to this attending before card sign the admission to requested are or their proxies Shareholders meeting. To the Annual General Meeting of Members to be held on be held Annual General Meeting of Members to the To Hall, Liberia Road, Accra, July 26, 2018 at the British Council Thursday at 12.30 p.m. SAS FORTUNE FUND LIMITED FUND FORTUNE SAS CARD ADMISSION CHAIRMAN’S REPORT
Dear Valued Shareholders, It is with immense pleasure that I welcome you to the 13th Annual General Meeting of SAS Fortune Fund Ltd. and what a remarkable journey we have had.
All in all, 2017 was a good year for SAS Fortune Fund and we have grown the fund by more than doubling the assets under management. Not only that, we have the happy news of having also made good strides in our constant quest to optimize returns for you our shareholders.
My report is to share with you the operating environment the Fund was exposed to and what our team has been able to achieve during the year 2017.
Operating Environment The global economy has strengthened as protracted fragilities resulting from global financial crisis have subsided. Global economic growth reached 3 per cent in 2017, the highest growth rate since 2011. The growth rate is expected to remain steady for 2018 even though it will remain unevenly distributed across countries and regions. Economic prospects for many commodity exporters such as Ghana will remain particularly challenging as insignificant growth in per capita GDP is anticipated in several parts of Africa, Western Asia, and Latin America and the Caribbean.
Ghana’s economy also ended on a good note in the year 2017. GDP grew in annual terms by 8.50% in 2017 which is the fastest growth rate in five years. The impressive growth seemed to have been principally fueled by production output in oil and gas sector. Again, an ease in inflationary pressures stimulated household consumption during the year. Further, the elevated prices for oil and gold which form Ghana’s key commodity exports have also spurred GDP growth. It is anticipated that these growth driver commodities (oil, gold and cocoa) will continue to be the backbone of Ghana’s economy.
A favorable global commodity price outlook, together with an anticipated increase in oil production should bolster economic activity in 2018. Inflationary pressures are expected to further reduce in 2018 which will boost domestic demand. In the monetary area of the economy, declining inflation, supported by a fall in interest rates and the Ghana cedi’s stability during the year 2017 propelled the Bank of Ghana to reduce policy rate from 25.50% in December 2016 to 20% in December 2017. Similarly, the 91-day Treasury bill rate closed the year at 13.35% from 16.43% in December 2016 whilst the 182- day treasury bill rate declined by 376 basis points to end the year at 13.88%, all of which have contributed to fueling a comparative climate of buoyancy.
The Ghana Stock Exchange Composite Index which measures the return on all shares listed on the Ghana Stock Exchange recorded 52.73% at the end of the year 2017 as compared to -15.33% and -11.77 in the preceding years of 2016 and 2015 respectively. The 52.73% 8 performance of the stock market was the best performance over the last 3 years. This improved performance in the GSE Composite Index seemed to have been propelled by the afore- mentioned improvements in the general economic indicators, the re-emergence of investor confidence in the equities listed on the Ghana Stock Exchange and the removal of tax on gains made from the Ghana Stock Market. The Stock Market is expected to remain bullish at least up to the first half of 2018 as we expect to witness falling fixed income rates and experience other economic phenomena which we expect will drive the current trends. We envisage vibrancy in activities in equities on the Ghana Stock Market as new entrants like MTN and other key corporates in the Ghanaian economy are expected to join the bourse.
The Fund The SAS Fortune Fund also posted an impressive performance during the year 2017 as it mimicked the performance of the securities traded on the Ghana Stock Exchange. The Fund made a year to date return of 43.16% at the end of 2017 compared to 6.30% and -0.71% in 2016 and 2015 respectively. The Fund out-performed the average return posted by all Equity Mutual Funds in Ghana in 2017 and was the favorite Fund for both existing and new shareholders during the year. The total net assets of the Fund grew by 106% during the year 2017 from GHS 3.396 million to GHS 6.981 million as compared to 14.30% growth in 2016. The Fund is expected to continue to do well in 2018 as we expect the Stock Market to remain bullish during the year. The Fund has started on a good note by posting a return of 19.77% at the end of first quarter 2018. Last year, I invited you to buy more shares of the Fund. I believe the shareholders who did will be smiling at the return posted by the Fund during the year. Again, last year, we were determined to grow the Fund; we achieved an unprecedented rate of over 100% growth of the Fund during the year 2017 but we are not resting as we determine to do even more. In this regard, we will continue to provide the leadership and the strategic direction for company and to see it grow and remain the best mutual fund in Ghana.
Conclusion I would like to extend my utmost appreciation to my colleague Directors for their leadership and direction as I invite them and the shareholders to join me applaud the Fund Management team for their tireless and determined application to making the fund grow into the very best in all respects. I am very proud of the support we have received in the past year from the entire SAS staff. in the past year. Without their support and taking up and playing various support roles with such distinction, we would in all probability not have achieved this success.
Last but even most important, we, the Directors, Fund Management Team and the entire SAS staff would like to thank the shareholders for their investiture of trust in not only choosing but keeping faith with us over the past years. We pledge to you our continued exertion and best efforts to keep our SAS Fortune Fund the best performing equity mutual fund in Ghana.
Thank you very much and may God bless us all.
Maxwell Logan, Chairman
9 SAS FORTUNE FUND LIMITED FUND FORTUNE SAS REPORT MANAGER’S FUND Dear Shareholders, the 13th Annual General meeting of the SAS to you Once again, we dearly welcome the general economic with you we would share In this report, Fortune Fund Limited. of the the performance within which the Fund operated, conditions and environment Fund and our outlook for 2018. Economic Review domestic product with gross for 2017 ended on a high note, Global economic growth the since improvement cyclical widest the in world the of much over accelerating (GDP) 2016 in 3.70% to compared as 8.50% by grew GDP Ghana’s decade. the of beginning This years. in the past five recorded rate as the highest growth 2017 GDP rate rendering witnessed year The the oil and gas industry. to has been mostly attributed in growth surge in monetary reduction further in a resulting policy in monetary tightening a continued of 25.50% as at the a rate points from by 500 basis MPC reduced (MPC). The policy rate year. the previous from 21.50% reduction 20% in 2017, representing end of 2016 to decreasing Bill Rate Treasury benchmark with the further dropped Similarly, rates interest 13.35% and 13.88% for the 91-day and 182 day bills to 16.43% and 17.64% in 2016 from for year the previous from decrease a 19.00% and 21.00% represents This respectively. encourage continued to Government respectively. the 91-day and 182-day bills rate note although the 1-year and also smoothening the yield curve securities longer dated year with to close the significantly by 29.00% and 22.00% declined rates note and 2-year 15.00% and 17.50% respectively. Review Market Stock performance bullish experienced Africa in bourses most like Market Stock Ghana The 52.73%, being the second highest an impressive recording Index with the GSE Composite the end of the the Malawi (56.00%). At after Exchange of returns Stock in Africa in terms the previous 44 from to at 43 as compared stood equities of listed number the total year, on the Ltd of the delisting of UT Bank in number was as a result reduction The year. returns remarkable losses, 19 equities recorded 11 equities recorded bourse. Whereas with Benso Oil Palm Plantation of 194.00% (BOPP) being the lead gainer with a return gainers for the five top of 14.00%. The and Aluworks being the least gainer with a return Benso Oil Palm Plantation 2017 were (144.55%), year (194.00%), Ghana Oil Company Ltd Oil Company (85.33%) and Total Bank (106.80%) HFC Bank Ltd Chartered Standard Tullow (60.00%), Ltd Company Mechanical Lyod losers were five top (76.50%). The Ltd (16.67%), SIC Insurance Drug Manufacturing Ltd Ayrton (36.20%), Oil Company Ltd (9.09%). (16.67%) and PZ Cussons Ghana Ltd Company Ltd
SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 10 SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 11 The Ghana bourse in year 2017 was also characterized with quite a number of halts in trading a number of halts in trading with quite 2017 was also characterized Ghana bourse in year The (CLYD), Ltd Ghana Clydestone (ACI), as African Champion Ltd activities of companies such Ltd Kitchenware (GWEB), Pioneer Ltd (CPC), Golden Web Company Ltd Cocoa Processing (TRANSOL). Ltd Solutions Ghana (PKL) and Transaction and Strategies Objectives Investment shareholders, its for growth capital long-term achieve to is Fund Fortune SAS of objective The fundamentals, strong portion of its assets in companies with strong a greater by investing objective, In line with the investment income generation potential. and strong trends growth risk also intensified portfolio and a healthy, diversified the Fund Manager maintained management activities. Consequentially, the of the fund all areas management practices in FML during the period of Fund’s holdings in in GOIL and the size Fund Manager increased under review. of the Fund Performance The of 2017, the end 43.16% at of return annual made a remarkable Fund Fortune SAS The bullish of all equity mutual funds in Ghana. The return thus outperforming the average resulting in a confidence investor and the fund both increased performance of the market with year close the GHC3,396,934.00 in 2016 to base from in the fund’s asset 106% growth GHC6,981,925.00 in 2017. as level an appreciable assets of the fund to the grow to It is the Fund Manager’s objective Fund Management Team in the 12th Annual General Meeting. The with shareholders shared confidence in the Fund. the investor and increase retain is poised to 2018 Outlook and well supported are cycles economic and market that the trending projects Research SAS in environment macro-economic in 2018. The be positive to global equity returns predicts rates interest expect We year. the previous from different be markedly to 2018 is not expected in remain competitive down in line with inflationto trend term, and for equities to in the short market. the investment companies on the Ghana bourse with in the number of listed an increase anticipate We see an to also expect We giant MTN on the Ghanaian market. telco listing of the potential the December 2018 given banking stocks, actions among the listed in corporate increase capital requirement. meet their new stated deadline for banks to activities anticipated advantage of the take closely to the market monitor to will continue We that believe the Fund. We for returns earn the best risk adjusted whilst managing risk to equity mutual fund in the mutual fund the most attractive remain the Fund will continue to market. Anthony Degbato Head of Asset Management 2017
2016 2015 (GH¢) 2014 702,192.43 522,266.67 495,377.84 518,758.02 981,358.61 1,749,744.75 1,419,678.65 1,416,390.00 1,325,080.06 2,620,672.07 3,113,816.63 2,961,474.55 3,367,093.43 6,935,530.60 Total Assets Assets Total 2013 2012 2011 Fund 0.00% 6.68% -0.71% -9.00% 21.21% 89.20% 14.40% 13.36% 43.16% 10.00% 23.00% 42.54% 52.06% Return -22.78% 2010 2009 2008 Growth of the Fund since Inception 2007 Year 2004 2009 2011 2012 2013 2014 2015 2016 2017 2005 2006 2007 2008 2010 2006 2005 Growth of the Fund since Inception ( 2004 - 2017) ( 2004 since Inception of the Fund Growth 2004 2003 0 (GH¢) 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 7,000,000
SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 12 SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 13 259,454 873,739 673,832 1,681,386 48% Banking Insurance 7.44% 25.05% 19.32% 48.20% 8% Manufacturing 19%
Sector Allocations (Equities Only) (Equities Allocations Sector Sector Allocations (Equities Only) Sector Marketing Petroleum 25% Insurance Manufacturing Marketing Petroleum Banking 8.87% 6.80% 5.63% 3.66% 1.08% 0.96% 0.77% 0.27% 0.18% 0.17% 0.15% 0.08% 7.58% 12.50% 10.40% 50.29% 42.13% 100.00% Exposure Financial Non- Financial 55.63% Dairy Products Dairy Products Banking Marketing Petroleum Banking Banking Insurance Marketing Petroleum Banking Banking Banking Consumer Products Insurance Manufacturing Consumer Products Sector Sector Fund Holdings Ghana Ghana Ghana Ghana Ghana Ghana Ghana Ghana Ghana Ghana Ghana Ghana Ghana Ghana Country Financial vrs. Non Financial 44.37% Fanmilk Ltd. Bank Ghana Commercial Ltd. Ghana Oil Company Ltd. Ecobank Ghana Bank Gh. Ltd. Chartered Standard Ltd. Group Enterprise Ghana Ltd. Petroleum TOTAL Bank Ltd. CAL Generale Ghana Ltd. Societe Inc. Ecobank Transnational PZ Cussons Ghana Ltd. Insurance Company Ltd. State Aluworks Ltd. Ltd. Ghana Unilever Total Market Others (Including Money instruments) Cash and cash equivalent Total Company Name SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 14
SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 15 Dec 2017) Dec 2017) - - 5.40% 5.21% -3.10%
52.73% 23.81% 78.81% 31.21% 58.16% 32.25% 91.33%
-11.77% -15.33% -29.72% -46.58% 2017 2016
Industry Return Industry Return 2015
2014
2013
2012
2011 6.68% 2010 0.00% -0.71% -9.00%
13.36% 43.16% 21.21% 89.20% 14.40% 10.00% 23.00% 42.54% 52.06%
-22.78% 2009
Fund Return 2008
Growth of Fund since Inception (2003 Fund Return Growth of Fund since Inception (2003 Industry Return 2007
Fund returns since inception Fund returns Benchmark (GSE-CI) Returns
2006 2005
Fund Returns vrs Benchmark (GSE-CI) Returns 2004 2003 Fund Returns vrs Benchmark (GSE-CI) Returns (2004- 2017) Returns (GSE-CI) Benchmark Returns vrs Fund 00% 00% 00% 00% 00% 00% 0. 2016 2017 2013 2014 2015 2012 2007 2008 2009 2011 2006 2010 Year 2005 2004 The Fund raised capital in 2004 from its shareholders Fund raised capital in 2004 from The 50. 50. - 200.00% 100. 150. 100. - of L.I REPORT OF THE DIRECTORS TO THETO MEMBERS OF SAS FORTUNE FUND LIMITED 1695. There was no change in the nature of business of the company during the year under review. under review. of business of the company during the year was no change in the nature There Going Concern Considerations policies accounting of basis on the presented been have statements financial attached The made the we have As directors, a going concern entity. applicable to and conventions requirements capital and other financial necessary assessment and evaluation of the future that exercise that evaluative through our attention of the company and nothing has come to that the Fund is not a going concern. conclude leads us to appropriate internal control structure. control internal appropriate administrative and accounting internal of system risk-based a include controls internal The assurance that assets are but not absolute reasonable provide designed to controls with generally in accordance and recorded executed are and that transactions safeguarded policies and procedures. and stated business practices accepted of business Nature as an operate Commission to Company is licensed by the Securities and Exchange The and Mutual Funds Regulations fund and is regulated mutual by the Unit Trusts authorized We, the Directors of the SAS Fortune Fund Limited have pleasure in submitting our annual in submitting our annual pleasure have Fortune Fund Limited of the SAS the Directors We, ended 31st December 2017. year for the Statements Financial with the audited together report responsibility of Directors’ Statement for of the Fund, as directors responsible, 1963 (Act 179), we are Under the Companies Act fair and a true give which Statements Financial year, financial each of respect in preparing year in for that or Loss and Cash Flows Profit of affairs of the Fund, and of its view of the state these (IFRS). In preparing Financial Reporting Standards with the International accordance and policies accounting suitable select to directors as required we are Statements, Financial and prudent reasonable that are judgments and estimates make then apply them consistently, under the circumstances. regular assessment and evaluation make to required are we IFRS, the with compliant fully be To each reporting amounts of assets and liabilities of the Fund at of the fair values of the carrying date. books of accounts, which disclose with proper for keeping also responsible are We responsible further We are the financial position of the Fund. accuracy at any time reasonable prevention for the steps the Fund and taking reasonable the assets of for safeguarding the design and implementation of fraud and other irregularities and detection through
SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 16 SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 17 REPORT DIRECTORS THE OF TO THETO MEMBERS OF SAS FORTUNE FUND LIMITED Financial Results & Income Distribution Financial Results & Income Fund does not The Statements. as set out in the attached Financial are for the year results The earned is reinvested. income and thus all income distribute Auditors office as auditors continue in to their willingness indicated Debrah & Co have Messrs Nexia therefore Act 1963 Act 179. We with Section 134(5) of the Companies in accordance of the Fund. auditors their continued appointment as independent recommend Management Representation Position, Comprehensive Assets, Financial of Investment certify that the Statements We thereon together with the notes report of the Auditors to in the referred Income and Cash flows and information records, from been prepared report have of this to 37 22 on pages identified Fortune Fund Limited. of the SAS made by us, the Directors representations needed by the audit information (i.e information is no relevant there aware, So far as we are auditors company’s the of which report) and work their with connection in auditors company’s by a director be taken that ought to steps reasonable has taken and each director unaware are establish that the audit information and to of any relevant him/her self aware make to in order of such information. aware are Fund’s auditors contain all Financial Statements belief the and to the best of our knowledge confirm that We approve We respects. in all material and accurate complete are transactions and that they and the ended December 31, 2017 for the year Income of Comprehensive the Statement this 16th day of thereon the notes with together Position at that date of Financial Statement April 2018. REPORT OF THE INDEPENDENT AUDITORS INDEPENDENT THE OF REPORT TO THE MEMBERS OF SAS FORTUNE FUND LIMITED FUND FORTUNE SAS OF MEMBERS THE TO Opinion which comprise the Fortune Fund Limited, SAS of the financial statements audited have We of Comprehensive 2017, and the Statements of Financial Position at 31 December Statement then year the for Shares Issued in Movement and Assets Investment Flows, Cash Income, significant of summary a include which statements financial the to notes the and ended, 37. as set out on pages 22 to accounting policies and other explanatory notes, give and fair view of the financial position a true In our opinion, these financial statements and performance financial of its and 2017, December at 31 Limited Fund Fortune SAS of Financial Reporting cash flows for the with International year then ended in accordance Companies Act, 1963 (Act 179). Standards (IFRSs) and in the manner require by the with section the company’s members, as a body, in accordance is made solely to Our report make enable us to audit is to purpose of our 133 of the Companies Act 1963, (Act 179). The by required to specifically law the members of the company on those matters to a statement permitted the fullest extent and for no other purpose. To report be mentioned in an auditor’s its company and than the other anyone law,by to responsibility assume not accept or do we herein expressed or the opinions we have members as a body for our audit work, our report, above. Basis for Opinion on Auditing (ISAs). Standards with International our audit in accordance conducted We further described in the section of our report are standards under those Our responsibilities In form and Responsibilities for the Audit of the Financial Statements. dealing with the Auditors’ with the Code of Ethics for of the Company in accordance independent substance, we are for Accountants Board Ethics Standards by the International Accountants issued Professional with these responsibilities in accordance fulfilled our other ethical (IESBA Code) and we have obtained is we have that the audit evidence believe and the IESBA Code. We requirements a basis for our opinion. to provide sufficient and appropriate
SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 18 SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 19 How the matter was addressed in our audit was addressed How the matter issued by the investee certificates investment we inspected deposit investments, For fixed date. the reporting up to earned interest entities and recomputed to supporting documentation for redemptions generally confirmed additions and We and by custodial issued independent statements reviewed types. We all investment the valuation the ledgers of the company and tested to reconciled entities and depository the market. to investments of quoted those of respect in disclosures Company’s the of adequacy the considered also We investments. The investment portfolio of the Fund yields returns and income passively based on the passively and income Fund yields returns portfolio of the investment The investment type. The each investment related to the tenor and of interest/return rates asset classes into Equity and is well diversified portfolio has a wide span Quoted such as Chartered is by Standard of these investments The custody of Deposits. and Certificates purposes. for such holding specifically authorised or nominated Securities Services who are dates. reporting the at markets those to marked are markets active on traded Investments at amortised cost. recorded are investments Market Money Investmentsand related matters (GH¢ 6,771,711) assets of investment the statement Refer to Other Information other information comprises for the other information. The responsible are Directors The by Report as required the Directors’ the information included in the Annual Report and not include the financial other information does the Companies Act, 1963 (Act 179). The does not on the financial statements Our opinion thereon. report and our auditors’ statements thereon. conclusion of assurance any form express we do not and information other the cover read the other to responsibility is our In connection with our audit of the financial statements, inconsistent materially is information other the whether consider so, doing in and, information to or our knowledge obtained in the audit, or otherwise appears with the financial statements misstated. be materially misstatement is a material performed, we conclude that there If, based on the work we have report anything to do not have that fact. We report to required of this other information, we are in this regard. Key Audit Matters Key of most judgment, were in our professional that, those matters are audit matters Key were These matters period. current of the statements in our audit of the financial significance forming our as a whole, and in of the financial statements of our audit in the context addressed For each matter opinion on these matters. a separate we do not provide and opinion thereon, in that context. is provided the matter addressed of how our audit below, our description Identify and assess the risks of material misstatement of the financial statements, of the financial statements, misstatement Identify and assess the risks of material to responsive design and perform audit procedures or error, fraud whether due to a to provide and appropriate those risks, and obtain audit evidence that is sufficient from resulting misstatement a material risk of not detecting basis for our opinion. The collusion, forgery, as fraud may involve error, from fraud is higher than for one resulting control; of internal or the override misrepresentations, omissions, intentional design to audit in order the to relevant control Obtain an understanding of internal of purpose the for not but circumstance, the in appropriate are that procedures audit control; of the Company’s internal an opinion on the effectiveness expressing of reasonableness the and used policies accounting of appropriateness the Evaluate made by management; and related disclosures accounting estimates use of the going concern basis of of the Directors’ Conclude on the appropriateness uncertainty whether a material accounting and, based on the audit evidence obtained, that may cast significant doubt on the Company’s or conditions events related to exists uncertainty exists, going concern. If we conclude that a material continue as a ability to in the the related disclosures to in our audit report draw attention to required we are Our to modify our opinion. inadequate, are disclosures or, if such financial statements of our audit the date audit evidence obtained up to based on the conclusions are cease to may cause the Company to or conditions events future However, report. continue as a going concern; • • • • Responsibilities of the Directors for the Financial Statements for the the Directors of Responsibilities a true and that give statements of financial the preparation for responsible are Directors The manner the in and Standards Reporting Financial International with fair view in accordance as the Directors control and for such internal Act, 1963 (Act 179), by the Companies required from free are that statements financial of preparation the enable to necessary is determine fraud or error. whether due to misstatement, material Company’s the assessing for responsible are Directors the statements, financial the preparing In concern going relatedto matters applicable, as disclosing concern, going a as continue to ability liquidate to either intend basis of accounting unless the Directors and using the going concern do so. but to alternative no realistic have cease operations, or the Company or to process. reporting the Company’s financial for overseeing responsible are Directors The Statements Responsibilities for the Audit of the Financial Auditors’ statements financial the whether about assurance reasonable obtain to are objectives Our issue an and to fraud or error, due to whether misstatement, material from free as a whole are of assurance, a high level that includes our opinion. Reasonable assurance is report auditors’ a will always detect with ISAs in accordance that an audit conducted but is not a guarantee when it exists. misstatement material or in the if, individually material considered and are fraud or error can arise from Misstatements the economic decisions of users influence to be expected could reasonably they aggregate, on the basis of these financial statements. taken and maintain judgment professional we exercise with ISAs, As part of an audit in accordance also: the audit. We throughout skepticism professional
SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 20 SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 21 We have obtained all the information and explanations obtained the best of our knowledge and have which to We for the purpose of our audit. necessary belief were by the Company, as far as appears been kept accounts have books of In our opinion proper of those books; and our examination from with the books in agreement Company’s balance and loss accounts are sheet and profit The of accounts. is Kwame report in this independent auditor’s engagement partner on the audit resulting The Manu-Debrah (ICAG/P/1264). Evaluate the overall presentation, structure and content of the financial statements, including statements, financial the of content and structure presentation, overall the Evaluate transactions the underlying represent statements the financial and whether the disclosures, fair presentation; in a manner that achieves and events planned the other matters, among scope regarding, the Directors with communicate We in deficiencies significant any including findings, audit significant and audit the of timing and during our audit; that we identify control internal ethical complied with relevant that we have with a statement the Directors also provide We all relationships with them communicate to independence, and regarding requirements on our independence, and where bear be thought to that may reasonably and other matters applicable, related safeguards; of that were those matters we determine with the Directors, communicated the matters From are therefore and period of the current of the financial statements most significance in the audit law unless report in our auditor’s or regulation describe these matters We matters. audit the key we circumstances, rare in extremely or when, the matter about public disclosure precludes adverse the because our report in be communicated should not that a matter determine public interest outweigh the to be expected would reasonably consequences of doing so benefits of such communication. 2. 3. 4. 1. • • • • Report on Other Legal and RegulatoryReport on Other Legal and Requirements consider and audit, to when carrying out our required, Under the Companies Act, 1963 (Act 179) we are report that: We accordingly matters. on the certain specific report 8,644 3,404 2016 45,071 11,632 39,654 13,599 41,184 13,620 Market 17,003 387,514 496,342 183,869 160,932 204,600 245,784 484,256 1,164,082 2,094,321 174,552 Value GH¢ Value
9,879 5,136 2017 18,611 64,902 52,446 73,424 11,350 12,363 Market 17,499 704,081 846,361 600,408 381,174 248,104 460,173 673,832 259,454 1,681,386 3,488,411 Value GH¢ Value 400 15,096 61,812 61,745 61,745 60,094 47,817 60,549 20,800 67,055 63,958 s Share 139,422 116,320 223,200 113,500 1,051,768 Number of 0.96 0.27 0.15 6.80 5.63 8.87 1.08 0.17 0.18 3.66 0.77 0.08 0.26 9.95 3.83 12.50 %Net 0.15 10.40 51.51 12.50 24.83 Assets
AS AT DECEMBER 31, 2017 31, DECEMBER AT AS STATEMENT OF INVESTMENT INVESTMENT OF STATEMENT ASSETS SAS FORTUNE FUND LIMITED FUND FORTUNE SAS QUOTED EQUITY QUOTED Aluworks Limited Aluworks Limited Other Manufacturing Fan Milk Limited Dairy Products CAL Bank Limited CAL Banking Ecobank Ghana Limited Ecobank Transnational (ETI) Ecobank Transnational GCB Bank Limited Standard Chartered Bank Ghana Ltd Chartered Standard Societe Generale Ghana Ltd Societe Consumer Products PZ Cussons Ghana Limited Unilever Ghana (UNIL) Unilever Petroleum (GOIL) Ghana Oil Company Limited Total Petroleum Ghana Limited Petroleum Total Insurance Limited Group Enterprise State Insurance Company Limited State TOTAL QUOTED EQUITY QUOTED TOTAL
SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 22 SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 23 GH¢ 2016 40,253 65,781 Value Market 277,833 944,007 1,262,093 1,327,874 3,422,195 - GH¢ 2017 Value Market 191,015 500,766 2,591,519 6,771,711 2,782,534 3,283,300
of Shares Shares Number 0.00 7.39 2.82 2.82 38.27 %Net 41.09 48.49 Assets 100.00 STATEMENT OF INVESTMENT INVESTMENT OF STATEMENT (CONTINUED) ASSETS SAS FORTUNE FUND LIMITED FUND FORTUNE SAS FIXED INCOME / SHORT TERM Instruments Deposit 91 Day Fixed 182 Day Fixed Deposit Instruments Deposit 182 Day Fixed 365 Day Fixed Deposit Instruments Deposit 365 Day Fixed Cash at Bank and on Call TOTAL FIXED INCOME/SHORT-TERM TOTAL TOTAL INVESTMENTS TOTAL
- GH¢ 8,784 2016 47,748 69,067 423,919 116,815 315,888 315,888 172,753 432,703 (143,135)
- GH¢ 2,227 2017 58,904 100,930 654,480 159,834 496,173 496,173 656,707 1,234,743 1,731,616 6 3 4
5 10 Notes
STATEMENT OF COMPREHENSIVE OF STATEMENT YEAR THE FOR INCOME 2017 31, DECEMBER ENDED SAS FORTUNE FUND LIMITED FUND FORTUNE SAS Total Expenses Total Capital Income before Net Investment Gains/ (Losses) Capital Gain Net Realized Income Net Investment Capital Gains/(Losses) Net Unrealized to Net Income Transferred Accumulated Income Account Total Investment Income Investment Total Expenses Management Fees Other Operating Expenses Investment Income Investment Income Other Income
SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 24 SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 2525 GH¢ 2016 44,757 19,496 44,757 1,860,858 1,536,076 3,422,195 3,441,691 3,396,934 3,396,934 GH¢ 2017 29,140 29,140 239,352 4,104,566 2,877,357 6,771,711
6,981,923 6,981,923 7,011,063 9 8 11 12 Notes Total Liabilities Total NET ASSETS SHAREHOLDERS’ FUND Capital Accounts Accumulated Income Account Balance at December 31st Investment Assets Investment Assets Total LIABILITIES Accounts Payable ASSETS Accounts Receivable
STATEMENT OF FINANCIAL FINANCIAL OF STATEMENT 2017 31, DECEMBER AT AS POSITION SAS FORTUNE FUND LIMITED FUND FORTUNE SAS - GH¢ 2016 561,582 315,888 425,025 172,753 (207,555) (101,755) 252,272 (143,135) 2,971,909 3,396,934 - GH¢ 2017 496,873 1,234,743 (390,334) (161,242) 3,396,934 3,584,991 2,404,951
1,731,616 1,853,375 6,981,925 STATEMENT OF CASHFLOWS OF STATEMENT ENDED YEAR THE FOR 2017 31, DECEMBER SAS FORTUNE FUND LIMITED FUND FORTUNE SAS Net Unrealized Capital Gain /(Loss) Capital Net Unrealized Operations from Net Increase Capital Transactions: From Issue of Shares From Realized Proceeds (Loss)/Gains on Redemptions Redeemed Cash outflow for Shares Transactions) Net cash Inflow/ (outflow) for Capital Net Realized Capital Gain Capital Net Realized In Assets Net Increase/(Decrease) Net Assets at January 1st Net Assets at December 31st INCREASE IN NET ASSETS INCREASE From Operations: From Capital Gains Income before Net Investment
SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 26 SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 27 2016 (598,019) 5,833,891 1,069,442 6,903,333 6,305,313 No. of Shares 2017 (779,070) 6,305,314 3,471,336 9,776,650 8,997,580 No. of Shares STATEMENT OF MOVEMENT MOVEMENT OF STATEMENT YEAR THE FOR SHARES ISSUED IN 31,2017 DECEMBER ENDED SAS FORTUNE FUND LIMITED FUND FORTUNE SAS Net Assets at December 31st Balance at January 1st Issue of Shares Redemption of Shares
GH¢ Gain 1,235 1,732 (Loss) 19,830 (2,270) Capital 308,109 207,739 32,240 32,240 290,458 12,792 72,659 197,305 1,234,743 (1,236) 87,172 6,978 ------GH¢ 71,647 Sales / 87,699 87,699 159,346 During Yr Purchases 9,879 5,136 64,902 18,611 12,362 73,424 11,350 52,446 460,172 248,104 600,408 846,361 381,174 704,081 932,989 30/12/17 No. of Sh. of Sh. No. Mkt Value 3,488,410 (2,555,421) 400 GH¢ 61,745 60,094 67,055 47,817 61,812 20,800 15,096 60,549 63,958 113,500 116,320 139,422 223,200 Position
30/12/17 1,051,768 GH¢ 8,644 3,404 45,071 11,632 13,599 39,654 13,620 41,184
160,932 484,256 260,400 183,869 496,342 387,514 31/12/16 773,643 Mkt Value 2,094,320 (1,320,677) 400 61,745 60,094 60,549 67,055 43,470 15,096 61,812 63,958 20,800 116,320 186,000 113,500 139,422 Position 31/12/16 No. of Sh. No. 1,010,221 QUOTED EQUITY PORTFOLIO SUMMARY SUMMARY PORTFOLIO EQUITY QUOTED 2017 31, DECEMBER AT AS SAS FORTUNE FUND LIMITED FUND FORTUNE SAS ALW CAL Equity EBG EGL ETI FML GCB GOIL PZ SCB SG-SSB SIC TOTAL UNIL Market At Balance on Unrealized Gain/(Loss) Reserve Cost At
SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 28 SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 29 NOTES TO THE FINANCIAL STATEMENTS FINANCIAL THE TO NOTES 2017 31, DECEMBER ENDED YEAR THE FOR SAS FORTUNE FUND LIMITED FUND FORTUNE SAS 1. THE REPORTING ENTITY Company 1.1 The under Ghanaian Legislation. liability company registered is a limited Fortune Fund Limited SAS as an operate to Commission Exchange the Securities and is licensed by Company The Regulations and Mutual Funds Trusts mutual fund and is regulatedthe Unit under authorized L.I 1695. POLICIES ACCOUNTING 2. SUMMARY OF SIGNIFICANT ended 31st December 2017 incorporate year of the company for the financial statements The by the policies set out below, including changes introduced the principal accounting (IFRS). Financial Reporting Standards International by legislation, particularly required information All the material the Companies Act 1963 (Act Commission Regulations179) and the Securities and Exchange also 2003 (L.I.1728) have context. in the appropriate been disclosed or presented 2.1 Basis of Presentation cost basis as modified under the historical its Financial Statements company prepares The the assessment of impairment and and liabilities through of certain assets by the revaluation on the basis and presented prepared are financial statements of fair value. The measurement directors concern entity. The a going applicable to of accounting policies and conventions capital and other carried out the necessary assessment and evaluation of the future have that evaluative through of the company and nothing hasemerged requirements financial the company is not a going concern the conclusion that that can lead to exercise 2.2 Income Recognition to on the accrual basis, and statements in the financial and recorded Income is recognized related to the Company and the that economic benefits will flow that it is probable the extent measured. can be reliably revenue Income Interest of income in the Statement interest recognize method is used as basis to interest effective The – bearing financial instruments. Income for all interest Comprehensive method is a method of calculating interest the amortised cost of a financial asset effective The that exactly rate is the rate interest applicable effective income. The and allocating the interest life of available cash payments or receipts the expected over future discounts the estimated amount of net carrying to the period, a shorter appropriate, or, when instrument financial the the related financial asset. The effective interest rate is calculated within the context of all estimated cashflows, and due of all estimated is calculatedrate within the context interest effective The any early payment of the financial instrument including all contractual terms consideration to losses. credit options but not future Dividend Income when the company’s in the Financial Statements and recorded Dividend Income is recognized doubt. all reasonable it has been established beyond receive right to Other Operating Income company’s the consequential dimension of the income accruing from relates to This the accrual basis on and recorded operations and is recognised Expense 2.3 Interest bearing Financial Instruments or loss for all interest in the profit is recognized expense Interest method. rate interest accrues using the effective interest at amortised cost, as measured calculating method is a method of interest a financial the amortised cost of effective The expenses. liability and of allocating the interest cash payments future the estimated discounts that exactly is the rate rate interest effective The the net period to a shorter when appropriate, life of the instrument or, the expected over carrying amount of the financial liability. calculated is of the financial liability, estimating rate on initial recognition interest effective The terms of the instrument. considering all the contractual after cash flows the future 2.4 Financial Assets and Liabilities in the balance with recognized sheet in accordance Financial Assets and Liabilities are explained criteria below: measurement 2.4.1 Financial Assets to cash, the right receive to right A financial asset is an asset that is either cash, a contractual favorable a financial instrument with another accounting entity under potentially exchange in two financial assets of the company are of another entity. The or an equity instrument terms for sale Financial Assets. Maturity, and Available Held to namely Investment categories NOTES TO THE FINANCIAL THE STATEMENTS TO NOTES FOR THE YEAR ENDED2017 DECEMBER 31, SAS FORTUNE FUND LIMITED FUND FORTUNE SAS
SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 30 SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 31 a. Held to Maturity Financial Assets a. Held to or determinable assets with a fixed financial non-derivative Maturity assets are Held to hold to and ability to interest a positive in which the company has payments and tenor are or loss, but profit at fair value through not measured are maturity. Such financial assets method less any impairment interest cost using the effective rather carried at amortised losses. which are redemption date with a fixed and securities For instance, bills discounted at cost initially recognized maturity are of being held to with the intention purchased and discounts on amortization of premiums effect to give to and subsequently adjusted redemption the period to over purchase for Sale Financial Assets b. Available period to be held for indeterminate those intended for Sale financial assets are Available in liquidity, changes challenges arising from to of time, and which may be sold in response not been classified indices and which have as or other such financial market rates interest loss. and profit maturity or at fair value through assets held to 2.4.2 Financial Liabilities cash or another financial either deliver obligations to contractual Financial liabilities are financial instrument with another entity exchange entity, or to another accounting asset to profit either at fair value through measured may be These terms. unfavorable on potentially cost depending on their sub-categorization. or loss, or at amortized a. Financial liabilities at fair value or loss the profit value through market at the current measured liabilities which are are These their initial recognition. subsequent to cost at amortized b. Financial liabilities measured are These value fall under this category. market at current not measured Liabilities which are therefore are and market any active in quoted not are which liabilities non-trading essentially cost. at amortized measured of Fair Value 2.4.3 Determination (IFRS) 13 defines fair value as the price Standard Financial Reporting International The transaction transfer a liability in an orderly or paid to sell an asset to that would be received cost other transaction excluding date, participants at the measurement between market a in such issues usually considered than that relating In practical terms transportation. to would include highest and best use, physical possibility, legal permissiveness determination and financial feasibility. SAS FORTUNE FUND LIMITED FUND FORTUNE SAS (NOTES CONTINUED) (NOTES Quoted market prices, inter – bank interest rates as well as regulatory discount rates are are as well as regulatory rates discount rates – bank interest prices, inter market Quoted Fortune Fund Limited. SAS applicable to standards of the practical measurement examples Asset 2.5 Impairment of Financial is an only if there impaired of financial assets is considered A financial asset or a group after occurred that have event(s) or more of one of impairment as a result evidence objective impact on the estimated adverse have or events of the asset and the event initial recognition assets. group of financial cash flow of such financial asset, or future the value of carrying the between difference as the is measured of impairment amount The cash flows discounted future of financial assets and the estimated financial asset or group of financial asset or group the financial originate used to rate interest at the original effective assets in question. Bonds may include indications that the issuers of Corporate Evidence of impairment Portfolio are of Deposits in the company’s Investments Certificates as well as and Notes interest of payment in the or delinquencies default difficulty, financial significant experiencing reduce to debts maybe restructured and /or principal. It may also include the fact that those on the issuers. the burden 2.6 Impairment of Non-Financial Asset amortization to subject not are and life useful indefinite have that assets are assets Non-financial for the amount by annually for impairment. An impairment loss is recognized tested and are amount recoverable The amount. recoverable its exceeds amount carrying assets’ the which sell. less cost to Value) (Market is the Assets Fair Value all non – financial assets that suffer impairment for review It is the policy of the company to year. of the impairment at least once within each financial possible reversal 2.7 Cash and Cash Equivalents of cash flows comprise physical cash Cash and Cash Equivalents identified in the statement balances three with up to on hand and with other banks as well as highly liquid investments of acquisition by the company. the date (3) months maturity from 2.8 Equity Investment held for the purposes of both trading and investments. are Equity Investments Equity Investments Unquoted book valuation of the investee at cost or the recorded held are investments Equity Unquoted until Account Surplus Capital the to transferred are unrealised losses or gains Any company. sale. through fully realised SAS FORTUNE FUND LIMITED FUND FORTUNE SAS (NOTES CONTINUED) (NOTES
SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 32 SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 33 Quoted Equity Investments Quoted as quoted regarded are or exchange market traded on any active are that Equity investments gains or losses Unrealised at the end of the period. those markets to in value marked and are and loss account. profit the to transferred during the period are Impairment Test for the diminution in any provision subject to implemented are valuation criteria above The the value of any equity investment. 2.9 Provisions a legal or constructive of financial position when in the statement is recognized A provision and the amount date at the reporting exist of a past transaction or event obligation as a result that an outflow of economic and also probable estimated of the obligation can be reliably are provisions obligation. If the effect is material, settle the to will be required resource reflects that rate cash flows at a pre-tax future the expected by discounting determined the risks appropriate, and, where assessments of the time value of money market current to the liability. specific and Reserves Capital 2.10 Stated Capital (a) Stated cash and for the issue of shares Ghana Cedi amount arising from Capital comprises Stated Companies the under defined as surpluses other and earnings retained from transfers any by holders in the normal course of business redeemable are shares Act 1963 (Act 179). These of regulations the Company’s process subject only to and the scheme particulars. The shareholders. between the entity and the respective an exchange involves redemption (b) Capital Surplus/Reserves law of capital surplus account is a creation under sections 69 and 70 of the Companies The of assets of the the revaluation gains or losses arising from Act 1963 (Act 179) and records Financial Reporting International plantcompany including its property, and equipment. The plant the evaluation at regular of these property, intervals and (IFRS) require Standards equipment. Income Account) (c) Income Surplus (Retained Earnings or Accumulated appropriations) the cumulative (after annual profits Income Surplus account records The available shareholders. for distribution to SAS FORTUNE FUND LIMITED FUND FORTUNE SAS (NOTES CONTINUED) (NOTES
- 849 289 GH¢ 1,194 2,961 2016 7,812 6,058 2,726 8,784 12,050 12,192 47,748 122,279 300,791 423,919 10,600 - - - GH¢ 3,817 1,072 2,961 4,700 2017 2,227 2,227 13,650 11,369 10,600 14,552 122,139 528,524 58,904 654,480
ther Operating Income Other Operating Expenses Advertising & Sundry Expenses Advertising Licenses& Permits Dividend Income Deposit on Fixed Interest O Exit Charges Sundry Income Bank Charges Fees Secretarial Investment Income Investment on Bank Deposit Interest Directors Fees Directors Fees Custodian Audit Fee Expenses AGM Professional Fees Professional . 5. 4. 3 6. Realized Gain on Investments 6. Realized (2016: Nil) any disposal of equity holdings during the year Fund did not make The 2.11 Post Balance Sheet Events to the only in the Financial Statements reflected are date the reporting to subsequent Events consideration and the effect is material. under the year relate to that they extent SAS FORTUNE FUND LIMITED FUND FORTUNE SAS (NOTES CONTINUED) (NOTES
SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 34 SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 35 - 633 GH¢ 3,639 4,187 6,329 2016 7,006 8,851 12,050 10,600 10,958 Cost to Capital 19,496 44,757 101,755 161,242 - GH¢ 7,006 8,851 1,251 3,186 1,827 2017 12,277 10,600 29,140 83,777 139,718 239,352 (207,555) (390,334) Gain/(Loss) to Reserves to Paid 309,310 551,576 Consideration 2016 2017 Receivable from SASIM Receivable from Sundry Receivable Capital Omega Receivable from Fees Custody Fees Directors Redemptions/Withdrawals Payable Sundry Accounts Payable Fees Secretarial/Management Audit Fees 8% Investment Tax Withheld Tax 8% Investment Accounts Payable Accounts Accounts Receivable Accounts Redemptions/Withdrawals 9. 8. 7. SAS FORTUNE FUND LIMITED FUND FORTUNE SAS (NOTES CONTINUED) (NOTES
- GH¢ GH¢ GH¢ 2016 2016 2016 561,582 172,753 (143,135) (101,755) (207,555) 1,463,812 1,320,677 1,536,076 1,570,878 1,860,858 1,401,031 1,363,323 -
GH¢ 2017 GH¢ 2017 (598,019) (390,335) 2,877,357 1,536,076 1,069,442 6,305,313 5,833,891 1,145,741 1,731,616 1,320,677 1,234,743 2,555,420 No. of Shares
GH¢ 2017 (161,242) 4,104,566 2,404,951 1,860,858 (779,070) 6,305,314 8,997,580 3,471,336 No. of Shares Balance as at 31st December Balance at January 1st Accumulated Income Accumulated Account Balance at January 1st Unrealized Gain / (Loss) for the Year Gain / (Loss) Unrealized Income Comprehensive of Statement to Charged Gain on Sale of Investment Realized Gain Realized to Transferred Balance 31 at December Capital Accounts Unrealized Gain/ (Loss) Reserve (Loss) Reserve Gain/ Unrealized (Memorandum only) Balance at January 1st Balance Transfers before Redemptions/Withdrawals Redemption of Shares Balance December 31st At Issue of Shares Net Income transferred from Net Income transferred of Comprehensive Statement Income SAS FORTUNE FUND LIMITED FUND FORTUNE SAS (NOTES CONTINUED) (NOTES . 12 11. 10.
SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 36 SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 37 3% 2% 1% None CHARGES 2 3 1 3+ REDEMPTION WITHIN YEAR(S) 16. Transactions through Affiliates through 16. Transactions African Securities Strategic done through were Fund’s equity transactions entire The the the Manager of Management Limited, Investment SAS a company related to Limited, Mutual Fund. 17. Commissions and Levies (2016 Nil). Levies was GH¢3,887 Exchange Commissions and Stock Total 13. Taxation on income or Ghanaian legislation, taxes to not subject Under current funds are mutual done in jurisdictions paid for investments are taxes the required capital gains. However, apply. or gains on investments on income taxes where Transactions 14. Investment NIL) equity was NIL. (2016: in quoted of investments sale Total 15. Redemption/ Exit Fees to encourage shareholders is to and its objective fund growth Fund is a long-term The when apply charges withdrawal following The years. (3) three least at for fund the in remain years. (3) within the first three all or part of their shares redeem investors SAS FORTUNE FUND LIMITED FUND FORTUNE SAS (NOTES CONTINUED) (NOTES SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 38 SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 39 SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 40 SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 41 Other Affiliates Logan and Associates Jescan Construction Limited Ltd. New Beach Realtors EPH Ventures DS 864 P.O Box Accra SASIM Initiatives Strategic Aluworks (Gh.) Ltd Airlines Africa World Accra Hearts of Oak Occupation Legal Practitioner Banker Investment Banker Time with Fund Since Inception (June 2004) August 2013 Since Inception (June 2004) Position Director Director Director Director Director Name, Address INFORMATION ON DIRECTORS ON INFORMATION SAS FORTUNE FUND LIMITED The Kingfisher House The H/No 741/1, Ringway 10th Avenue, Osu - Accra Togbe Afede XIV (61) Togbe KA 16446 P.O Box Accra Interested Directors Interested Paul Hammond (67) 4 Ficus Close Community 20 Tema Independent Directors Maxwell Logan (52) The business and affairs of the Fund are managed by the Fund Manager (ie, SAS Investment Investment SAS (ie, Manager Fund the by managed are Fund the of affairs and business The and the Fund’s officers. of Directors of the Fund’s Board under the direction Management Limited) occupation, other and officers of the Fund and their principal table below lists the directors The and their affiliations. directorships as my/ as AGAINST FOR year ended December 31, 2017 and the Reports of the Directors ended December 31, 2017 and the Reports of the Directors year thereon. and Auditors To receive and adopt the Financial Statements of the Fund for the and adopt the Financial Statements receive To PROXY FORM SAS FORTUNE FUND LIMITED RESOLUTIONS 5. To authorise the Directors to fix the remuneration of the Auditors. the fix to authorise the Directors 5. To 4. To approve Directors’ remuneration Directors’ approve 4. To Mr. Paul Hammond 3. To re-elect Directors retiring by rotation: retiring Directors re-elect 3. To Mr. Mr. 1. appoint Directors: 2. To Shareholder’s Signature Shareholder’s .………………………………………..
…………………………………………… or failing him…………………………………………… …………………………………………… of …………………………………………… him…………………………………………… failing or …………………………………………… Shareholder of the above-named Company hereby appoint …………………………………………….. of appoint …………………………………………….. Company hereby of the above-named Shareholder I/We……………………………………...... ….....of...... …………………………………...... …………...being a I/We……………………………………...... ….....of...... …………………………………...... …………...being our Proxy to vote for me/us and on my/our behalf at an Annual General Meeting of the Shareholders Meeting of the Shareholders for me/us and on my/our behalf at an Annual General vote to our Proxy Hall, Liberia Road, Accra or July 26, 2018 at the British Council be held at 12.30 p.m. on Thursday to at any adjournment thereof. by an X in the resolution as indicated the specified be cast on that my/our vote(s) direct I/ We space. appropriate
SAS FORTUNE FUND REPORT AND FINANCIAL STATEMENTS 42 More than two decades of FINANCIAL SOLUTIONS for our many cherished individual and institutional clients
to helping our clients craft unique and markets. SAS is a leading licensed dealing Mutual Funds high-yielding investment portfolios, grow member of the Ghana Stock Exchange. It is possible to enjoy equity returns in their financial assets and entrench family Our traders strive to offer clients the an investment fund that is as liquid as values! best services so that their purchases and a money market or a savings account. sales of shares, treasury bills and bonds, SAS Fortune Fund offers just that! With a Pensions & Retirement Solutions corporate bonds and other securities are five-year historical average annual return executed efficiently and timely! of more than 40%, you should consider Prioritise the future and retirement life- SAS Fortune Fund for your long-term style of your employees by entrusting SAS Capital Markets & Financial Advisory investment portfolio. Start planting today with the management of their pensions, the trees that will shelter your family in provident and welfare funds. We work Our investment bankers work closely with the future! with trustees and employee plans to clients to develop innovative solutions maximise employee investment returns. that meet their financing and strate- Wealth Management Join our growing and happy family of gic goals effectively. SAS has extensive workers who are looking forward to a Are you looking to build up business experience, institutional knowledge comfortable retirement! capital or save for a home, your dream and a distinguished track record in car, your children’s education or perhaps capital markets advisory, capital raising Shares, Treasury Bills and Bonds retirement? Your dreams are within transactions and strategic advisory reach, with the support of SAS! Our wealth We advise investors seeking opportuni- assignments, spanning a wide range of management professionals are dedicated ties to grow their portfolios in the capital industries!
INVESTMENT MANAGEMENT | INVESTMENT RESEARCH | SECURITIES TRADING | CAPITAL MARKETS | FINANCIAL ADVISORY
14th Floor, World Trade Centre, Independence Avenue, P O Box KA 16446, Accra, Ghana T: +233 302 661990 / 661770 / 661900 / 661008 | E: [email protected] [email protected] | www.sasghana.com
SAS Investment Management Limited is licensed by the Securities & Exchange Commission and the National Pensions Regulatory Authority. Strategic African Securities Limited is licensed by the Securities & Exchange Commission and the Ghana Stock Exchange 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. [email protected]
www.facebook.com/sasinvestmentsgh twitter.com/SASInvestments www.instagram.com/sasinvestmentsgh