Ecobank subsidiary launches mutual funds
EDC Fund Management, the asset management arm of Ecobank Nigeria, has announced the launch of two mutual funds: the EDC Nigeria Money Market Fund and the EDC Nigeria Fixed Income Fund.
The mutual funds give customers and other interested Nigerians the opportunity to diversify their investment portfolio with as little as N5,000 for the Money Market Fund, and N50,000 for the Fixed Income Fund.
The Managing Director, EDC Fund Management, Mrs. Ibukun Oyedeji, was quoted in a statement by the lender as saying that the Money Market Fund provided the benefits of pooled investment, allowing investors to invest in a diverse and high quality portfolio.
Like other mutual funds, each investor in a money market fund is considered a shareholder of the investment pool.
She stated that the money market funds were being managed within rigid and transparent guidelines to seek the preservation of capital, liquidity and competitive yields.
The money market fund has two classes. The Class A caters for the retail investor, while the Class B is targeted at corporate investors as a liquidity management solution.
The EDC Nigeria (Corporate) Money Market Fund will assist large organisations to efficiently manage their day-to-day liquidity, while they focus on more strategic initiatives for their business. The unit price for the Class B is N1m.
Oyedeji described the EDC Nigeria Fixed Income Fund as a collective investment vehicle, which invests primarily in government and corporate bonds.
The statement read in part, 'Although both funds are open-ended funds, the initial public offering period closes on November 30, 2016. Once, the approval of the IPO is completed, the funds have no closing date.'