BusinessDay... the voice of business: Zenith launches mutual funds, to raise N8bn

Zenith launches mutual funds, to raise N8bn
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Anonymous on 01 May, 2008 02:00:00
 
On offer for subscription are 500,000,000 units of the Zenith Equity Fund,
200,000,000 units of the Zenith Income Fund and 100,000,000 units of the Zenith
Ethical Fund at N10 per unit. The funds are to be managed by Zenith Capital, the
investment banking arm of Zenith Bank Plc.
The funds have distinct features aimed at investors with varying risk
preferences and investment considerations and are open ended, meaning there is
no limit to the amount that can be invested either during or after the offer.
The Zenith Equity Fund is designed to provide long term capital appreciation
from diversified portfolio in quoted equities and debt instruments and is
targeted at investors who desire aggressive growth and are not averse to high
risk.
The Zenith Income Fund, designed for investors seeking average return in secure
investments, will invest 70 per cent of its fund in assets such as government
securities, corporate bonds, and commercial bills while 30 per cent will be
invested in equities.
On its part, the Zenith Ethical Fund is designed for those who seek long term
capital growth through investment in equities but who have strong ethical
considerations.
When it opens, investors will be free to subscribe to units of the fund through
Zenith Bank Plc or any other approved agent by the fund manager from time to
time after the IPO. Minimum investible amount in the fund during and after the
offer is N100, 000.00
The Zenith Funds like all other open-ended funds, are very liquid as investors
have direct recourse to the Fund Manager in order to realize the prevailing
value of their investments. The funds, which will enjoy economies of scale, will
be diversified across several sectors and securities therefore ensuring reduced
volatility in each portfolio.
All three funds serve as useful investing tools that can be used to create a
regular savings plan.
In order to monitor their investments in the Zenith Funds, investors will have
online access to their statements of accounts through the manager’s website.
Investors can also purchase and redeem units in any of the funds at any of
Zenith Bank’s branches nationwide.
Investors in any of the Zenith Funds will benefit immensely from the combined
experience of over 120 years of the core team in investment management, which
achieved a return in excess of 89 per cent in 2007 on its privately managed
equities-based portfolio.
Zenith Bank Plc, the fund manager, is the strongest financial group in West
Africa in terms of quality of assets, safety of funds and brand and has won
numerous awards including ‘Quoted company of the Year, 2007’ by the Nigerian
Stock Exchange and ‘Africa’s Bank of the Year’ by Africa Investor
Magazine.