Cordros Asset Management Limited, the fund manager of ‘Cordros Dollar Fund’ targets to raise about N720million ($2million) from the fund’s ongoing initial offering.
Cordros Asset Management Limited is a wholly owned subsidiary of Cordros Capital Limited, currently licensed by the Securities and Exchange Commission as a fund/portfolio management company.
The fund manager is currently offering to investing public 20,000 units of the mutual fund at $100 each.
The fund is targeted at retail, mass affluent, high net worth individuals (HNIs), Africans in Diaspora, and institutional investors who desire to meet future medium to long term liabilities.
The fund is structured to pay dividends annually, thereby giving investors a medium term investment horizon, liquidity and maximum capital appreciation.
The minimum initial investment for the offer is 5 units of the fund while additional/subsequent investments will be issued in multiples of 5 units and payable in full upon subscription.
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The application list which opened on Monday November 25 closes on December 27, 2019.
The Cordros Dollar Fund is a mutual fund that allows investors to conveniently invest and earn returns in US Dollars. The Fund invests in US Dollar denominated securities like Sovereign Eurobonds, Corporate Eurobonds, Money Market instruments and other quoted Corporate Eurobonds.
The objective is to offer investors competitive returns than is obtainable from an average domiciliary bank account, the fund managers said.
“The fund removes the high entry-level barrier that has discouraged many investors from investing in USD denominated securities.
“The fund helps you diversify your portfolio and also helps you hedge against the risk of local currency devaluation.
“You can invest towards Dollar obligations such as education, trade, healthcare, or periodic foreign travels,” the fund manager stated.
The Fund is meant to manage the asset allocation in Sovereign Eurobonds, Corporate Eurobonds, money market instruments and other quoted corporate Eurobonds.
Returns from Eurobonds will be accumulated as income and distributed periodically as stated in the Trust Deed. The income from investing this fund by way of dividends and cash would be accumulated and reflected in its unit price.
The minimum holding period of an investment in the fund is 180 days (6 months) from the date of subscription. However, an early redemption fee of 1.5percent on the redemptive value of the units to be redeemed applies before the expiration of the minimum investment period. Unit-holders can sell their units in the Fund after the initial 180-day holding period. The Fund, like all Unit Trust Schemes in Nigeria, will be regulated by the SEC.
