Afrinvest Asset Management Limited – a subsidiary of Afrinvest (West Africa) Limited – has launched the Afrinvest Dollar Fund, a flexible solution for investors looking to add Dollar-denominated securities to their portfolio.
The initial minimum investment amount is $1,000. The $2million Fund is offering 20,000 units at $100 per unit. Afrinvest Dollar Fund is denominated in Dollars, meaning that all investors who wish to invest in the Fund will have to convert their funds to Dollars.
The objective of the Fund is to achieve income generation and capital appreciation in the short to medium term for investors. The Fund is designed to deliver significantly higher returns than what is obtainable from the average domiciliary account in the local banks. There is free entry and exit for investors subject to the prevailing Fund price.
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The benefits of investing in the fund according to the fund managers include: capital appreciation, competitive returns, diversified portfolio; and regular/steady income stream.
Individuals with future Dollar obligations like school fees, vacation, mortgage, birth tourism, and others can take advantage of Afrinvest
Dollar Fund. The fund managers projected 6percent to 7.5percent return per annum from this investment.
The Afrinvest Dollar Fund is an open-ended mutual fund approved by the Securities and Exchange Commission (SEC) and it provides an opportunity for individual and institutional investors to diversify their portfolio and hedge against currency fluctuations.
It has minimum lock-in period of 180 days. Redemptions before the expiration of the lock-in period will attract 20percent charge on accrued income .
Other parties to the Fund are: Africa Prudential (Fund Registrar), UBA (Custodian), SIAO (Fund Auditor) and Emerging Africa ( Trustees).
Speaking of the objective of the Fund, Ola Belgore, Managing Director, Afrinvest Asset Management Limited said, “The Afrinvest Dollar Fund was created to help investors achieve income generation, capital preservation and portfolio diversification in the short to medium term. It is designed to deliver significantly higher returns than the average domiciliary account and dividend will be paid twice a year.
The Afrinvest Dollar Fund offers investors access to Dollar-denominated securities floated by Nigerian Sovereigns, Supranational entities and Corporates as may be determined by the Fund Manager. The Fund is flexible as there is free entry and exit for investors subject to the prevailing Fund price.
On the impact of the Fund, Belgore said, “Members of the general public who have future Dollar obligations like health tourism, education fees and vacations can use the Fund to save towards their goals. The low initial investment amount means more investors can diversify their portfolios and benefit from our years of experience. The launch of this Fund illustrates quite well the mantra of Afrinvest which is simplifying investments, creating wealth”.
