Enterprise Group announces timetable for Rights Offer

Enterprise group rights offer

Enterprise Group Limited (EGL) has finally announced a detailed timetable for their long-awaited Rights Offer. The proposed Rights issue follows approval of the company’s Board of Directors to raise funds from existing shareholders.


On the 10th of November 2017, Board of Directors of EGL gave the nod to raise GH¢219,720,000 from the issue of 36,620,000 ordinary shares. This proposal was finally approved by the Securities and Exchange Commission recently on 16th February 2018.


As previously published, the price for the Rights Offer is to be fixed at GH¢6 per share. This would be made in the ratio of one new share per every 3.6543 shares held by shareholders in accordance with the qualifying date.


In line with the Rights Offer, a provisional letter of allotment is expected to be sent to qualifying shareholders. Shareholders are therefore advised to obtain a copy of circular for the Offer from Databank Brokerage Limited, African Alliance Securities Ghana Limited and NTHC Limited. The Circular may also be downloaded from Enterprise Group’s website: enterprisegroup.com.gh.

Detailed timetable for the Rights Offer

The table below shows the important dates and activities for the proposed Rights Offer:


Ex-Rights date 23rd February 2018 8:00 am
Qualifying date 27th February 2018 5:00 pm
Book Closure date 28th February 2018 8:00 am
Offer commencement 14th March 2018 9:00 am
Commencement of trading in Rights 14th March 2018 10:00 am
End of trading in Rights 21st March 2018 3:00 pm
End of Offer 28th March 2018 4:30 pm
Commencement of application forms review for allotment 29th March 2018 9:00 am
End of allotment 3rd April 2018 4:30 pm
Submission of Offer results to regulators 5th April 2018 3:00 pm
Crediting of EGL shares to successful applicants on the CSD 9th April 2018 3:00 pm
Deadline for refunds to unsuccessful applicants 10th April 2018 3:00 pm
Commencement to dispatch allotment letters to successful applicants 11th April 2018 9:00 am
Listing of additional shares for trading on GSE 13th April 2018 10:00 am


Contact persons for more information

Armah I.J. Akotey



Sidney Koranteng



Winston Nelson Jr.



Enyonam Dagadu




Credit: GSE

When is the right time to withdraw from my [mutual fund] investment?

right time to withdraw from mutual fund

When my colleague cheerfully stated that his mutual fund investment would be maturing in a year’s time, I nearly got confused until he explained further.

It was a usual group conversation on personal finance during which a colleague, Kwame, chipped in that an equity fund account he had maintained for three years was left with just one year more to mature. As such, he was so happy that he would be redeeming his money in no time.


Well, Kwame may not be absolutely wrong. After all, he had been told by the brokerage company (while opening the investment account) that he could withdraw from the mutual fund after four years.

However, what he failed to understand was that the investment holding period given by the brokerage institution was for recommendation purpose only, other than a defined prescription to follow.


Undeniably, there are variant perceptions concerning the right time to redeem one’s money from a mutual fund account. This must not be surprising as knowing the right time to withdraw from mutual fund investments can be more difficult than we thought.

Factors to consider before withdrawing from investments

In reality, knowing the right time to withdraw from an investment goes beyond counting the number of years the money has stayed invested.

To cash out from a mutual fund investment, many factors must be considered. These include, but not limited to, investment objectives, associated fees and commissions, performance of the investment, rebalancing of investment portfolio, etc.

Considering your investment objective

Ideally, every investment comes along with a defined objective. You invested your money for a reason and for that matter would like to cash it out at the right time for the planned expenses.

For example, your investment objective may be for retirement income. It may also be for a down payment for your mortgage loan, to pay a college fee, or even for a short-term goal such as going on a vacation.


Obviously, for short-term objectives, you may have invested in short-term investment products such as money market fund. However, if the time is due for these objectives to be fulfilled, it would be appropriate to consider withdrawing from the investment.


You may have also invested in an equity fund for long-term goals but realise that the goals are fast approaching. In such instances, it would equally be appropriate to withdraw from the equity fund and probably deposit in a low-risk investment account.


For example, after patiently investing in HFC equity trust for your retirement needs, you may find it necessary to divert portion of the investment to HFC unit trust when you’re closer to your retirement age.


Considering fees and commissions

The importance of assessing fees and commissions charged on mutual funds does not end after the account opening. Indeed, it is still necessary to have a further look at them before any withdrawal is made.

Fees and commissions can affect returns made on your investment. In a previous post on investment fees and commissions, I mentioned front-end load and back-end load as the two main direct costs charged on mutual funds.

While front-end loads are charged upfront during the account opening process, back-end loads, on the other hand, are charged when exiting from the funds.

Considering front-end load

Currently, the front-end load on major money market funds in Ghana is 1% of the invested capital. Since the front-end load is charged once on the invested capital, it would mean that the longer the money stays invested, the less expensive the fee.

For example, if you invest in a money market fund (such as HFC Unit Trust), 1% of your invested capital would be deducted as a front-end load no matter how long the money stays invested.

In effect, if you decide to take back your money just after two months, it would cost you more (1% fee in two months) than waiting for about six months, one year or even more.

Considering back-end load

It is equally important to consider back-end load before exiting or withdrawing from a mutual fund investment. An investor who withdraws from his mutual fund account prematurely is charged a back-end load on the withdrawal amount.

Currently, most equity fund managers charge back-end load of 1-3% on withdrawals made before 3 years. For example, if you invest in FirstBanC Heritage fund and wish to cash out within one year, you would be paying an exit fee of 3% on the withdrawal amount.

This fee decreases to 2% if you’re making the withdrawal in the second year of your investment, 1% in the third year and subsequently no fee after the third year.

As you can see, to reduce or avoid paying such fees, you would need to keep your investment for at least three years before any withdrawal.


It must be noted here that the counting of the number of years is done in reference to the actual dates the investment deposits were made. Interestingly, it is unusual of us as investors to make just a one-time deposit until ‘maturity’.

As you know, we regularly top up our mutual fund investments after the initial investment capital. What we forget to understand during withdrawals is that the subsequent additional deposits may not have stayed in the account for more than three years. Consequently, the lack of this awareness cost us money in the form of back-end loads (fees).


Let’s assume you opened an EPACK account with Databank financial service way back in 2008. After 8 years, you realised the importance of topping up your account and therefore made your second deposit in 2016 and a subsequent third deposit in 2017 as shown in the table below:


Date Invested amount Bid price, GH¢ Offer price, GH¢ Acquired units
19th Nov 2008 GH¢500 0.84 0.84 595.24
21st Nov 2016 GH¢1000 2.4939 2.4939 400.98
21st Nov 2017 GH¢1000 3.3590 3.3590 297.71

                                                                                                                                                              Total acquired units




Having maintained the account for about 10 years, you decided to make your first withdrawal on 7th February 2018.

Now, on the 7th of February 2018, the bid price of Epack was reported as GH¢3.7385. Thus the value of your Epack investment would be GH¢4837.36 (That is, 1293.93 × 3.7385 = GH¢4837.36).

Out of this figure, you would like to withdraw GH¢4000. Thus, you would need to sell 1069.95 units in order to cash out the GH¢4000. [That is, 4000/3.7385 = 1069.95]


Unfortunately, not all the 1069.95 units had been acquired for more than 3 years. Even though your account had been opened far more than three years ago (since 2008), you may still be paying exit fees due to the top-ups you made in the recent years.


From the table, it is clear that only 595.24 units (acquired during the account opening) had been maintained for more than 3 years. Thus, any additional unit withdrawn in excess of the 595.24 would attract exit fee (back-end load).

To avoid paying such fees, you would need to limit your withdrawal to an equivalent amount of the 595.24 units (which is GH¢2225.3).

You can therefore wait patiently for the recently-acquired units to exceed the minimum three-year holding period before any further withdrawal.

Considering performance of the investment

Certainly, earning more on our money can be argued as the main reason of investing. As investors, we all expect some returns on our invested money. Thus, having a look at how our investment has performed is necessary when deciding to cash out.


Before withdrawing from your investment account, it would be appropriate to ensure that your invested capital has made some profits. Depending on the kind of mutual fund, the investment may need some patience to grow.


This is particularly pertained to equity and balanced funds which are driven by the stock market. In a way, the longer your money stays invested in an equity fund, the better the earning prospects.


Actually, it is not just equity-based investments that enjoy good returns when maintained for long. Keeping your money market investment longer can similarly earn you more profits even though not so significant.

In a previous post, I mentioned that investment returns on money market funds are not equally distributed over the investment period due to the effect of compound interest.


For instance, if you invest GH¢1000 in a money market fund and decide to withdraw your money after six months, you would not be expected to earn half of the published annual return. This can even worsen as your investment duration keeps reducing.


Let’s assume you invested GH¢1000 in HFC unit trust (a money market fund) on 30th January 2017. The reported annual yield at the time of investment was 20.55%.

In the post about percentage rates of investments, I explained annual yield as an estimated rate of return on an investment assuming the investment capital remains intact for one year (365 days).


Over the course of one year, your investment in the HFC unit trust would look like what is presented in the table below:


Date Bid price, GH¢ Offer price, GH¢ Value of investment, GH¢ Calculated annual yield, %
30/1/17 0.4274 0.4317 990
01/3/17 0.4343 0.4386 1006.02 19.42
30/6/17 0.4623 0.4669 1070.88 19.61
29/9/17 0.4847 0.4895 1122.77 20.12
29/12/17 0.5067 0.5118 1173.73 20.25
30/1/18 0.5153 0.5205 1193.65 20.57

Note that the initial value of the investment was GH¢990 due to the front-end load of 1%.

As depicted in the table, the longer the money stayed invested in the fund, the closer it got to their reported annual yield of 20.55%.

Depending on the kind of money market fund, the yield can even be more concentrated at the latter part of the investment period. This is because some fund managers invest significant portion in bonds, which require relatively more time to mature. Hence, to benefit from the proceeds of these bonds (upon their maturity), you may need to stay invested for a while.


Considering portfolio rebalancing 

Due to the different growth rates of various investment assets, it is usual to notice changes in your portfolio mix over time.

For instance, depending on your investment goal, you may be having 40% of your assets in short-term investment products, 20% in equity funds, 10% in stocks and 30% in real estates.


However, because of the outgrowing pace of your equity fund or stocks, you realise that the percentage of your short-term products significantly reduces from the 40% to about 25%.


In order to restore it to the 40%, you may be required to withdraw some money from the outgrown equity fund to be deposited in the short-term investment account.

By doing this, you are rebalancing your investment portfolio. Note that rebalancing can also be done without going through the withdrawal process if you have extra source of fund to do so.

Imitate GSE performance returns using market weights

Investing on the Ghana Stock Exchange can be one way to secure financial independence in the long term. Notwithstanding, purchasing shares anyhow from the stock market may not yield you the desired good returns. This is likely to happen if you completely ignore the GSE composite index and your attempt to beat the market goes wrong.

Just recently, I wrote on the usefulness of GSE composite index to investors on the stock market. In the same post, I discussed about market weight and the significant role it plays when one attempts to copy or imitate GSE performance returns.

Market weight of a stock

Market weight (also referred to as Index weight) of a stock measures the degree of influence that a listed company can have on the overall performance of a stock market.

It is calculated by dividing the market capitalisation of a stock by the total stock market capitalisation. To know the market capitalisation of any stock, you multiply its share price by the total number of its listed shares. As share prices keep changing, the market capitalisations of stocks change accordingly.

Thus, the market weight of a stock may change from time to time in accordance with changing factors such as share prices and the number of listed stocks.

Impact of market weights on GSE performance returns

Since market weight depends much on a stock’s capitalisation, listed companies having higher market capitalisations would therefore have higher market weights.

Furthermore, the greater the market weight of a stock, the more impact a change in its share price can have on the GSE composite index, and for that matter the overall GSE returns.

For instance, the prevailing market weights of GCB bank and Ayrton Drugs Manufacturing are 3.07% and 0.04% respectively. In effect, a price change in GCB shares would definitely have a greater impact on GSE performance returns than an equally price change in Ayrton Drugs Manufacturing shares.

imitate GSE performance _ market weights _GCB vs AYRTON

In fact, majority of the listed companies barely have any significant impact on the GSE performance returns. African Champion Industries Limited, Camelot Ghana Limited and Sam Woode Limited are examples of listed companies whose market weights are approximately 0%


It is therefore not surprising that most mutual funds in the country invest in just a few of listed stocks, leaving the others out. If you take a closer look at the annual reports of the various mutual funds, you can see that the fund managers invest not even in half of the number of companies listed on the exchange.

For example, SAS Fortune fund invested in only 14 out of the about 35 companies listed on the Ghana Stock Exchange in 2015. HFC Equity Trust had similarly invested in 16 out of the 39 listed companies on the GSE in 2016. The fund managers may be doing so to concentrate more on potential performing stocks as well as stocks with high market weights.


See also: Investment diversification: Smart means to diversify your assets


Using market weights to match GSE returns

The average GSE performance return may be argued as not so impressive. Nevertheless, it outweighs earnings of other investment products, in particular savings accounts. Unfortunately, not every investor on the stock exchange is able to match the returns posted by the GSE.

You may be hearing series of positive updates about the stock market performance. Updates such as “GSE records 16.31% return in first half of the [2017] year”, “GSE begins second half of the [2017] year with impressive performance”, “GSE return for 2017 caps at 52%”, “GSE begins 2018 on a good note” and many more.

Yet, you keep wondering why these returns never reflect on your stock portfolio. Even though you have invested much on the Ghana Stock Exchange, the earnings on your stock portfolio appear to be far from the reported GSE returns.


One way to bridge the gap between the returns on your stocks and that of the GSE is to consider market weights of stocks during purchasing. As earlier mentioned, a lot of stocks listed on the Ghana Stock Exchange virtually have no impact on GSE performance returns due to their low market weights.

Frankly, there are some stocks that can even be tagged as ‘non-score’, due to their insignificant contribution to the GSE performance. Hence, if your portfolio is dominated by such stocks, the possibility of performing closer to the GSE return would be much less.


Since market weights and for that matter GSE composite index change with trading activities, it may be impossible to imitate the exact GSE returns. Nonetheless, by considering stocks with high market weights, the performance of your stock portfolio can, at least, get much closer to that of the GSE.

Your focus is to favour stocks with high market weights while taking critical look at their historical performance trends at the same time. Considering performance trends is necessary to avoid the tendency of locking up huge investments in poor-performing stocks.

In the link below, you would find the market weights of all listed companies on the Ghana Stock Exchange:

Market weights of listed companies on GSE

Stock market updates: GSE begins 2018 on a good note

GSE 2018

The Ghana Stock Exchange (GSE) has started the 2018 year with impressive results. In just about two weeks into the New Year, figures from the stock market have started showing signs of promising returns for investors.


At the end of trading yesterday (16th January 2018), the GSE composite index inched up to 2,817.66 points. This reflects a year-to-date return of 9.22%. In the same period last year, the stock exchange recorded 2.57%.


So far, 14 out of the 39 listed companies have recorded some gains in the year. Prominent ones among them are GCB bank Limited (GCB), CAL bank Limited (CAL), Ecobank Ghana Limited (EGH), Enterprise Group Limited (EGL), Ecobank Transnational Incorporated (ETI), Ghana Oil Company Limited (GOIL) and Total Petroleum Ghana Limited (TOTAL).


Total Petroleum, for instance, has recorded a year-to-date return of 36.26% as of 16th January 2018.This is followed by GCB bank, which has so far recorded 34.46% in the same period.

Similarly, Ecobank Ghana Limited has posted a year-to-date return of 18.29%, followed by Societe Generale Ghana Limited, with 14.63%.


Other companies with positive results include Ghana Oil Company Limited (13.75%), Ecobank Transnational Incorporated (12.5%), CAL Bank Limited (11.11%) and Enterprise Group Limited (10.81%).


The rest are Standard Chartered Bank (GH) Ltd. (4.55%), Benso Oil Palm Plantation Limited (2.94%), Guinness Ghana Breweries Limited (1.94%), Agricultural Development Bank (1.37%), Fan Milk Limited (0.56%) and Unilever Ghana Limited (0.47%).


Meanwhile, Access Bank Ghana, HFC Bank (Ghana) Limited and Produce Buying Company Limited have recorded losses in the same period.

Access Bank and HFC Bank have lost 6.17% and 6.47% of their share prices respectively. Likewise, Produce Buying Company Limited has shed 16.67% of its value.

DIY: The impact of do-it-yourself on your finances

DIY _do it yourself

My late uncle Paul nicknamed me ‘commando’ in my childhood days, all because of my keen interest in movies at the time. Well, it appears that interest never died out except that it expanded from action movies to other genres- comedy, drama, adventure or even horror so long as the storyline is exciting. Watching movies, in particular Hollywood movies, has long been one of my hobbies.

Now, there is a particular feature about Hollywood movies I admire. It concerns how the movie performers often utilise DIY (do-it-yourself) approach to fix repairs in their homes. If you have equally been following Hollywood movies, you would realise that routine home repairs are generally done by individuals or couples without paying extra bucks to professionals.

Do-it-yourself, abbreviated as DIY, is the concept of repairing, modifying or doing things on your own instead of hiring an expert.


DIY _do it yourself
          ‘I can fix it; so can you’


See also: 4 SMART financial decisions I had made in the past

The scope of DIY

DIY has primarily been popular in basic home repairs. Nevertheless, the concept continues to spread across many different fields, even in challenging areas. In fact, DIY now extends to the building of start-up businesses by entrepreneurs who prefer to stay on a budget. For example, many online business owners utilise DIY approach to build and run their companies on their own.

Do-it-yourself goes along with having some skills in different specialised areas. This could be crafting, painting, tailoring, masonry or even carpentry. In a way, it exposes you to extra skills to be able to solve various basic problems.

DIY _interior painting
A couple employing DIY skills for their interior painting


There is something extra in every being. We only have to discover and put them into good use. Arguably, we were not born holding onto a single talent or skill. Rather, the era of specialisation has shaped us so, limiting and confining us to specific sectors. Specialisation conditions our minds in a way that we ignore our strengths in other fields.

DIY _specialisation effects

Encouraging do-it-yourself habits in your lifestyle can however shape you into a multi-skilled individual, with the capacity to resolve general basic issues like the ones listed above.

Impact of DIY

Imagine the cost savings if you were to personally fix a number of issues on your own. To some extent, every task you do on your own corresponds to money savings since you avoid paying an expert. That is what DIY primarily aim to achieve. Even though the savings per each task may not seem significant, overall, DIY can cumulatively have a positive impact on your finances in the long term.

Besides the potential savings, do-it-yourself can help you fix or make things in the very way you want. With the appropriate skills and tools, it is likely that you would take your time to make things to your own satisfaction. Just like Napoleon stated:

If you want a thing done well, do it yourself

Taking advantage of internet resources

A number of DIY fields require some knowledge and skills. Surely, we need something to accomplish something. Fortunately, with the growing pace of internet, access to information is now closer than it used to be decades ago. The internet is great- Maximising the use of it can be very helpful. Thanks to the internet, you can easily do a lot of stuff you couldn’t do before. On a daily basis, several thousands of how-to tutorials keep flooding online. Even though some may not be up to expectations, dozens of existing quality ones can still serve as useful resources.


I have in particular made use of online resources to get things done on my own. More recently, I was able to fix a television on the wall after following online tutorials. I may not be able to estimate the savings I made. However, I do believe that the cost of hiring a technician to mount the television on the wall could be somewhat significant.


Likewise, I learnt how to prepare ‘shito’ after watching video tutorials on YouTube. Shito is a popular pepper sauce in many Ghanaian communities. Although my first attempt tasted crispy, subsequent ones were fabulous that I turned out to be shito-cooking mentor for my wife 🙂


Moreover, it is the existence of online tutorials and tools that has helped me build and run sikasem.org to date. Indeed, many website owners, with less technical know-how, similarly depend on online tutorials to manage their sites.

DIY Toolbox

One of the means to successful DIY, particularly for home maintenance, is to have a well-stocked toolbox in place. Having just the skills may not be complete without applicable tools. At the least, you may begin with handy tools such as tape measure, screw driver, hammer, plier, spanner and other simple tools.

DIY _toolbox
DIY may not be complete without appropriate tools


It is however advisable not to suddenly spend huge money on tools you would hardly use. Definitely, purchasing tools only to find them in idle state would not be worth it. Importantly, you should start with a few basic tools you would regularly need. As your DIY skills improve, you can then invest more in other tools. During this stage, you may add tools such as handsaw or even a power drill just like what I used to mount my television on the wall. The main focus is to go by stages, instead of jumping immediately to fix bigger issues.

You may also like: Six financial habits to put you in shape

The bottom line

DIY (do-it-yourself) extends broadly to different areas, beyond home repairs. Employing a few DIY skills in your lifestyle can be useful considering the potential positive impact on your finances. It could be clipping your hair on your own instead of going to the barbers, especially if you maintain simple hairstyle. It could be doing your own manicure or pedicure instead of going to the salon. It could even be making your own gift packages for seasonal holidays and parties. What about planning your wedding on your own instead of hiring a wedding planner?


Don’t be limited by your core profession- Try your hands on other things and put your vocational skills to work for your benefit. Finally, take advantage of the useful tutorials on the internet. A simple online search can yield answers to help you fix problems. Certainly, your first try may not be that perfect but just like they say, “Practicing makes a man perfect”.