DAILY PRICE LIST FOR MUTUAL FUNDS, REITS and ETFS

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Lead Asset Management Floats Fixed Income Fund
By Goddy Egene
 
Lead Asset   Management Limited(LAML), a subsidiary of Lead Capital Plc is currently offering  five  million units of the Lead Fixed Income Fund (LFF) to investors at N100 each. A total of N500 million is expected to be realised from the offer, which opened  last Monday and will close on December 7, 2016.

The LFF is an open-ended fixed income fund registered as a unit trust scheme. According to the  LAML, which is the fund manager, the LFF is designed for all classes of investors who seek steady flow of  income, capital preservation and liquidity.

“The fund is constituted   under the thrust deed and will comprise government and Eurobond and corporate bonds with investment grade rating and other quality money market   instruments,” the firm said in the prospectus of the offer obtained by THISDAY at the weekend.

About 20 per cent of the fund would be invested in bonds, 60 per cent in treasury bills and 20 per cent in  commercial paper and other short term instruments. The minimum investment is N50,000 and a multiple of N10,000  thereafter.

The LAML offer is coming on the heels of a similar fund floated by Cordros Asset Management (CAML). The subsidiary of Cordros Capital Limited, had floated   a money market fund tagged  Cordros Money Market Fund (CMMF).

The IPO opened August 1 closed on September 7. Results of the offer showed that despite the economic headwinds characterised by liquidity challenges and high inflation, it recorded a subscription rate of 60.47 per cent.

“This is a very significant success rate given the challenging environment. The outcome of the IPO showed that investors found the offer attractive given its high returns potential. I am very positive that since it is an opened ended fund, more investors will buy into it as the economic situation improves,” a market operator, who is a party to the offer had said.
Specifically, at the close of the offer period, a total of 551 applications for 6,046,845 units of the CMMF were received;  2. 549 applications for 6,046,500 valid applications were partially allotted as the applications were not in line with subsequent  multiples.  Two applications were rejected as the funds deposited were below the minimum subscription.   The fund was therefore 60.47 per cent subscribed.

The fund’s investment objective is to provide capital preservation and regular income to unit holders by investing in high-quality money market instruments recognised by the Securities & Exchange Commission.