FIRST FUND LIMITEDFUND MANAGER’S REPORT TO SHAREHOLDERS

EXTRAORDINARY GENERAL MEETINGNOVEMBER 2020

01 Fund Manager’s Profile

02 Fund Assets and Liabilities

03 First Fund Assets as at March 29, 2020

04

05

06

Validation and Confirmation

First Fund Assets as at October 31, 2020

Valuation of the Fund1

PROFILE OF FUND MANAGER

DATE OF ESTABLISHMENT

2014

PRODUCTS AND SERVICES

Mutual Funds,

Private Wealth Management,

Advisory

BUSINESS ADDRESSC122/3 Farrar Avenue, Asylum Down, Accra.

T: 0307 002 624 M: 0577 680 810

E: info@ttlcapital.com

W: www.ttlcapital.com

LEGAL NAME

TTL Capital Limited

REGULATORY LICENSE

Fund Manager’s License from the Securities and Exchange Commission (SEC), Ghana

BOARD OF DIRECTORSSeth Emmanuel Oteng

Samuel Dentu

Florence Aggrey-Fynn

Rev. Dr. Solomon Tetteh Nortey

Efua Filson Fynn

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mailto:info@ttlcapital.com

Following its appointment as Fund Manager of First Fund Limited in January 2020, TTL Capital

Limited (TTL Capital) underwent regulatory assessments and approval by the Securities and

Exchange Commission (SEC). The company eventually signed a Fund Management Agreement to

manage First Fund Limited (the Fund) on March 29, 2020. The status of the Fund as at March 29,

2020 was as follows:

FUND ASSETS AND LIABILITIES

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First Fund Limited 29 March 2020

Number of Shareholders 24,456

Total Liabilities GHS 169,599,243.81

Total Assets GHS 176,515,486.00

Component of Portfolio

Value at Mar. 29,

2020 (GHS)

% of

Portfolio

Bank Account Balances 4,482,940 2.5%

Fixed Deposits with Banks 20,313,615 11.5%

Receiver - Microfinance Companies 19,385,948 11.0%

Receiver - Savings & Loans & Finance Houses 44,426,292 25.2%

Defunct Fund Managers 21,000,120 11.9%

Other Financial Institutions 30,519,943 17.3%

Commercial Papers 36,386,628 20.6%

Total 176,515,486 100.0%

The components of the total assets are analysed below:

First Fund Assets as at March 29, 2020

FIRST FUND ASSETS

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First Fund Assets as at March 29, 2020Components of First Fund Portfolio

2.5% Banks- GHS 4.48m

11.5% FDs with Banks - GHS 20.31m

11.0% Receiver –MFIs - GHS 19.39m

25.2% Receiver – SDIs - GHS 44.43m

11.9% Defunct Fund

Managers - GHS 21.0m

17.3% Other Existing

Financial Institutions - GHS 30.52m

20.6% Commercial Papers -

GHS 36.39m

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VALIDATION AND CONFIRMATIONV a l i d a t i o n / C o n f i r m a t i o n o f a l l i n v e s t m e n t s w i t h c o u n t e r p a r t i e s

i s c r u c i a l t o d e t e r m i n e t h e f i n a n c i a l s t a t u s o f t h e F u n d

BANK ACCOUNT BALANCES

FDs WITH BANKS &

OTHER FINANCIAL

INSTITUTIOMS

COMMERCIAL PAPERS

RECEIVER BALANCES

DEFUNCT FUND

MANAGERS

Some Fixed deposit investments

have been confirmed. Work is

ongoing to confirm / validate

investments with other

institutions.

Investments with Fund Managers

closed by SE C in 2019. Claims filed

pending validation and payment

subject to Government’s bailout

package.

Following much delay causing TTL Capital to complain to

SE C, the Receiver began confirmation of validated

amounts after SEC’s correspondence with Bank of

Ghana and Receiver in August 2020. Validation

processes are ongoing.

These are exposures to the former Fund

Manager being placements to private entities

through the fund manager as arranger. The

assets have been referred to First Fund Board

Committee on Finance, Assurance and Risk for

review and recommendations. The sub-

committee’s work is ongoing.

Bank account confirmations were obtained

from the Fund’s bankers including Stanbic

Bank the Custodian.

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Work Done by Fund ManagerOctober 2020

7

First Fund Portfolio Nature of Work

Bank Balances and GOG Treasury

Bills

GOG treasury bills maturities rolled over with top-ups from bank

account balances.

Fixed Deposits with Banks and

Other Financial Institutions

Ongoing discussions with Consolidated Bank Ghana and DCI

Microfinance to confirm investment balances.

Defunct Fund Managers Engagements with PWC on validation of claims against three

Fund Managers included in the 22 whose liquidation orders have

been processed by the Official Liquidator.

Receiver Balances A number of engagements with Receiver’s representative on

validation of remaining claims.

STATUS OF VALIDATIONS / CONFIRMATIONS

31 OCTOBER 2020

Overall, 25.5% of the Fund’s portfolio has been validated / confirmed with counterparties .

100% 8% 38% 22%

25.5%

BANK ACCOUNTS

FDs with BANKS

RECEIVER- MFIs

RECEIVER- SDIs

DEFUNCTFUND

MANAGERS

OTHER FINANCIAL

INSTITUTIONS

GOGBILLS

COMMERCIALPAPERS

100% 0% 70% 0%

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Component of Portfolio

Value at Oct

31, 2020 GHS

% of

Portfolio

Bank Account Balances - Confirmed 232,564 0.1%

GOG Treasury Bills - Confirmed 4,585,631 2.6%

Fixed Deposits with Banks - Confirmed 1,546,238 0.9%

Fixed Deposits with Banks - Yet to be confirmed 18,662,905 10.5%

Receiver - Microfinance Companies - Validated 7,366,547 4.2%

Receiver - Microfinance Companies - Yet to be validated 12,019,401 6.8%

Receiver - Savings & Loans & Finance Houses - Validated 9,823,191 5.5%

Receiver - Savings & Loans & Finance Houses - Yet to be Validated 34,603,101 19.5%

Defunct Fund Managers - Yet to be Validated 21,000,120 11.8%

Other Financial Institutions - Confirmed 21,757,947 12.3%

Other Financial Institutions - Yet to be confirmed 9,378,287 5.3%

Commercial Papers – Yet to be Confirmed 36,386,628 20.5%

Total 177,362,558 100.0%

Summary of Validation / Confirmation Status of

Portfolio

Value at Oct 31,

2020 GHS % of Portfolio

Balances Confirmed / Validated 45,312,117 25.5%

Balances Yet to be Confirmed / Validated 132,050,441 74.5%

Total 177,362,558 100.0%

FIRST FUND ASSETS AS AT OCTOBER 31, 2020

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Considering that the Fund Manager has yet to complete validation and confirmation of the portfolio

as stated above, valuation of the Fund’s investments is planned as follows:

• Valuation of total portfolio with validated / confirmed investments: By this approach pricing of

the investment will be based on assets validated and confirmed as the validation processes are

completed.

• To enable the fund manager to focus on validations of investments, shareholders are expected

pass or carry the resolution to withhold redemptions for the period up to March 31, 2021.

• The external auditors of the Fund, PKF Chartered Accountants, will be engaged to review the

entire process and report to shareholders.

• The Fund Manager’s status report as at March 31, 2021 will be presented to shareholders.

We understand that shareholders are keen to establish their current investment balances. However, note

that although TTL Capital is committed to hastening the process, due diligence is required to examine and

undergo all the processes for the validation / confirmation of the Fund’s portfolio. Shareholders are

hereby assured that when these process are completed, TTL Capital will be rightly positioned to manage

the Fund in the best interest of all its shareholders.

On behalf of the Fund Manager, kindly accept our appreciation for your patience, support and the

confidence placed in TTL Capital. It is our sincere prayer that First Fund will thrive and flourish to achieve

its objectives and prosper shareholders as expected.

VALUATION OF THE FUND

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