Management of GCB Capital Limited has stated that about GHS 7.77 million has been credited to the accounts of some two hundred investors of the 20 defunct fund management companies that have been cleared by the court for their liquidation.
This comes days after the official liquidator of the 53 defunct fund management companies, Jemima Oware, announced that payment of bailout funds for the first batch of investors of the companies, whose licenses were revoked by the Securities and Exchanges Commission (SEC) begun last Thursday 8th October 2020.
Speaking to Citi Business News, Managing Director of GCB Capital, Kofi K. El-Awuku, stated that the two hundred investors are included in the first batch of investors who had submitted their redemption requests.
“So the clients of the 20 for whom liquidation orders have been received and gazetted were invited to voluntarily sign on to the program and the number we got at our last check was a 2852. And out of these, the total number that have actually had their redemption request processed since redemption window opened on Wednesday is about 200,” he said.
“For those who have submitted redemption request and have had these processed and paid it’s just under 200 but the number of those actually submitted is immediately hard to tell as the request keeps coming in, and we need to actually have a process of determining the submissions that we have received and collate them. However, payments to the first batch of over 170 investors amounted to GHS 7.77 million,” he added.
He also stated that the bailout programme is being implemented via a special purpose entity, the Amalgamated Mutual Fund PLC which paves way for claims of over 2,850 investors amounting to GHS 563.65 million.
Mr. El-Awuku, also explained that the fund has a Tier 1 component from which clients who have completed the onboarding process are currently able to redeem shares for cash with 48 hours, and Tier 2 component which is long-term in nature with withdrawal restrictions.
“The vehicle that we have created is a mutual fund with various underlying assets. However, this being a special bailout intervention by government, we have received funding from government to do principally two things. Immediately, to make payouts to those who have been crying for money for a while and also do a bit that is a managed fund portion. Indeed, the fund is called the Amalgated mutual fund PLC. It has two components. The tier 1 which enables clients to immediately access a bit of their investment and tier 2 component which is more long term. Our job is to manage the immediate needs of clients with big terms,” he said.