OBJECTIVES
The club is designed to achieve regular income within the expected performance of the Nigerian stock market and other financial market derivatives.
The income shall be distributed to unit holding members at a predetermined interval to meet immediate needs that occur frequently. The income distribution is expected to come in handy as a buffer to alleviate the financial burden of day to day living.
PROFILE
The club welcomes the participation of all Nigerians and non-residents as well. Students, traders, farmers, artisans, market women, entrepreneurs and unemployed youths.
DIVIDEND AND GUARANTEES
The club is committed in line with its investment objective to distribute the asset yield of the club at an annual or a predetermined interval. The yield/expected internal rate of return of the club is 30%
INVESTMENT OUTLETS
The club shall invest only on conditions of mutual agreement between the trustees and the fund manager. Investment outlets include and not limited to:
The Nigerian Stock Exchange
Money market instruments
Government bonds
INVESTMENT POLICY
The fund manager in agreement with the trustees is responsible for originating and processing investment targets in line with approved laid down procedures as set out below:
Investment should be in qualifying companies listed on the Nigerian Stock Exchange.
The club shall not invest more than 20% of its capital in any single company.
Management of selected companies should meet specific standards of integrity, capability, experience and commitment. Demonstrating commitment to sound financial practices, institution building and cordial relationship
Investment will only be made in quoted companies capable of achieving a rate of return of at least 30% using conservative assumptions.
Liquidity and exit strategies will be predetermined for each investment. The available options include trade limits, agreed third party buyout, discounted and rediscounted rates or any other qualifying strategy agreed upon by the club.
COSTS
The cost of the day to day running of the club will be charged against the expected net proceeds of the club. Such charges estimated at not more than 5.3% of the club’s investment capital include, advertising, printing, publicity, brokerage commission and management fees.
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