Sunday, April 30, 2006

Recruitment: Board Members

Are you a well known and well trusted individual in EvE?
Do you want to invest and be part of EMFi?
All you have to do is sit in EMFi with an alt and watch your investment get huge!
In addition you are encouraged to give expert advise on EvE financials!


Benefits and Perks:
  • Ability to purchase Stock in Phase 1 of the IPO
  • Ability to influence the direction of your investments
  • Be part of something great!
  • 2.5% of the profits directly paid to the Board of Trustees.
  • In addition to your significant dividend payments

Apply now! evemail Naphtalia with your main.

(An extensive background check will be done; only well known and well trusted individuals need to apply. EMFi is an equal opportunity employer; we employ without discrimination against race, subrace, gender, religion, security status, faction, alliance, corporation and age. Females and Minmatar are specifically encouraged to apply for this position)

Share Offering Schedule


Shares will be offered in the following phases:

Phase I: Recruitment (4th of May 2006) Generating Trust
In this phase we will try and recruit Fund Managers and Board members, these individuals will have to be trusted by EMFi and by the EvE populace in general. In order to be considered for any of these positions you will need to invest a minimum of 50,000 shares in this venture which do not qualify for the buy-back scheme for 3 months. Personnel will be allowed to place an alt character into the corporation with suitable roles. 20% of the total amount of shares are available for this phase. Good candidates for this position are Alliance Leaders and Captains of Industry. Payment for EMFi shares with shares from current portfolio will be considered.
  • Amount: 50,000 share blocks
  • Target: Fund Managers and Trustees
  • Price: 10,000 isk / share

Phase II: Institutional Investors (7th of May 2006) Generating Critical Mass
In this phase we target wealthy individuals and corporations, institutional (anonymous) investors are allowed to purchase shares in blocks of 100,000 shares. 40% of the total amount of shares are available for this phase. Payment for EMFi shares with shares from current portfolio will be considered. Please contact Naphtalia or EMFi manager to arrange such a stockswap.

  • Amount: 100,000 shares minimum
  • Target: (Anonymous) Institutional Investors and Wealthy individuals
  • Price: 10,150 isk / share

Phase III: EvE Online Populace (11-18th may 2006) Generating a Market
This phase the normal IPO will be launched we will partner with organisations like EIB and brokers of EGSE for brokering this phase of the IPO. This IPO will last for a week. After this stage the EMFi will be listed on the exchanges and free trade in this derivative can commence and EMFi will use the 90/110 rule for trading EMFi stock.

  • Ammount: 1 share
  • Target: everyone in eve rich or poor that wants to be part of EMFi
  • Price: 10,300 isk / share (+ broker fee for smaller orders)


All capital raised in phase 1-3 will go directly to corp & shareholder value first dividend planned for 15th of June and every month on the 15th afterwards

90/110 rule: Pending availability of liquid cash EMFI will provide buyorders @ 90% of NAV for EMFI shares. If liquid cash runs out EMFI will try and liquidate some assets in order to provide these buyorders. Pending availability of shares EMFI has the option to sell shares to the open market through sellorders. However it must do this at minimal 110% NAV.

Personnel

The following personnel will be active in EMFi: (this post will be kept up to date with new information)

Fund Managers:
Fund Managers are responsible for the daily operation of the Mutual fund, they will have to have trust by the trustees and the shareholders and know their business. 2.5% of the profits they manage will be split over between the Fund managers.


  • EMFi Manager- (Alt of Naphtalia) - Naphtalia has extensive experience in stock and derivatives markets, this is a main character prominently visible in the EVE community also fielding diplomatic and leadership positions.

Board of Trustees:
The Board of Trustees have expressed trust in this endeavour, they will have access to corporate functions which requires mutual trust from the fund managers, other trustees and shareholders. The trustees will ensure confidence with the traders as being auditors, advisers and investors. The trustees have got the junior accountant role for auditing purposses and can run for CEO if they acrue 5% of the shares (in the case of the chairman and fundmanagers getting hit by a bus). The Chairman has director access to be able to liquidate assets. (in the case the fundmanager gets hit by a bus)

  • Naphtalia: Investing 300,000 shares (3%)
  • Zzazzt: Investing 50,000 shares (0.5%) (Chairman)
  • Omber Zombie: Investing 50,000 shares (0.5%)
  • Femintaki: Investing 240,500 shares (2.4%)
  • Taladorn: Investing 20,000 shares (0.2%) (DD Officer)
  • Shiva Shakti: Investing 50,000 shares (0.5%) (DD Officer)

Example Montly Portfolio Statement

THIS IS AN EXAMPLE
Total: 105bil
Cash: 35bil
  • Wallet: 12b
  • Buyorders: 10b
  • Corporate Account(4%): 3b
  • Savings Account (6%): 10b

Shares: 70bil

  • 2.5b - 100 ISSPO @ 25M (-400 shares) (-20%) (54.000 isk last dividend) (high-risk)
  • 20b - 1000 ISSMO @ 20M (+300 shares) (+1%) (1mio isk last dividend) (blue chip)
  • 7.5b - 500 T2AHL @ 15M (+100 shares) (+3%) (0.0 isk last dividend) (startup)
  • 1.0b - 2,000 ESINV @ 500k (+1,000 shares) (-10%) (15.000 isk last dividend)
  • 30b - 2,000 EIBI @ 15M ( -- ) (0%) (1.2mio last dividend) (blue chip)
  • 9.0b - 1,000 TRNSP @ 9M (+500 shares) (+25%) (1mio last dividend)

Figure 1&2 : Portfolio overview

Example monthly Financial Statement

THIS IS AN EXAMPLE
Message:
This month went extremely well; the shares of the presumed dead company DR-C which we picked up for 500isk/unit came alive again. The CEO was had been on a break and paid out dividends of 300isk/share and the shareprice went up to 5,000 isk again. We sold 50% of our position in DR-C for a big profit. ISSPO has dropped again, BoB has conquered their outpost and are asking a 10bil ransom fee. I am continuing to diminish that position. Disappointing dividends of ESINV, but with their dropping shareprice I was able to get another 10,000 shares for a reasonable price.
Statement: FMFeb06/EMFi
Last month NAV (ad): 112.08b
Profit: 18.16b
  • from interest/dividends received: 5.08b
  • from asset value increase: 13.08b

Payments: 15.53b

  • Management Fee: (5% of 18.16b) 908mio
  • Dividends: 14.9b (85% of 18.16b) (1,490 ISK per share or +14.9% over nominal value)
New NAV: 113.9b
New Intrinsic Stockvalue: 11,396 isk (+1.6%)
marketmaking:
New buyback price: (90% of 11,396) 10,256 isk
New relisting price: (110% of 11,396) 12,535 isk
Link to current Portfolio
Link to previous statement

Investment Example


Conservative Prospectus
The conservative estimate below shows how investing 100M (10,000 Shares) in EMFi could increase your ISK from 100m to 200m in 12 months time. The only two actions required by you is to buy them and then sell them to EMFi the price shown is the guaranteed buy-back price of EMFi of 90% under NAV. This example assumes the fund manager achieves a result starting at 1.5% growing to 10% in 6months time and the investor uses the buy-back scheme instead of selling the shares on open market.

Initial Target Portfolio announcement

We will try to get the following balance in our portfolio (subject to change)

By Branch:

  • Cash: 20% (cash account, savings account, wallet, and ISK sitting in buy-orders)
  • Financials: 10% (Shares in banking, investment banking and securities companies)
  • Real Estate: 20% (Shares in real estate, outposts, POS operations)
  • Services & Logistics: 20% (Shares services Companies such as: Mercenary, Piracy, Transport companies. Also logistic companies that play the market)
  • Production: 30% (Shares in companies that do production, such as Tech2 or Capital ship Production companies, including the selling BPC copies)

Figure: portfolio by branch

By Risk:

  • Blue Chip Companies: 60% (Companies like: ISSx, BIG and Big Blue sponsored companies)
  • Normal Stock: 20% (Companies like: T2AHL, Everyshore Investments, Eve Investment Bank)
  • High-risk/High-reward, Scam and dead shares: 10% (Companies like: Stingy CEO, Alvarin Enterprises)
  • Start-ups: 10%

Figure: Portfolio by risk factor

Profit and Dividends

Projected dividends are hard to predict since EMFi is a derivative fund and the profit depends on the stock and IPO markets. The Stock Exchange in EvE is very young, hedging, options or going short isn't an option for EMFi so our success is related to the success of the stock issueing companies.

We expect to be mostly building up our portfolio and capital in the first months and projected net results range from 1.5% in June rising to more then 10% in 6 months time. This would result in a projected dividend payment of 128/share in june 255/share in july, and 1,000/share in december. Our fundmanager gets compensated based on performance alone, with a negative result the fundmanager and trustees will get no salary, with the projected june result of (1.5%) he would get 37.5M in salaries and this payment is directly related to his investment result.

Figure: projected result, invested capital and dividends

We are aiming to achieve a minimum of 7.5% dividend in 6 months time where 10% of the profit comes from interest, 40% of the profit comes from underlying stock dividends and the other 50% from stock trading (buy low sell high) and IPO underwriting.

Figure: profit source



Profit will be calculated based on this months NAV compared to last months NAV.

  • 85% of the profit will be issued as dividend to the shareholders
  • 2.5% of the profit will be issued as salary to the fund manager
  • 2.5% of the profit will be issued as corporate dividend (salary for trustee alts)
  • 10% of the profit will be used for fundgrowth and reserves against shareloss

Figure: profit distribution

EMFi - Stocks

EMFi is a Unit Trust, consisting of 10,000,000 shares (ten million) with a default nomination of 10,000 isk (ten thousand). The stakeholders in this unit trust are Fund managers, Trustees and unit-holders (shareholders)

Structure:
  • The fund manager runs the trust for profit.
  • The trustees ensure the fund manager keeps to the funds investment objective and safeguards the trusts assets.
  • The unit-holders have the right to the trust assets

Each month the NAV (net asset value) will be calculated based on total Trust Assets divided by Total Shares in the Fund.

EMFi will guarantee your investment through their buyback scheme, EMFi will also be market making their own stock (pending availability for shares to sell).

Buyback scheme: EMFi will register buy-orders for EMFi shares at 90% of NAV/Share value and will sell (pending availability) shares at minimum 110% of NAV/Share value (1 week after the IPO).

Activities and Opportunities

EvE Mutual Funds [EMFI] will be participating in the following activities and will perform an enabling, facilitating and leadership role in these areas.
  • Market making: Managing bid/ask spread on the Stock Exchanges providing liquidity and preventing excess volatility.
  • Underwriting: Vouching for new IPOs, buying critical mass of shares before & during the IPO to ensure company success, and facilitating release to market.
  • IPO Fund: Investing in IPOs in order to resell stock at premium
  • Mutual Fund: Investing in Blue Chip Companies to generate ISK from dividends and stock increases
  • Private Investing: Bankrolling a Ltd Company before it goes public

Derivatives Secure your Securities

Mission Statement: Maximizing shareholder value by becoming the market leader in the securities market in the Intergalactic EvE Universe.

Background: It has come to our attention that with the vast number of IPOs and different stocks floating around it is hard to know which stocks to invest in.

Questions arise like: "Is this IPO a scam?" "This looks too good to be true, but if it is true I don't want to miss out!" "I want a piece of that stock but can't afford to pay 30Mio for a share, that would be betting all my isk on 1 horse!"

EvE Mutual Funds [EMFI] will analyze and pick the best stocks and IPO's for you and also guarantee the quality of your stock. Investing in EMFI means you spread your capital over a prime list of Public Companies as well as participate in the good IPOs (and avoid the Bad ones).

Acting as a Fund Manager we can afford to strike good deals due to underwriting IPOs, getting discount with brokers and the stock exchanges, and we can afford to research companies and their background/relationships properly. This will also free up capital and facilitate growth of the stock market and minimize bid/ask spread. The low volume of some stocks turns people of.

The Market making department of EMFI will make sure there is a good bid/ask spread and volume on the Stock Exchanges and your ISK is being reinvested very fluidly. Due to the spreading of risk we are able to invest part of our capital into high-risk-high-reward investments which you would like to invest in, but don't dare to. And into long term low volume investments where you will still gain profits even though it would be hard to cash in your profits if you would have invested personally.