FBNQuest creates diversification and US Dollar investment opportunities locally –
Launches FBN Nigeria Smart Beta Equity Fund and FBN Nigeria Eurobond (USD) Fund
In a bid to proactively address the need for credible alternatives to invest local and USD denominated funds, 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.
The Managing Director/CEO of FBN Merchant Bank Limited, Mr. Kayode Akinkugbe has said that sound corporate governance should be entrenched in the banking sector as the key to strengthening the industry.
The FBN Nigeria Smart Beta Equity Fund is a pure 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 which predominantly invests money, and generates income as well as capital appreciation in USD denominated debt instruments issued by the Nigerian Government and Corporates.
This means clients can invest their USD directly in the fund, as current income from the fund’s underlying securities provides attractive returns. Unit holders will also receive returns in USD from semi-annual dividend income.
According to Michael Oyebola, the Managing Director and 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.
It was further gathered 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, 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’.
“We have introduced these funds as we seek to create value-driven connections with our clients by helping them look beyond today’ Oyebola stated. “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.”
FBN Capital Asset Management is the leading asset manager in Nigeria (by mutual funds under management as at 5th February 2016). Its Money Market Fund (MMF) had grown to become the largest in Nigeria with NGN92.88bn, the FBN Fixed Income Fund (FIF) is the largest Bond Fund with NGN4.61bn and the FBN Heritage Fund (HF) is also currently the largest Balanced Fund with NGN4.37bn. The firm was also recognised as the Best Asset Manager in Nigeria in 2014 at the EMEAFinance African Banking Awards in London.
In October 2014, FBN Holdings acquired 100% equity in Kakawa Discount House Limited, and subsequently secured approval to commence Merchant Banking operations as FBN Merchant Bank.The acquisition served as a strategic fit into the FBN Holdings portfolio and created an institution with a stronger balance sheet and access to a wider universe of funding sources.
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