Cordros launches Halal fixed income fund targeting ethical investors

As Nigerians continue to look for investment opportunities and investable assets to hedge their fund against inflation, Cordros Asset Management Limited, has launched the Cordros Halal Fixed Income Fund of five million units at N100 per unit, targeting ethical investors in diversifying their investment portfolios.

“The launch of the Cordros Halal Fixed Income Fund opens new opportunities to ethically-minded investors who want to diversify their investment portfolios through investments in Shariah-compliant fixed income securities and investment products while taking advantage of stable, low risk and competitive returns,” Emeka Ndu, chairman, Cordros Asset Management Limited, at the launch of the fund in Lagos.

According to Ndu, the fund seeks to provide investors with low-risk investment with stable and competitive returns in short, medium, and long-term Shariah-compliant fixed income securities and investment products while ensuring capital preservation.

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He posits that the fixed income market needs more varieties of investment vehicles, not only for the high net worth or retail investors but also for investors who seek more investment opportunities in ethical instruments.

“This need explains our delight in introducing the Cordros Halal Fixed Income Fund to our teeming clients and the investing public,” said Ndu, stating that the Cordros Halal Fixed Income Fund is the fifth mutual fund type managed by Cordros Asset Management Limited.

Gbolahan Aina, the managing director, Cordros Asset Management, said that the fund will invest its total assets in sovereign and sub-sovereign Sukuk, corporate Sukuk, Shariah compliant fixed term investments, and Shariah income contracts among others.

He posits that unitholders can sell or redeem all or part of their investments when there is a price appreciation. Additionally, the fund manager intends to distribute income (less expense) as dividends to unitholders on an annual basis. “The unit holders shall have the option to elect to be paid dividends or to reinvest their dividends in new units at the offer price”.