Investment Policy

Twin Huts Limited (THL) is registered as a private limited liability company whose key object is to conduct the business of an investment company. The registered share capital of the company is Kenya shillings One Hundred Thousand (Kshs 100,000) divided into One Thousand (1,000) ordinary shares of Kshs 100 (One hundred) each. The shareholders are the alumni of Starehe Boy’s Centre and School. The key object of THL is to pool and manage the shareholders capital for growth through investments.

THL shall pool together the savings of shareholders from among its shareholders. The initial target is to raise a capital base of Kshs 100m (one hundred million) by placing 1,000 shares at a price of Kshs 100,000 (one hundred thousand) per share by the end of June 2006.

The initial targeted capital of Kshs 100 million is further planned to make it possible for the company to establish more investment schemes in future. THL plans to ride on the capital base to create and maintain a sustainable power to mobilize further savings for investments in future.

The driving force behind the formation of THL is to position the company to undertake investments in the ongoing privatization by the government of Kenya and the region. By pooling together the shareholders’ capital, THL will enable the shareholders to collectively and effectively participate in the acquisition of shares in businesses and assets of the companies being privatized.

The investment policy of THL as a company shall be to seek high returns from investments commensurate with acceptable levels of risk to shareholders capital. The choice of the composition of the investments (asset classes and securities), shall be guided by the following considerations:

1. The shareholders risk-return expectations and profile.

2. The investment horizon.

3. The liquidity needs of the company.

4. The core business orientation.

5. The overall capital markets expectations.

6. The level or mount of investment under consideration at any time.

Investment vehicles/Portfolio Structure

The following are the general class of assets shall be considered for investment by THL.

1. Treasury Bills and Treasury Bonds in all major world currencies

2. Cash deposits – Fixed/Call/Term deposits in all major currencies

3. Equities in listed companies both in Kenya and outside

4. Collective Investment Schemes

a. Mutual Funds

b. Unit Trusts

c. Equity Funds

d. Bond Funds

e. Hedge Funds

5. Real Estate

6. Commercial Paper

7. Corporate Bonds

8. Private Debt instruments

9. Municipal bonds

10. Mortgage Securitization

11. Private Equity

Target returns

The target returns on investment shall be a capital gain of above 40% per annum.

Strategy recommendations

THL shall maintain an aggressive approach to equities as an investment strategy while accumulating capital.

Management

THL shall undertake the management of investment internally. The investment committee shall remain the investment manager for THL.