Stanbic IBTC Asset Management Floats ETF 40 and Dollar Funds (1)
Investors seeking to invest in managed funds and enjoy good returns now have another opportunity to do so as Stanbic IBTC Asset Management Limited (SIAML) has launched two new products. They are: Stanbic IBTC Dollar Fund (SIDF) and SIAML Pension ETF 40. The two funds have been officially opened following the granting of relevant approvals by the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) with SIAML acting as the fund manager to both funds.
The Stanbic IBTC Dollar Fund provides retail and institutional investors the opportunity to seek exposure in attractive dollar-denominated securities to serve as a devaluation hedge as well as to optimise returns on investments.
On the other hand, the SIAML Pension ETF 40 is an Exchange Traded Fund (ETF) that will mirror the Pension 40 Index (Pension Index), replicating as closely as possible the total return of The Nigerian Stock Exchange (NSE) Pension 40 Index. The Index, launched last year by the NSE to drive market optimisation, is a tracking mechanism for investors, particularly institutional investors like Pension Fund Administrators (PFAs), that invest in line with guidelines set out by the National Pension Commission (PenCom). The NSE Pension Index monitors the top 40 most capitalised and liquid companies in the market.
The initial public offerings (IPOs) for units of both the Stanbic IBTC Dollar Fund (SIDF) and SIAML Pension ETF 40 on Monday, 26 September 2016 and will close on Wednesday, November 2, 2016.
According to the fund manager, the signing of the enabling agreement by the various parties to the transactions had taken place on, September 6, 2016, when the directors of SIAML and all other professional parties indicated that the signing completed the initial phase of the previously announced plan to float the products.
Under the terms of the deal, the parties agreed to proceed with the solicitation of offers for 5,000,000 units of the Stanbic IBTC Dollar Fund (SIDF) available at $1 each and multiples of 500 units thereafter.
In the offering for the SIAML Pension ETF 40, there will be 10,000,000 units available for subscription at 100 each at par and multiples of 10,000 units thereafter. The Fund has an offer size of N1 billion.
Speaking on the funds, Chief Executive, SIAML, Bunmi Dayo-Olagunju said the Stanbic IBTC Dollar Fund and SIAML Pension ETF 40 was launched based on the need to spur the preservation and appreciation of wealth.