MARSHALLAN SAVINGS AND INVESTMENT FUND (MaSIF) – What is it?
- INTRODUCTION
The Marshallan Investment Fund (MIF) was bedeviled with many challenges requiring massive re-structuring intervention to make it more attractive and appealing to contributors.
- Stunted Growth of the fund.
In the first place the fund experienced stunted growth resulting from:
- Excess of outflows over inflows. The demands made on it from SC & GC (for administrative expenses) being more than cash inflows from new initiates.
- Structural inadequacies. The structure targeted only one revenue centre – Annuity – as an inflow which is woefully inadequate to make impart as an incentive strategy.
- The scanty Annuity payments being made directly into SC & GC accounts and virtually not easily available for investment purposes.
- Fund managers being paid from the Fund every year whether the Fund is growing or not.
- Lack of effective financial commitment coupled with weak instructional procedures at the Local and Regional levels to ensure MIF levies are promptly remitted to the appropriate account.
The need therefore to undertake re-branding of former Marshallan and Investment Fund (MIF) is rife and cannot be overemphasized. The purpose is to make the fund more beneficial to serve the needs of all contributors, namely the individual brothers and sisters, the Regional councils and Courts as well as the Supreme Council and the Grand Court. The re-branding hence abolishes the previous MIF by replacing it with a fresh fund mobilization and investment strategy structure consisting of institutional share holders made up Supreme Council, the Grand Court, the Regional Council and Court as well as the component Council and Courts. In addition to the shareholding structure each brother and sister member contributes a minimum savings which is invested for a determined period to earn a return on investment sufficient enough to cover all DUES and LEVIES established in the Order.
The name shall be MARSHALLAN SAVINGS AND INVESTMENT FUND with the acronym – MaSIF.
The tag line shall be: MaSIF – “FUND FOR THE LIVING”
MaSIF is a one-time payment for shares allotted or savings made for investment. It is not a levy.
- OBJECTIVE
The objects of the fund are:
- To free contributors from annual payment of dues and levies in the Order
- To free the Order from being dependent on members for financial sustainability ( EXCEPT SUBSCRIPTION PAYMENT)
- To promote thrift among its members by providing them a means of savings.
- To provide assistance to institutions within the Order to establish businesses.
- To provide quality financial services to these institutions to manage such businesses.
- FUND OWNERSHIP & STRUCTURE
3.1 The fund shall be owned through share holding by: Supreme Council, Grand Court, Regional Councils and Courts; Local Councils and Courts
3.2 Individual brothers and sisters make savings with the hope of reducing future financial obligations to NIL COST or covering ALL yearly dues and levies and use the balance to improve their personal economic circumstances.
- GOVERNANCE
The fund shall be managed by a 7 member Committee (4 Knights and 3 Ladies) with expertise in fund administration. i.e. Investment Analysis, Fund Management and Resource Mobilisation.
At the Regional level a team of three members shall be appointed to monitor and coordinate receipts and payments of contributions.
At the Council or Court level there shall a MaSIF mobilizer with an assistance who shall collect, record and bank proceeds in a designated bank and report to the MaSIF Management Committee (MMC).
- CONTRIBUTIONS
- MaSIF is based on a 2-5-12 fund mobilisation, investment and distribution strategy.
- Fund mobilization is for a period of 2 years; i.e. 2017 – 2018.
- Each member contributes a minimum of GH¢1,200.00 in 2 years or GH¢50.00 per month for 24 months (GH¢1,200 in total).
- A share in the Fund shall cost GH¢100 and each participating institution shall hold minimum shares as follows:
- Local Level: Each Council and each Court – 50 Shares = GH¢5,000.
- Regional Level: Regional Council OR Court – 100 Shares = GH¢10,000.
- Supreme Council 500 Shares = GH¢50,000.
- Grand Court: 500 Shares = GH¢50,000.
- INVESTMENT INSTRUMENTS
- These shall consist of: Treasury Bills, Note, Fixed Deposits etc as advised by fund managers
- After mobilisation period of the 2 years total amount is invested for next 8 or 9 years at a minimum Treasury bill rate of 18% p.a. (T-Bill rate being the benchmark)
Note: The higher the Treasury bill rate the higher the Return on investment to all savers and share holders and the shorter the MATURITY period of investments.
| Range of Interest Rate | Payout Rate | Start of Disbursement |
| 17% – 20% | 50% PA | Start disbursement in year 9 |
| 21% – 25% | 70% PA | Start disbursement in year 8 |
- From year 6, each contributor shall receive back a minimum of 50% of capital contributions a year for ever.
- There shall be NO PAYMENT OF DUES AND LEVIES AT ALL LEVELS as Gh¢600.00 of each contributor’s receipt (the minimum of which is equal to total ANNUAL DUES and LEVIES) shall be used to set off all DUES AND LEVIES.
- There will be no payment of DUES AND LEVIES except SUBSCRIPTION OF perhaps GH¢20.00 a year. (ON CONDITION THAT TOTAL DUES AND LEVIES PER YEAR IS WITHIN GH¢600.00).
- On condition that each Council or Court is able to enrol a minimum of 30% of its membership, in year 18 an amount of about Gh¢5m shall be disbursed as follows for investment in business project:
- Each CONTRIBUTING Council: Gh¢50,000
- Each CONTRIBUTING Court: Gh¢50,000
- Each CONTRIBUTING Regional Council: Gh¢100,000
- Each CONTRIBUTING Regional Court: Gh¢100,000
- Supreme Council: Gh¢200,000
- Grand Court: Gh¢200,000
- Start year proposed is 2017.
- All withdrawals are made by 31st December and all investments are made on 1st January
- Membership of the MaSIF is optional and membership application form shall be filled in by any prospective member.
- A separate bank/investment account shall be opened and operated for the purpose.
- Each application shall be followed by a non-refundable registration fee of Gh¢10.00
- Each member shall have a pass book.
- All contributions for MaSIF shares and or savings shall be paid direct in the DEDICATED ACCOUNT AND NOT TO BE COMINGLED WITH Council/Court bank accounts.
- Upon completion of payment for MaSIF each participating member shall be issued a Certificate of Membership which serves as a receipt.
- Each Council or Court shall appoint two persons: a MaSIF Officer and an Assistant MaSIF Officer to be solely responsible for collection and banking of MaSIF monies.
- MaSIF monies SHALL BE Banked into the dedicated MaSIF Bank Account on the next available working day.
- Quarterly statement of account shall be prepared for distribution to all Regions, Councils/Courts.
- There shall be MaSIF management meetings consisting of Regional Representatives every half year.
- Regular quarterly Report on performance of MaSIF shall be given at every local, Regional Advisory Board meetings as well as Supreme Council and Grand Court Standing Committee meetings.
- After the close of the 2 year CONTRIBUTION CYCLE every subsequent year new initiates/non-member transferees/late comers shall start a dedicated cycle.
- Any contributor who wishes to withdraw can do so and his/her entitlement shall be purchased by the Fund.
- MaSIF shall be advised by fund managers who are brothers and sisters with investment banking expertise.
- Like all financial intermediaries and a not-for- profit making organisations the accounts shall be audited annually by an External Auditor.
- QUESTIONS
- What happens when I die before fund matures for disbursement.
Ans: Your contribution shall be bought by the existing shareholders and capital and return on investment paid to your next of kin specified in the application form.
- Can I resign anytime?
Ans: Yes, and your entitlement shall be treated as in question above.
- How do I make payment of my contributions/savings?
Ans: At Council/Court meetings to a dedicated individual selected for the purpose. Or walk to the MaSIF Office (if opened)
- Can I save more than the minimum? If I do what will be my annual returns? Ans: Yes you can save more than the minimum. Council/Court can buy more shares than the minimum and your returns shall be the 50% of total contribution on maturity.
- What is the difference between MaSIF and the MST? Any relationship?
Ans: MaSIF is purposely to ensure that Councils and Courts become financially independent of dues paid by members while the MST is to provide subscribers (brothers and sisters) a savings plan for each and every one who contributes to it.
SUMMARY: MaSIF
| S/N | BASIS | MaSIF |
| 1 | Objective | To generate ROI to cover dues and levy payments; Any surplus for personal recovery plan |
| 2 | Capital Base | Share holding plus savings |
| 3 | Mobilisation Structure | Shareholders buy minimum no. of shares: SC & GC=500 shares; Reg. Council & Court = 100 shares:Local Cl & Ct = 50 shares each.
Each member contributes minimum of Gh¢1,200. |
| Membership Evidence | Completed Application form, Certificate of Membership and Pass Book | |
| 4 | Duration Of Mobilisation | 2 YEARS |
| 5 | Ownership | All institutional structure in the ORDER: SC/GC, RCl/RCt, Adult Cl/Adult Ct |
| 6 | Investment Instruments | All instruments in the money market |
| 6 | Distribution Of Benefit (Roi) | Year 6: Each shareholder and savings holder receives 50% of contribution every year for ever.
Years 12: Amount of Gh¢10,000,000 shall be made available for distribution to Council/Court; Supreme Council/Grand Court. Year 22: Gh¢10,000,000 shall be set aside to support improvements in Welfare Scheme and the Medical fund Year 26: Gh¢20,000,000 is made available for establishment of in insurance company. Year 40: Gh¢40,000,000 is set aside for modernization of SC and GC. Year 33: Gh¢100,000,000 is set aside for establishment of a medical facility. |
| 7 | Management | Experienced member Fund Managers in the Order |
| 8 | M&E | Team put together by SC & GC |
| 9 | Reporting & Accountability | Quarterly, Half yearly, Annually. External auditor appointed by the Order |
| 10 | Records To Keep | Membership contribution/ownership lists, relevant financial records etc. |
- Can MaSIF have a negative influence on the growth of MST
Ans. MaSIF will not have a negative influence on the growth of MST as they have different objectives, purposes and strategies.
- What happens to the previous MIF contributions?
This balance of Gh¢300,000.00 shall be invested by MaSIF as a start-up fund for all brothers and sisters.