Cordros Asset Management Limited Unveils Fixed Income Fund

In order to depeen financial inclusion and democratise investment, Cordros Asset Management Limited, one of the leading Financial Services group in Nigeria, has unveiled Cordros Fixed Income Fund.

The Cordros Fixed Income Fund is an open-ended fund authorised and registered in Nigeria as a Unit Trust Scheme under Section 160 of Investment and Securities Act.

Speaking during the unveiling of Cordros Fixed Income Fund recently in Lagos, the Managing Director of Cordros Asset Management Limited, Adegbolahan Aina, said: “The fund is governed by trust deed with STL Trustees Limited as Trustees to the Fund. 5,000,000 units of each fund are being offered for subscription at the lunch of N100 per unit.”

According to him, the Cordros Fixed Income Fund will be managed by the Cordros Asset Management Limited, a wholly owned subsidiary of Cordros Capital Limited, currently licensed by the Securities and Exchange Commission (SEC) as a fund/portfolio management company.

He further disclosed that the issue price is N100 per unit, stressing that the minimum initial investment for the offer is 25 units of the fund, while additional/subsequent investment will be issued in multiple of 10 units and payable in full upon subscription.

“The minimum holding period for an investment in the fund is 90 calendar days from the allotment date. This period commences from the allotment date for subscribers under the IPO of the fund. However, an early redemption fee of 1.5% on the redemptive value of the units to be redeemed before the expiration of the minimum investment period,” he added.

Speaking on how interested investors can subscribe to the fund, the managing director said: “Investors can subscribe to units of the funds after the initial offering period from the fund manager or any of its designated agents/representatives or through any medium that may be approved and provided by the fund manager from time to time.”

He noted that unit holders can visit the fund manager’s website to monitor end-of-day market prices of the fund, adding that units holders can track their investment from Cordros Portfolio Live account which would be created for every investor.

“The fund is targeted at retail, high net worth individuals, Africans Diaspora and institutional investors who desire future medium to long term liabilities. The fund is structured to pay dividends annually and is suitable for investors that have a medium to long term investment horizon,” he said.

Earlier in his welcome address, the Group Managing Director, Wale Agbeyangi, who warmly welcomed
everyone to the event, said: “The Cordros Fixed Income Fund is designed to generate attractive income at a moderate risk level.”

According to him, the Fund invests in medium tenured debt instruments of the Federal Government of Nigeria, states and highly rated corporate institutions, adding that the Fixed Income Fund is the fourth mutual fund type managed by Cordros Asset Management.

“The company previously launched the Cordros Money Market Fund, Cordros Milestone Fund and Cordros Dollar Fund, which have all been offering good yields. Therefore, the addition of the Fixed Income Fund opens new opportunities to all investors who want to enjoy the benefits of more diversification in managing their portfolio risk,” he added.

Agbeyangi further disclosed that the market needs more varieties of investment vehicles, not only for the high networth but also for the retail investors who are able to take positions in mutual funds to earn passive income.