Two new products, the Stanbic IBTC Dollar Fund (SIDF) and SIAML Pension ETF 40 have been officially opened following the granting of relevant approvals by the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) with Stanbic IBTC Asset Management Limited (SIAML) acting as the fund manager to both funds.
The Stanbic IBTC Dollar Fund 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 optimize returns on investments.
On the other hand, the 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 return of The NSE Pension 40 Index. The Index, launched last year by the Nigerian Stock Exchange to drive market optimization, is a tracking mechanism for investors, particularly institutional investors like Pension Fund Administrators (PFAs), that invest in line with guidelines set out by the National Pension Commission. The NSE Pension Index monitors the top 40 most capitalized and liquid companies in the market.
The initial public offerings (IPOs) for units of both Funds opened on Monday, 26 September 2016 and will close on Wednesday, 02 November 2016. The signing of the enabling agreement by the various parties to the transactions took place on Tuesday, September 6, 2016, when the directors of SIAML, the fund manager, and all other professional parties indicated that the signing completed the initial phase of the previously announced plan to float the products.
Under the terms of the deal, the parties agreed to proceed with the solicitation of offers for 5,000,000 units of the Stanbic IBTC Dollar Fund (SIDF) available at $1 each and multiples of 500 units thereafter.
Dayo-Olagunju said the Stanbic IBTC Dollar Fund was launched based on the need to spur the preservation and appreciation of wealth. “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,” she said.
In the offering for the 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. The Fund has an offer size of N1 billion.
The Chief Executive, Stanbic IBTC Asset Management Limited, Mrs. Bunmi Dayo-Olagunju, stated that the primary objective of the SIAML Pension ETF 40 is to provide investors access to the most liquid publicly quoted companies on the Nigerian Stock Exchange that are compliant with the regulatory 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 stated.
Highlighting some of the benefits of the ETF, Dayo-Olagunju said it would provide investors with a strategic exposure to the equities market, allowing for flexibility, cost effectiveness, diversification of investment, as well as liquidity. She added that it would act as a benchmark for PFAs to measure performance and report same to Retirement Savings Account (RSA) holders.
Chief Executive, Stanbic IBTC Capital Limited, Mr. Funso Akere, commended SIAML for its efforts in deepening the Nigerian capital market through the introduction of new and innovative products with specific characteristics to meet the needs of various market categories.
Apart from SIAML as the fund manager, First Registrars and Investor Services Limited will serve as the registrar while Stanbic IBTC Capital is the issuing house. Stanbic IBTC Stockbrokers Limited is the authorized dealer; FBN Trustees Limited will serve as trustees while Standard Chartered Bank is the offer custodian.
Stanbic IBTC Asset Management Limited, Dayo-Olagunju also said, will 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.
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 153 years and has direct, on-the-ground representation in 20 African countries. Stanbic IBTC Holdings PLC provides the full spectrum of financial services with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management.