Vetiva to List First Bond Exchange Traded Fund on NSE
By Goddy Egene
Vetiva Fund Managers Limited is set to list the Vetiva S&P Nigeria Sovereign Bond Exchange Traded Fund (VS&PETF) on the Nigerian Stock Exchange (NSE).
When listed on October 24, the VS&P ETF would be the first bond ETF to be listed on the NSE, giving investors access to Nigerian Federal Government Bonds in retail investors. It will also provide an opportunity for every Nigerian to invest in Federal Government Bonds. At current pricing, investors will be able to purchase a unit for as low as N150 and have access to attractive bond yields.
Speaking on the product, the Managing Director of Vetiva Fund Managers Limited, Mr. Damilola Ajayi said: “The listing of the VS&PETF traded fund is in line with the federal government’s plan to enhance financial inclusion. For the first time in Nigeria, investors now have access to Federal Government Bonds through a product that will be listed on the NSE.”
According to him, the ETF, when listed, will trade like any other stock, and the Fund plans to effect distributions to its unit holders twice a year. Subsequent to listing, investors will be able to trade the fund on the NSE through any stockbroker.
Vetiva listed the first equity ETF (The Vetiva Griffin 30 ETF, which tracks the performance of the NSE 30 Index) in March 2014.
The stocks are selected based on market capitalisation from the most liquid sectors and liquidity is based on the number of times the stock is traded during the preceding two quarters. To be included in the index, the stock must be traded for at least 70 per cent of the number of times the market opened for business.
Vetiva also listed the first set of sectoral ETFs (Vetiva Banking ETF, Vetiva Consumer Goods ETF and Vetiva Industrial Goods ETF) in October 2015.
ETF is a security that tracks the performance of a specified security or other assets including stocks, basket of assets, indices, commodity prices, foreign currency rates, and derivatives among others.
Vetiva Fund Managers Limited is registered with the Securities & Exchange Commission to carry on business as fund/portfolio manager. The company is primarily engaged in fund and asset management through sponsoring and issuance of mutual funds, ETFs and other collective investment schemes as well as private wealth management.