The Asset Management business of FBNQuest (a part of the FBN Holdings Group) has launched two new mutual funds – the FBN Nigeria Smart Beta Equity Fund and the FBN Nigeria Eurobond (USD) Fund, in a bid to proactively address the need for credible alternatives to invest local and dollar denominated funds.
The FBN Nigeria Smart Beta Equity Fund is purely an equity fund, which invests money predominantly in a portfolio of Nigerian companies by using a rigorous, research-based and tested evaluation system to determine the most investible stocks on the Nigerian Stock Exchange.
On the other hand, the FBN Nigeria Eurobond (USD) Fund is a fixed income fund that predominantly invests money, and generates income as well as capital appreciation in dollar denominated debt instruments issued by the Nigerian government and corporates.
Thus, clients can invest their dollar directly in the fund, as current income from the fund’s underlying securities provides attractive returns. Unit holders will also receive returns in dollar from semi-annual dividend income.
The Smart Beta fund has a minimum investment of N50,000, while the Eurobond Fund requires a minimum of $1000 for retail investors and $100,000 for institutional and high-networth investors.
According to Michael Oyebola, Managing Director/Chief Investment Officer of the Asset Management business, the key value propositions of the two new funds are to allow both individuals and institutional investors take advantage of opportunities on dollar instruments and the stock market, which may not be readily accessible due to high minimum investment amounts; and enable them achieve profitable diversification of their investments.
“We have introduced these funds as we seek to create value-driven connections with our clients by helping them look beyond today,” Oyebola said.
“Being a member of one of the strongest and most dependable financial groups in Africa, our goal is to constantly provide solutions to support their evolving needs, and the opportunities for diversification through these two new funds further affirms our client-centric approach to service delivery.”
He added that the Smart Beta Fund will invest money across all sectors, and investors will be able to purchase and sell units in the Funds throughout their existence in line with the company’s commitments to encouraging savings and financial inclusion.thewill,