Stanbic IBTC Asset Management Limited, a subsidiary of Stanbic IBTC Holdings Plc, on Monday, listed Stanbic IBTC Money Market Fund, which is currently the largest open-ended mutual fund in Nigeria. With close to N190billion in net asset value as at February 9, on the FMDQ OTC Securities Exchange platform, the listing will provide opportunities for investors to diversify their portfolio, and hedge against market uncertainties,
Also listed alongside the money market fund are Stanbic IBTC Money Market Fund (SIMM), Stanbic IBTC Bond Fund (SIBOND), and Stanbic IBTC Dollar Fund (SIDF).
As at December 2017, net value for bond fund was N1.07billion, while the Dollar fund was $18.3million
SIMM assets are invested in low-risk money market securities with financial institutions in Nigeria with a minimum rating of “BBB” by a local rating agency recognised by the Securities and Exchange Commission. SIMM is suitable for investors with low risk appetite whose objective is capital preservation while generating a steady stream of income.
Similarly, SIBOND Fund was designed to cater for investors with low risk appetite who want no exposure to capital markets but require liquidity and at the same time want to earn competitive returns available in fixed income markets.
SIBOND provides easy unrestricted access to Nigeria’s rapidly developing bond market, enabling individual and corporate investors to invest in a diversified portfolio of bonds and other fixed income securities.
The Fund aims to achieve competitive returns on assets, while safeguarding capital by investing in a diversified portfolio of high quality bonds issued by government, supranational and corporate bodies.
Minimum subscription for both SIMM and SIBOND is N5,000.The SIDF launched based on market need and investor demand, 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. SIDF offers investors outlets for investing an initial minimum of $1,000.00 and subsequent minimum of $500.00.
The Chief Executive, Stanbic IBTC Asset Management, Mrs. Bunmi Dayo-Olagunju, said considering the volatility in the equities and commodity markets, it is imperative for investors to diversify their portfolios by investing in mutual funds and other investment vehicles.According to her, the attractiveness of mutual funds or collective schemes is hinged on the numerous benefits it offers over other investment vehicles, such as flexibility, liquidity, steady returns, professional management, and risk reduction, among others.
She said StanbicIBTC will continue to leverage its expertise in asset and wealth management, built over 20 years as well as the Group’s rich heritage in corporate and investment banking. This will provide quality products and services that will not only deepen the market but enhance transparency, add value and lead to investor confidence.
The Chief Executive Officer, FMDQ, Mr. Bola Onadele Koko, described the listing of the mutual funds as a major development that would help in deepening the Nigerian capital market.He reiterated FMDQ’s unwavering commitment to continuously provide and disclose pertinent information on investment and issues listed on its platform, and willingness to partner with other stakeholders to sustain an efficient, transparent and well-regulated capital market in Nigeria.
The Executive Director and Head, Debt Capital Market, Stanbic IBTC Capital Limited, Kobby Bentsi-Enchill, said the company has sponsored many listings on the FMDQ’s platform.He said Stanbic IBTC is excited with the remarkable growth of the fixed income market, as this is vital to the creation of liquidity, and pledged that it will continue to work with regulators and operators to establish a world-class capital market in Nigeria.