NSE Launches New Board for REITS, Closed-end Funds

• NSE Launches New Board for REITS, Closed-end Funds

The Nigerian Stock Exchange (NSE) will today move Real Estate Investment Trusts (REITs) and closed-end funds listed on it to a new board in a final stage of an extensive restructuring aimed at boosting the asset classes.

In a circular at the weekend, the NSE stated that the migration of these asset classes was aimed at promoting visibility and liquidity of listed REITs and closed-end funds (CEFs).

The Exchange reiterated its commitment to partnering with issuers, investors and other capital market stakeholders, in providing a multi-asset platform that caters to different classes of investors.

The restructuring that started in April 2017 included incorporation of specific rules relating to REITs and closed-end funds into the Rulebook of the Exchange as well as submission of quarterly financials and audited full year financial statements to the Exchange through the NSE X-Issuer Portal by REITs and closed-end funds.

The Exchange had noted that the financials being submitted by REITS and closed-end funds will be accessible to the public through the NSE’s website and other NSE platforms.

Besides, REITs and closed-end funds listed on the Exchange would be required to submit relevant key performance metrics weekly to the NSE while the Fund Managers will also be required to post the information on their website.

“The changes will also make it easier for existing and potential investors to access information required to make investment decisions thereby contributing to the growth of these products in our market,” the Exchange stated.

The Exchange urged fund managers to the REITs and closed-end funds to embark on consistent marketing campaign on the changes and provide detailed information to sensitise and educate investors about this asset class, as a viable alternative investment vehicle.