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Project Investment Program


Project Investment Program

Nature and Description Project Investment Program (PIP) exists to provide initial funding for selected MEA projects while providing MEAns an opportunity to invest their own money in the organization for a modest return. Moreover, it aims to educate MEAns on the value of investment through participation in the project, as well as monthly investment articles that will give MEAns a glimpse and an idea of the importance of investing for the future. This project, due to its monetary characteristic, will be made available only to juniors and seniors as they should have a better understanding of investments.


Project Investment Program Historical Financial Data of Ateneo Management Engineering Association Cash Flow Statement SY 2008-2009 Cash Inflows Operational Budget from AdMU

Php

30,000.00

Subsidy from AdMU for Seminars, Trainings

Php

40,500.00

Paskong MEA Bazaar 08-09

Php 129,639.00

Powered by Paint - Net

Php

14,000.00

GAP1

Php

41,285.00

LEADS

Php 143,600.00

Expo Tour

Php 100,550.00

Others – Net

Php 114,811.93

Total Cash Inflows

Php 614,385.93

Cash Outflows Paskong MEA Bazaar-Expenses

Php

90,520.00

Paskong MEA Bazaar-Donation to World Vision

Php

7,000.00

Web & Pub

Php

11,600.00

SOM Week

Php

4,092.70

GAP1

Php

48,285.00

LEADS

Php 184,100.00

Expo Tour

Php 117,000.00

Kythe-MEA Reach Out

Php

Total Cash Outflows

3,880.00

Php 466,477.70

Net Cash Flows

Php 147,908.23

DCB Fund Beginning Balance

Php

DCB Fund Ending Balance

Php 151,923.23

Source: MEA Year-End Status Report

4,015.00


Project Investment Program Terms and Conditions of MEA Bonds 1.

Investors

· Only junior and senior members of the Management Engineering Association not belonging to MEA’s Central Board nor a core member (or AB) of MEA’s Project Investment Program (PIP) 2.

Return

· Whichever is higher between 10% of the purchase price or MEA’s net cash flows before interest and excluding any extraordinary income such as proceeds from Alumni homecoming events multiplied by the bid percentage, then divided by 40. Investors shall receive the lumpsum payment of capital+interest on Meamore week. 3.

Issue Date and Bond Maturity

· Bond will be issued on July 13, 2009 and will mature on MEAMore week. 4. In case of a zero-income or loss scenario, note that MEA will have reserve funds to repay the principal+10% of the purchase price 5. Secondary market trading is permitted, provided bond holders disclose the transfer of the MEA bonds, as well as the agreed upon trading price by both the seller and the buyer. MEA would not interfere nor


Project Investment Program recommend the fair value of the bond at a particular point in time. 6. A maximum of Php2,000 or 4 bonds is allowed per person. 7. There shall be a bid ceiling of 4%, thus prospective investors must submit bids between 0-4% only in denominations of 1/10 (one tenth) of a percent. Thus, in the event of a bid violating the said condition, the bid shall be rounded up to the nearest tenth of a percentage. (ex. 3.05%>>> bid up to 3.1%) 8. In case of identical bids, the earlier bid shall be prioritized. 9. MEA does not recognize joint holders of a bond. Only one person shall be recognized as the bond holder. 10. Bond holders will be provided with project financial information and updates every month to monitor their potential returns, and estimate a fair value for the bond in case holders want to trade in the secondary market.


Project Investment Program

Sample computations of returns MEA Profit: P150 000 Profit percentage bid: 2% Bond value: P500 Interest profit: whichever is higher between 10% of bond value, and 2% of 1/40 of MEA’s profits or a. 10%(500) = 50 b. 2%(1/40)(150000) = 75 = Interest Profit Total Amount Received at Year’s End = Capital + Interest = P575


Project Investment Program

Table of Returns Bid Percentage MEA Cashflow 150,000

4%

3.5%

3%

2.5%

2%

1.5%

1%

150

131.25

112.5

93.75

75

56.25

50

140,000

140

122.5

105

87.5

70

52.5

50

130,000

130

113.75

97.5

81.25

65

50

50

120,000

120

105

90

75

60

50

50

110,000

110

96.25

82.5

68.75

55

50

50

100,000

100

87.5

75

62.5

50

50

50

90,000

90

78.75

67.5

56.25

50

50

50

80,000

80

70

60

50

50

50

50

70,000

70

61.25

52.5

50

50

50

50

60,000

60

52.5

50

50

50

50

50

50,000

50

50

50

50

50

50

50

40,000

50

50

50

50

50

50

50

30,000

50

50

50

50

50

50

50

20,000

50

50

50

50

50

50

50

10,000

50

50

50

50

50

50

50

0

50

50

50

50

50

50

50

Return


Project Investment Program Returns Chart 160 140

4% bid 3.5% bid

120

3% bid

100

2.5% bid 80

2% bid 1.5% bid

60

1% bid

40 20 0

MEA CASHFLOWS


Project Investment Program

Monthly Updates Monthly updates containing the following will be emailed to all investors:  Interesting investment article  Updates on projects and financial statements of projects. Dates to Remember July 10 (Friday, 4:30-6:00): Investor's briefing July 10-17: Bidding Period July 20 (Monday, 4:30-6:00): Investor's Conference Meamore week: bond maturation and redemption of capital+interest by bond-holders.


Project Investment Program

INTEREST-ed? Follow these 3 easy steps to bid at MEA’s Project Investment Program! 1. Open your email anytime between July 10 and July17, 2009. *may change depending on the date of the briefing 2. Create an email containing the following information: Name:

Year and Course:

Bid percentage: (any bid between 0.0%4.0%) No. of Bonds: Bid Amount: (in Php) 3. Send the email to pipbids2009@yahoo.com with the following format for the subject: MEAPipBid_Name


Project Investment Program

PIP Primer  

Project Investment Program 0910