We provide services where our clients - individuals or corporates - can buy and sell their shares through the Dar es Salaam Stock Exchange. For most knowledgeable investors, this primarily means actioning their instructions.
For the majority, however, it includes answering such questions as: Is this a good buy? Is the price right? What benefits can I expected and when? Is it better than the shares of the other companies? What are the procedures? Amass a bit of wealth before investing, or live from hand to mouth?
We always advise such clients: think big, begin small, begin now. Our role is to pace them through these stages.
CORE is strategically located at Twiga House in the heart of the city´s financial district, which makes for seamless access by most investors to other financial or business institutions.
Valuation of Shares and Other Securities
This is done for both quoted and unquoted shares. We have established large and up-to-date data bases of company profiles, financial statements, market performance and macro-economic indicators. These are essential in the valuation of all types of securities.
From these we are able to identify mis-priced shares, growth shares and those at their peak. In this way we are able to advise clients not only on the most appropriate price but also on the critical question of the timing of the decision to buy or sell.
In the Stock Exchange, things are never bad or good necessarily – they are just different. The trick is how the investors position their investments in anticipation of the outturn within their planning their horizon.
Foreign Investment Services
With the ongoing globalization of markets, increasing deregulation of foreign exchange matters and financial systems in general, Tanzanians are increasingly able to invest outside the country while foreigners are already allowed to invest in Tanzania under the auspices of the Tanzania Investment Centre or the DSE Foreign Investors Rules. It has also become necessary for local players to identify foreign correspondents with whom they can work in extending services to mutual clients. Foreign investors have also increasingly found Tanzania's metrics to be ideal for their diversification into emerging markets, tapping on the DSE's poor liquidity which has generally led to undervaluation of DSE stocks.
All such transactions are handled through Standard Chartered Bank T Limiited as our Global Custodian. CORE Securities is best placed to provide such value-added services through its international network of correspondents, which is also there to enhance business opportunities for our clients wherever they may be. Local and foreign investors have benefitted from cross-border listings on East African, Regional and international bourses, thus providing wider diversification opportunities. Through our presence in Rwanda, we virtually regard the EA Region as one.
CORE´s philosophy is such situations is to cultivate strategic alliances with like-minded firms of repute. From these relationships we are able to bring to the combined market the latest that research and scholarship can offer, without losing touch with the practical and proven in each jurisdiction. So far we have standing relationships in Ghana, UK, USA and S. Africa.
Portfolio Selection and Diversification
CORE Securities assists clients to build balanced investment portfolios with the objective of optimising both return and security. At CORE, we are able to advise clients on a wide selection of investment opportunities available, sometimes across borders. These range from simple investments like Treasury bonds and bills, corporate bonds, banks deposit and certificates of deposits; through equity and preference shares, real estate, commodities and bullion; to complex products like options, derivatives and off-balance sheet assets. We believe that successful management of one´s finances is first and foremost a question of allocating the investor´s financial assets rather than emphasizing any one investment vehicle. In turn, this must be based on the individual circumstances and objectives of each investor. Some investors are risk averse: they would rather be safe than sorry; other investors are risk seekers - they would do anything if the price is right.
Specifically for corporate clients, CORE Securities places at their disposal comprehensive data bases, expertise and contacts in the financial community. Working with their experts we are able to design effective strategies to address particular corporate financing requirements, such as:
a) Raising money in the Capital Market
For institutions that are desirous of raising development funds in the market, CORE Securities assists in organising public issues, private placements and syndication of loans and flotation of both corporate and institutional bonds. If these are to be publicly traded, we are there to see to the necessary formalities before introducing the securities to be listed on the Stock Exchange. Our role would be as Lead Advisor to the IPO or as Sponsoring Broker, both of which we have done several times in Tanzania. Having worked with other professionals, we are able to identify the optimal pricing of the IPO and the best manner of getting regulatory approval for it.
b) Feasibility Studies
Feasibility studies are conducted by CORE Securities´ experienced consultants to help clients make decisions for specific problems. The final write-ups normally include bankable business plans that we are happy to work with the client in getting funding from the banking system. In most cases, this will be a prelude to longer term strategies for stock exchange listing, or the introduction of new products to the capital markets.
c) Expansion via Mergers and Acquisitions
We have particular strength in designing long term corporate plans that contain complete SWOT analyses. Where expansion is desired the analyses would indicate whether this is best achieved through internal growth, external purchase of facilities, or whether the best way is via acquisition of existing corporate entities. It is also possible to achieve synergy through the merger of two or more entities, including the client, by pooling of their interests. Our primary role would be to advise on suitable M&A partners, fending off hostile advances from unsuitable bidders, shareexchange mechanism, the accounting framework on the treatment of pre-merger profits, the pricing of balancing securities and preparation of the necessary information memoranda upon which negotiations between the parties can take place.
Our track record in tanzania's M&A case began from our involvement in a multidisciplinary tean appointed to assist the Regulator in initial conceptualisation of exposure draft Regulations. These were discussed within the industry and a final version used by CMSA for onward perfection with the Government to result in the M&A Regulations of 2002. CORE Securities were privileged to assist Tanzania Tea Packers PLC (TATEPA) in the first use of the Regulations when the company's founders were able in 2011 to buy out their venture capital strategic partner.
d) Management/Employee Buyouts; Employee Share Ownership Plans
An increasingly used route to privatisation is the use of MEBO schemes whereby, depending on the market specifics and the regulatory framework, managements and/or employees are allowed to buy the entity´s business from its existing owners, typically the Government or family-owned firms.
On the other hand, we have particular expertise in structuring ESOPs: employee share ownership plans. These are guaranteed allotments to staff in an IPO (3% to 5%, useful in the event of an oversubscription), funded by the Issuer via a trust, repayable from the proceeds of staggered sale of the shares. This ploy invariably leads to staff morale in line with best-practice good corporate governance expectations.
In both cases, our role would be to advise on the valuations, payment mechanisms, sourcing of venture capital and other funds and setting up the initial legal form.
In-house training courses and seminars can be organised, tailor-made for companies or specific groups to address perceived gaps in knowledge or best practices. General, open-door programs can also be arranged on topical issues to suit a wider range of clients, for example on ongoing develo-pments in new regulatory frameworks, the operations of the Stock Exchange, finance and accounting for non-accountants, and such like. We have particular noted expertise in conducting professional courses in banking and accountancy, for final examinations of the Tanzania Institute of Bankers and the National Board of Accountants and Auditors.
For any number of reasons, investors may occasionally find themselves with surplus funds. In such situations, it is important to determine what other forms of investments to undertake. Alternatively, in order to diversify investments, investors may wish to place some of their funds in shares and the rest in other money and capital market instruments.
In these situations, the most teething problem for the average investor is often the decision on when to sell, when to hold and when to buy. The answer to this, in turn, depends on active monitoring of trends in the stock exchange and the securities´ underlying markets.
CORE has the time, the resources, the databases and the tact to tenaciously follow such developments in a way that the average client cannot. As managers of the portfolio, we assure the client of high return commensurate with their financial circumstances and attitudes towards risk.
Collective Investment Schemes
The company plans to launch a number of CIS, including mutual funds, unit trusts, open-ended investment companies and other collective investment schemes. In such schemes, our role would normally be that of fund managers while reputable banks or insurance companies would play the role of trustees. We have developed proprietary software for registrar and asset management applications.
Collective investment schemes are intended not only to assist small investors participate in capital market activities, but also enrich the offerings on the stock exchange because the Fund Manager often supplies liquidity and credit enhancement in the role of market maker.
To bring such brokerage services to a wider spectrum, the company will endeavour to open branches in some of the major towns and settlements, working together with local community organisations such as parishes, co-operatives, savings and credit unions and other grassroots initiatives.
Registrar and Custodian Services
Keeping track of regulatory, tax and other mundane aspects of even the most basic investments requires a sizeable management information systems that keeps up to date track of developments; otherwise the investor risks missing profitable sell-or-buy opportunities, not to mention facing the possibilities of stiff penalties from the authorities.
Once we have opened an account for you and obtained your execution instructions, we shall hold your affairs in a datesensitive data base that is triggered into action by a defined list of events. We shall hold your securities in custody or register them in your name or any other custodian.
We shall sort out your tax affairs and other statutory returns, chase up your dividends or scrip issues, obtain all annual accounts, send you regular statements and authoritative research bulletins on developments.
Although commissions will be charged for these services, they will be on a sliding scale based on size and frequency. Other than a token retainer fee paid on account-opening, there will be no other charges.
To rich out to more individuals, companies and institutions CORE is in the course of increasing its nation-wide network of broker representatives and agents. The ultimate objective is to have a representation in every part of Tanzania, plus agents and corresp-ondents in selected centres in East Africa and the SADC Region.
We have established an interactive website, www.coresecurities.co.tz where clients can send inquiries, download current prices and application forms and generally keep abreast of events in the stock market. For most investors this is sufficient service for them to make up their mind and all that remains is then just to transmit their orders. Where these have an account with us already, it cuts costs (in terms of money and time delays) by almost 50%.