SFS Capital Nigeria Limited (A member of the Skye Financial Services Group) has recently launched an investment product called SFS Fixed Income Fund. The Investment product is a collective investment scheme registered by the Securities & Exchange Commission and has a top rating of AA (Double A).
According to the Prospectus, the Fund has a target to give all investors a minimum return of 12% p.a. irrespective of the time of entry and exit. Provided funds remain with the fund manager for at least 1 month. Exit from the investment takes maximum of 5 days after a request is made.
The investment product invests exclusively in Fixed Income Products such as Federal Government Bonds and CBN Treasury Bills (with ‘AAA’ rating) and Blue Chip corporate Bonds and commercial papers with a minimum of ‘A’ rating. Other parties to the fund include: Skye Trustees (Trustees), Skye Bank Plc (Receiving Bank), Securities Africa Financial Services (Stockbroker) and Stanbic IBTC Plc (Custodian).
It is the first investment product to utilize the NIBSS standing instruction platform, which enables both local and international investors participate in the investment process through standing instructions from any Nigerian Bank with as low as N10,000.00 by completing a simple form. It is also eligible for institutional investment by Trustees, insurance companies, cooperative societies and Pension Funds due to its ‘AA’ rating and SEC registration.
The Fund Manager: SFS Capital Nigeria Limited is a member of the Skye Financial Services Group. Its Board of Directors include Dr. Layi Fatona [Ph.D., M.Sc. DIC FNAPE]; Dr Yemi Kale [Ph.D., M.Sc.]; Yemi Gbenro [B.Sc, M.A. HCIB]; Dimeji Sonowo [MBA, FCA] and its Managing Director Patrick Ilodianya [MBA, FCA, HCIB, ACT, ACS].
Comment
I rushed to their website hoping to get more details regarding this fund unfortunately nothing was there. The returns look quite attractive even though the yield is comparable with Treasury Bills. However, the fact that you can exit in a month gives it some advantages that TB’s won’t readily provide. Also, you have to consider the risk involved in investing in a fund. One thing that will sure mitigate this risk is if the Fund will be ringed fenced away from the companies core business. That way, when the company goes bust, the fund remains unaffected. SFS Capital was formerly part of Skye Bank till it was sold via a Management Buyout. The company also runs Skye Shelter Fund.
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You need to go to the Fund’s website http://www.sfsfixedincomefund.com, its well detailed.
Nice write-up on the above. Here is the website of the Fund-https://sfsfixedincomefund.com/, it is different from the Company’s website.
The operations of the Fund is ring fenced from that of the Company. The Fund has a Custodian, Stanbic IBTC PLC which is responsible for holding the Fund’s assets, the Fund manager only takes investment decisions. The structure is similar to what you have in the pension industry, where the Pension Fund Administrators take investment decisions, but the Pension Fund Custodians hold the pension assets.
Thanks for the insight