STANBIC IBTC Asset Management Limited, a subsidiary of Stanbic IBTC Holdings Plc, has listed on the FMDQ OTC Securities Exchange three of the mutual funds under its management.
These are Stanbic IBTC Money Market Fund (SIMM), Stanbic IBTC Bond Fund (SIBOND) and Stanbic IBTC Dollar Fund (SIDF), listed on Monday was sponsored by Stanbic IBTC Capital Limited.
Stanbic IBTC Money Market Fund, with close to N190 billion in net asset value as at 09 February 2018, is currently the largest open-ended mutual fund in Nigeria. Its’ 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 recognized by the Securities & Exchange Commission. SIMM is suitable for investors with low-risk appetite whose objective is capital preservation while generating a steady stream of income.
Stanbic IBTC Bond Fund similarly was conceptualised 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 its assets while safeguarding capital by investing in a diversified portfolio of high-quality bonds issued by government, supranational and corporate bodies. Minimum subscription to both SIMM and SIBOND is N5,000. The Stanbic IBTC Dollar Fund which was launched based on market need and investor demand provides retail and institutional investors with the opportunity to seek exposure in attractive dollar-denominated securities to serve as a devaluation hedge as well as to optimize returns on investments. SIDF offers investors outlets for investing an initial minimum of $1,000.00 and the subsequent minimum of $500.00.
Speaking at the event, Chief Executive, Stanbic IBTC Asset Management Limited (SIAML), 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. The attractiveness of mutual funds or collective schemes, she said, derives from the numerous benefits it offers over other investment vehicles, such as flexibility, liquidity, steady returns, professional management, and risk reduction, among others.
She said the firm would continue to leverage its expertise in asset and wealth management, built over the past 20 years, as well as the Stanbic IBTC Group’s rich heritage in corporate and investment banking to provide quality products and services that will not only deepen the market but enhance transparency, add value and lead to investor confidence.
MD/CEO of 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.
Executive Director and Head, Debt Capital Market, Stanbic IBTC Capital Limited, Mr Kobby Bentsi-Enchill noted that the company has sponsored many listings on FMDQ’s platform. He said Stanbic IBTC was excited with the remarkable growth of the fixed income market as this is vital to the creation of liquidity and pledged that the organization will continue to work with regulators and operators to establish a world-class capital market in Nigeria.
“As a Registered Member, listings, of FMDQ, Stanbic IBTC Capital Limited is pleased to have supported the listing of the Stanbic IBTC Bond Fund, Stanbic IBTC Dollar Fund and of course, the Stanbic IBTC Money Market Fund, which is the largest open-ended mutual fund in Nigeria,” said Bentsi-Enchill.
Stanbic IBTC Asset Management Limited is a wholly-owned subsidiary of Stanbic IBTC Holdings PLC, which is part of the Standard Bank Group, Africa’s largest bank by assets. Standard Bank Group has been in operation for 154 years and has direct, on-the-ground representation in 20 African countries.