Lagos, Oct. 10, 2017 (TNE) Coronation Asset Management, a subsidiary of Coronation Merchant Bank Ltd, on Monday listed three mutual funds worth N2.17 billion on the Nigerian Stock Exchange (NSE), to ensure investment diversification.
The listed schemes are Coronation Money Market Fund; Coronation Fixed Income Fund and Coronation Balanced Fund.
Mutual funds, otherwise known as collective investment schemes (CIS), are joint investment vehicles through which investors can pool funds and invest in chosen basket of securities under a professional management, to optimise returns and reduce risks.
It is usually categorised by the class of assets that forms the primary focus of its investments. Thus, there are equity funds, money market funds, bond funds, real estate funds, ethical funds and balanced funds, among others.
Mr Aigbovbioise Aig-Imoukhuede, Director, Coronation Asset Management, said at the listing that the three mutual funds would offer retail and institutional investors the opportunity to diversify their investment portfolio.
Aig-Imoukhuede said the funds offer all categories of investors three viable options in line with domestic economic and financial market conditions, an opportunity to diversify their investment portfolios.
He said that the funds would guarantee investors’ competitive yields as the business has been put together by a strong investment management team.
He stated that the money market fund would offer investors the opportunity to maximise returns on their savings.
According to him, the fixed income and balanced funds will provide the best opportunity to realise medium to long-term investment goals.
He said that 479 subscribers pooled N1.65 billion through the Coronation Money Market fund; Coronation Fixed Income had 39 subscribers and yielded N315.21 million while Coronation Balanced Fund, with 64 subscribers, achieved N198.62 million.
Earlier, Mr Abubakar Jimoh, the Chairman of Coronation Asset Management and Managing Director, Coronation Merchant Bank Group, had described the funds-listing as “yet another milestone in the history of our company and validation of our expertise in asset management’’.
“By listing the N2.168 billion raised from the three funds on the stock exchange today, we are demonstrating to our investors that we are determined and committed to offer better prospects on their investments across all market conditions,” Jimoh said.
He said that CIS has a very big prospect in the country and urged investors to maximise its opportunities for economic growth and development.
“When you invest collectively, you get benefits you cannot get individually as retail investor. An economy can only grow if most of its citizens participate in the mutual funds market,” Jimoh added.
He said that the company’s target is to grow the fund to N50 billion by the middle of 2018, adding that the company would intensify activities in the fund to meet the proposed target.
He stated that the company has guaranteed transparency in pricing and liquidity with the listing of the mutual funds on the exchange.
Jimoh said performance of the fund would be in line with international best practices.