The on-going Cordros Money Market Fund (CMMF) initial public offer (IPO) will close tomorrow (Wednesday), the fund manager, Cordros Asset Management Limited said monday.
The CMMF, which is an open ended mutual fund, is offering N1 billion (10million units at N100 per unit) and with a minimum subscription amount of N10,000.
According to the Cordros Asset Management, the fund, which opened on August 1, will close tomorrow. The fund’s investment objective is to provide capital preservation and regular income to unit holders by investing in high-quality money market instruments recognised by the Securities & Exchange Commission (SEC).
Speaking during a recent investment forum, the Group Managing Director of Cordros Capital, Wale Agbeyangi, explained the relevance of professional portfolio managers in creating and protecting wealth for investors, saying that mutual funds are set up for investors who do not understand the complexities of the financial market but desire to invest in various asset classes. He highlighted the key benefits of investing in the CMMF particularly in this current economic climate.
Also speaking, the acting Managing Director of Cordros Asset Management, Olafisayo Ogunbiyi-Badaru, stressed the attractiveness and safety of mutual funds. According to him, mutual funds have a level of safety due to structure and regulation that have been put in place by the regulators. She said the industry is regulated by the Securities & Exchange Commission (SEC) and encouraged investors to take advantage of the current high interest rate environment in the country by investing in the CMMF.
“High networth individuals with available short term cash balances can also take advantage of the fund to earn higher rates of return. Institutional clients who desire liquidity and easy accessibility to their funds with competiti returns can also take advantage,” she said.
Meanwhile, trading resumed at the stock market on a bearish note yesterday as the Nigerian Stock Exchange (NSE) All-Share Index declined by 0.18 per cent to close at 27,707.12.Market capitalisation shed N17 billion to close at N9.5 trillion.
The bearish followed depreciation in the shares of Dangote Cement Plc,Nigerian Breweries Plc and PZ Cussons Nigeria Plc.