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Importance of
Education

Databank drives
quality education

comes in a two-tier structure. Tier

1 is designed to meet short-term
educational needs while Tier 2 is
designed to meet long-term needs
with an in-built life insurance policy
to further secure the future of your
child. So it doesnt matter how
soon you will need the money for
education, EdIFund simply gives you
the complete package.

Start today:

Planning ahead for tertiary education

is often the core of your childs future.
The earlier you begin saving, the better.
Quality education helps young people
sharpen their critical thinking skills
while acquiring new perspectives on the
world. When it comes to investing toward
the future, especially towards the allimportant education of your child, it pays
to be prudent with the choices you make.
Here are three simple steps to consider:

Whether you will be ready for the

cost of your childs education or not
depends on you. There is no better
time to start investing than today!
Make the right choice now and stay
consistent. Databanks Fund managers
are committed to making the best
decisions on your behalf.

Choose the right institution:

To meet the rising costs of your childs
future education, you need your money
to grow. And having worked hard for
your money, you should partner with an
institution that has a proven, long-term
track record like Databank. With over
26 years of demonstrated investment
expertise, you can rest assured your
money is in good hands with Databank.

Databank Educational Investment

Fund (EdIFund) is a mutual fund
created to help you and I invest
towards
financing
educational
needs both current and longterm. EdIFunds innovative two-tier
structure offers you the complete
package when saving for education.

Choose the right product:

How does EdIFund work?

There are many ways to plan, invest, and

pursue that educational goal. Databank
provides a range of mutual funds, one
of which is the Databank Educational
Investment Fund (EdIFund). This Fund

EdIFund has three key components

that make it a first in the Ghanaian
mutual fund industry: a short-term
investment component (Tier 1) for
current and recurring educational

What Universities look

out for in applicants
needs, a long-term investment
component (Tier 2) for future
educational needs, and a built-in
Life and Total Permanent Disability
Insurance cover to protect your
investment in the event of tragedy.
Tier 1 gives you a better return than
a traditional savings account. Funds
in Tier 1 are invested primarily in
fixed-income securities with the
option to invest not more than 30%
in equities. This investment strategy
helps to minimize the fluctuation
of returns within this Tier. There
is a recommended minimum
holding period of three months for
investments made into Tier 1.
Tier 2 is ideal when saving towards
future educational needs. With
a longer-term outlook, the Fund
Manager is seeking a higher return
on funds invested within this Tier.
As such, up to 60% of funds within
Tier 2 may be invested in equity
investments, which have historically
outperformed
all
fixed-income
investments. An embedded life and
total permanent disability insurance
cover is also included in Tier 2. This
insurance cover will match your
funds in Tier 2 up to GHC 20,000.
To ensure that your money benefits
from the Fund Managers stock
selection, Tier 2 has a recommended
minimum holding period of 5 years.
This blend of a two-tiered strategy
combined with the insurance cover
makes
Databank
Educational
Investment Fund a first in the mutual
fund industry.
Continued on page 2

Benefits of the Fund

Peace of mind
At Databank, we understand how stressful it
can be, worrying about how to balance your
daily budgets and still invest in a manner
that ensures your child will receive the
quality education you desire for him or her.
EdIFund offers you both stability and the
potential for growth in the same investment.
This stability will come from maintaining a
well-diversified portfolio of fixed-income
securities within the Fund, while the growth
potential will come from identifying and
investing in companies with quality management teams, competitive
positions, regular profits and good cash flow positions.
Protection
Databank has partnered with Ghanas leading and most trusted insurance
provider, Enterprise Life Assurance Company, to offer EdIFunds Tier
2 investors an embedded life and total permanent disability insurance
cover. This ensures that in the event of death or total permanent disability,
your balance (including deposits and returns) in the Tier 2 portion of the

Databank
drives quality
education
The foundation of every state is the
education of its youth. At Databank, we
care about the education and future
of young Ghanaians. We understand
the importance of quality education
and the impact it can have on the
future of Ghanaian children as they
transition through academic phases,
and finally into the work force. In this
light, Databank held the 2nd edition
of the Databank Leadership Series
in the second quarter of 2016 at the
Alisa Hotels (Ridge Arena).

account is not only covered, but matched up to

a maximum of GHC 20,000. Your child can still
realize his or her dream of a better education.
As long as your monthly premiums are paid, and
the account balance is GHC 100 or more, your
insurance cover is guaranteed.
Proven fund management experience
Databank has been successfully managing
investments and creating wealth for Ghanaians,
both on a local and international scale, for
over two decades. Our Fund Managers use a
team approach to manage all Databank mutual
funds, including EdIFund. This helps ensure
information and ideas are shared, discussed
and debated. They use their knowledge and
experience, as well as creativity, imagination
and entrepreneurial spirit to identify unique
investment ideas they believe will provide you
the investor with attractive returns over time.
At Databank, managing your money is our first
priority, and your investment in EdIFund will be
no different.

The event focused primarily on

education, under the theme Financing
Quality Education that is Globally
Relevant. The event took the form
of a panel discussion with Anis
Haffar, founder of GATE Institute
and Columnist in the Daily Graphic,
Dr. Esi Ansah, Managing Director of
Axis Human Capital and Lecturer at
Ashesi University, Mr. Michael Inkoom,
Director in Charge of Secondary
Education, Dr. Naomi Agyepong of
Alpha Beta School and Kojo AddaeMensah, Group CEO of Databank.
The discussion revealed that the
educational
foundation
received
by many children is weak and can
be attributed to the poor execution
of the national curriculum; poor/
non-existent school facilities; and a
growing teacher/student ratio among

others. The Leadership Series drew the

attention of various stakeholders to the
rising cost of quality education in Ghana,
the importance of Ghanaians being able
to finance quality education and the
role we all have to play in ensuring that
children get access to quality education.
The views of some stakeholders present
suggested that the adoption of less
privileged schools by schools that are
more privileged will contribute immensely
to the development of underprivileged
schools and also expose students to
quality education. Should schools support
other schools with resources to boost
education, the quality of education will
not be segmented to bourgeois schools,
but will be seen throughout the education
system in Ghana. If our children are our
future, then quality education is the right
of every Ghanaian child.

Would your life

be different if
you knew then
what you know
now?

Databank Foundation, the charitable wing of the Databank Group, in partnership with Street Library Ghana (SLG) launched the Read Aid
Literacy program in March 2016. This new initiative, targeted at Public Schools, is aimed at contributing to improved learning outcomes
at the basic level through reading.
The need to improve literacy levels of children in Ghana is real. A 2014 report on the findings of The Early Grade Reading Assessment
in Ghana, stated that for the average 9 year old, 50% scored zero in their knowledge of sounds of letters, while nearly 40% of the pupils
scored zero in English listening comprehension in Greater Accra.
Beyond working to empower Ghanaians to achieve financial independence, Databank is expanding its contribution to Ghanas
Development by focusing on education. In the first quarter of 2016, 200 Pupils of the Adabraka Cluster of schools were led in guided
reading by volunteers and staff of the Databank Group. A preliminary literacy assessment test was conducted to enable staff volunteering
on the project to help each child to read at her/his own pace.
We hope that through this initiative, our values of leadership, excellence, humility and integrity will transcend to the next generation and
breathe life into the words of Margrette Fuller, Today a Reader, tomorrow a Leader.

Time for bargain hunting

Research
Corner

The Ghana Stock Exchange (GSE) has struggled in 2016 following unimpressive results released by most listed companies. The poor
performance was mainly due to the macroeconomic conditions, coupled with the erratic power supply faced by the general business
community in 2015. Year to date, the return on the stock market (measured by the GSE Composite Index) has declined to -9.96%
(29.07.16). This negative sentiment in the market, however, presents bargain hunting opportunities for investors as most stocks are
trading below their real worth. We expect market activity on the GSE to remain low as investors continue to adopt a wait-and-see
attitude in anticipation of the imminent 2016 national elections.

Have an investment question?

E-mail it to marketing@databankgroup.com
Answers will appear in subsequent issues

Just for Laughs

The most successful

investor was Noah.
He floated stock,
while everything
around him went
into liquidation.

1. Strong grades and an upward trend

Admissions officers value grades that represent strong effort. Grades on your Senior
High School academic transcript should show an upward trend over the years.

2. Quality involvement in activities and community service

Universities look for students who are well-rounded and not just bright scholars. They look
out for students who have demonstrated leadership and initiative, who have participated
in activities such as sports, music and community service activities.
Continued on page 4

Top 5 things universities look out for in an applicant

3. A well-written essay
In some universities, an essay is required to be submitted in addition to all other application documents. The essay is a crucial part
of the recruitment process that provides insight into your unique personality, values and goals. The application essay should be
thoughtful and highly personal.

4. Positive recommendations from school personnel

Letters of recommendation from teachers and guidance counsellors give evidence of integrity, special skills and positive character
traits. Students should request recommendations from teachers who respect their work in an academic discipline.

5. Other special attributes or awards

Include honours, awards, evidence of unusual talent or experience, or anything else that makes you unique. Overall, universities are
seeking students who will be active contributing members of the student body.
One major item to prioritize among your future goals is planning
ahead for your childs tertiary education. This stage is undoubtedly
the centrepiece of your childs future and a little savings can go a
long way over time.

According to Aristotle, The roots of education are bitter,

but the fruits are sweet. The rising cost of education
makes raising children more and more expensive. In
the last few years, tuition fees alone have ranged from
GHC 1,300.00 in Ghana to GHC 114,602.00 abroad per
year. Have you ever stopped to ask yourself this very
important question: Will I be ready for the cost of my
childs tertiary education?

The table below shows the cost of a four-year undergraduate

degree at a number of universities both local and international
(excluding accommodation, food and transportation). The table
also indicates amounts you will need to save on a monthly basis
in order to accomplish your goal. For example, if you want to set
aside money for your childs future four-year business degree at
the University of Ghana, you would need to invest GHC 92 per
month if you had a 15-year time frame or GHC 138 if you had a 10year investment time frame. In other words, the earlier you start,
the lower the amount you will need to invest to achieve your goal.
Theres no better time to start a consistent investment than now.
Consider the chart below for an illustration of how time and returns
can impact your ability to achieve your future educational goals:

Monthly Investment Table

University
of Ghana
Financial Goal

Number of
years before
university

GHC 16,524.00

Ashesi
University

London School
of Economics (UK)

University of
Toronto (Canada)

GHC 18,760.00

GHC 114,392.00

GHC 392,385.20

GHC 425,410.24

Central
University

20 years

68.85

78.17

476.63

1,634.94

1,772.54

15 years

91.80

104.22

635.51

2,179.92

2,363.39

10 years

137.70

156.33

953.27

3,269.88

3,545.09

5 years

275.40

312.67

1,906.53

6,539.75

7,090.17

The cost of education presented above is based on information provided on the website of the above institutions as at May, 2016. As indicated on their websites, their fees
are subject to change. Kindly contact the educational institution directly for their current fees.

Accra: 0302 610610 . Kumasi: 0322 080077 . Tema: 0303 213240 . Takoradi: 0312 023628 . Airport: 0577 702012 . Ashaiman: 0577 702015 . Cape Coast: 0577 702016
East Legon: 0577 702013 . Lapaz: 0577 739461 . Madina: 0577 739462 . Osu: 0577 702014 . Tamale: 0577 702017 . Tarkwa: 0577 702010
Website: www.databankgroup.com . Email: info@databankgroup.com