29.03.2004 Business & Finance

Gold Fund Unit Trust hits the market

29.03.2004 LISTEN

Accra, March 28, GNA - Gold Coast Securities Limited would tomorrow, March 29 put on the market The Gold Fund Unit Trust Scheme that seeks to mobilize long term capital to support the goal of making the private sector rise up to meet the challenges of transforming the Ghanaian economy. Fund Managers told the Ghana News Agency (GNA) Business Desk in Accra that the scheme, which has been 10 years in the making, unlike existing Unit Trusts, focused on the Business Enterprises, Corporate Industries and Small Medium Enterprises that had long suffered in a bid to raise money for their operations. They noted that the Fund would initially offer 20 million units consisting of an unlimited number of units of beneficial interest at a cost of 500 cedis per unit. An initial investment of 10,000 cedis with purchases of units in a minimum of 20 units in lots of 20 thereafter could be purchased.

The Initial Public Offer (IPO), which starts from Monday March 29, 2004 to June 30, 2004 aims to raise 10 billion cedis over the next three months. The Managers said under normal market conditions, not less than 75 per cent of the Fund's total assets would be invested in equity securities of Ghanaian companies. The Gold Fund as it is called, will not invest more than 50 per cent of its assets in securities of companies in the same industry. According to the Managers, overall growth prospects, competitive positions in domestic and export markets, technology, research and development and resource prospects would be the factors for consideration and selection.

The Gold Fund will also invest primarily, in both listed and unlisted equity securities of Ghanaian companies. The Fund Managers said the units of the Gold Fund will not be listed on the Ghana Stock Exchange at this time, saying, "all the units of the Fund will be at the offices of the Gold Coast Securities throughout the country."

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