By Destiny Day
Special Correspondent
Two new products, the Stanbic IBTC Dollar Fund (SIDF) and SIAML Pension ETF 40, are now on offer following approval by the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE).
Stanbic IBTC Asset Management Limited (SIAML) is the fund manager of both funds.
SIDF provides retail and institutional investors the opportunity to seek exposure in attractive dollar-denominated securities to serve as a devaluation hedge as well as optimise returns on investment.
SIAML Pension ETF 40 is an Exchange Traded Fund (ETF) that will mirror the Pension 40 Index (Pension Index), replicating as closely as possible the total returns of The NSE Pension 40 Index.
The Index, launched last year by the NSE to drive market optimisation, is a tracking mechanism for investors, particularly institutional investors like Pension Fund Administrators (PFAs), that invest based on National Pension Commission (PenCom) guidelines.
The Index monitors the top 40 most capitalised and liquid companies in the market.
The initial public offerings (IPOs) for units of both Funds opened on Monday, September 26, 2016 and will close on Wednesday, November 2, 2016.
The signing of the agreement by all the parties to the transactions took place on September 6 when the directors of SIAML, the fund manager, and all other parties agreed the signing completed the initial phase of theplan to float the products.
The parties agreed to proceed with the solicitation of offers for 5,000,000 units of SIDF, available at $1 each and multiples of 500 units thereafter.
SIAML Chief Executive Officer (CEO),BunmiDayo-Olagunju, said: “We believe that even in these volatile times, the Fund will foster the diversification of portfolios and investments in currency terms, which in turn will help in the preservation and appreciation of wealth for investors.”
In the offering for SIAML Pension ETF 40, there will be 10,000,000 units available for subscription at 100 each at par and multiples of 10,000 units thereafter.
SIDF has an offer size of N1 billion.
SIAML primarily aims to provide investors access to the most liquid publicly quoted companies on the NSE that comply with requirements for investing pension assets in terms of taxable profits, free float, dividend, sector and individual stock weighting.
“The SIAML Pension ETF 40 is designed as an instrument of choice for PFAs, Life Assurance companies, institutional investors, as well as foreign portfolio managers who are desirous of the Nigerian exposure with minimal liquidity and exit risk,” Dayo-Olagunju said.
SIAML would provide investors with a strategic exposure to the equities market, allowing for flexibility, cost effectiveness, diversification of investment, as well as liquidity.
It would act as a benchmark for PFAs to measure performance and report same to Retirement Savings Account (RSA) holders.
Stanbic IBTC Capital CEO,FunsoAkere, commended SIAML for deepening the Nigerian capital market with new and innovative productsthat have specific characteristics to meet the needs of various market categories.
Apart from SIAML as the fund manager, First Registrars and Investor Services will serve as the registrar. Stanbic IBTC Capital is the issuing house.
Stanbic IBTC Stockbrokers is the authorised dealer, FBN Trustees are the trustees, and Standard Chartered Bank is the offer custodian.
Dayo-Olagunju said SIAML will continue to leverage its expertise in asset and wealth management, built over 20 years, as well as the heritage of the Stanbic IBTC Group in corporate and investment banking.
The purpose, she explained, is to provide quality products and services that will deepen the market and enhance transparency, add value, and boost investor confidence.
SIAMLis a wholly-owned subsidiary of Stanbic IBTC Holdings, part of the Standard Bank Group, Africa’s largest bank by assets.
Standard Bank Group has been in operation for 153 years and has direct, on-the-ground representation in 20 African countries.
Stanbic IBTC Holdings provides the full spectrum of financial services with a focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking, and Wealth Management.