Kedari Capital Limited, an investment banking firm with outlets across West Africa, has floated an Initial Public Offering (IPO) of 10 million units of N100 each for investors seeking to optimise their returns at minimal risk.
The mutual fund, known as Kedari Investment Fund, is an open-ended unit trust scheme that invests predominantly in fixed income securities as well as in equity securities.
The fund provides a relatively cheap opportunity for investors to build wealth at a considerably lower risk than direct stock investments and higher potential returns, than fixed income instruments.
Speaking with BusinessDay immediately after the launch of the fund in Lagos, yesterday, Muyiwa Oshin, head, corporate finance and advisory, Kedari Capital Limited, said, “the fund is rated by Augusto & Co., a Securities and Exchange (SEC) registered reputable agency.
“This means they have gone through all the feature of the fund and they have made sure that it is well managed and secured. We have also assembled a team of other professionals as well – we have trustees, custodians, issuing houses, and stock brokers who have been brought together to make sure that when we take on people’s money who invested in the fund, those monies are well managed so that they can get returns.”
Continuing, he said “we are looking at returns that will typically outperform the market, right now inflation is about 16. Percent, we want to make sure we are able to manage the fund in such a way that we are able to march inflation or a little bit above it. So, we put it in a variety of instrument that made sure this is well managed to bit inflation and at the end of the day we have good returns.”
There is economic downtown but the best time to invest is when the asset prices are low, he said, saying, “It is a good time for people who have savings, it is a good time for institutional investors to lock in their funds at a time the market is soft so that when the market picks up they are would take advantage of it.”
As an open-ended fund, the fund will be open to investors for subscription through the fund manager after the full subscription of the initial 10,000,000 units issued. As a result the fund manager will issue additional units when required, with the consent of the trustee, subject to the registration and approval of the units to be offered by the commission.
