The Ghana Stock Exchange (GSE) is 30 years old. It is one of the 29 stock exchanges in Africa. The GSE which currently publishes two indexes: the GSE Composite Index and the Financial Stock Index, historically, has been amongst the best performing indexes in the emerging markets. However, in the last decade, for example, 2014 2020, performance slumped on the stock market but the GSE Fixed Income Market yielded attractive returns. While stocks were down, economic growth which averaged a low 2.8% from 2014 2016, accelerated to 7% from 2017 2019, (Calculated from Ghana Statistical Service data). Holding regard to economic outturns, market expectations would be that in an expanding economy, stocks should do well.

Required:

You are a Portfolio Manager of the Black Star Fund, a locally licensed Fund Management Firm. Briefly draft two business cases to the following class of investors:

1. To your target institutional investors (local and foreign) to invest directly in the GSE indexes (combined indexes or any single index) or through your open-end fund, Starlight Ace Fund, a local market index fund.