Stanbic IBTC Asset Management Limited (SIAML), a wholly owned asset management subsidiary of Stanbic IBTC Holdings Plc, has concluded arrangements to float the Stanbic IBTC ETF 30 (“the Fund”), which opens on Monday, September 15, 2014 and closes on Wednesday, October 15, 2014.
At the signing ceremony held in Lagos yesterday, directors of SIAML and all other professional parties signed the deal to issue 10,000,000 units of the Fund of 100 each at par (the “Offer”). The minimum subscription is 10,000 units and multiples of 5,000 units thereafter.
Approvals for the registration and listing of the units of the fund have been obtained from the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE). Stanbic IBTC Capital Limited is the issuing house to the Offer.
An Exchange Traded Fund (ETF) is an investment vehicle that tracks an index, a basket of assets, or a commodity but trades like regular shares on a stock exchange. The objective of the Fund is to replicate as closely as possible the total return of the NSE 30 Index. The Fund will invest 100 per cent of its assets in the same portfolio of securities that comprise the NSE 30 index in proportion to their weightings in the underlying index.
Speaking at the Signing Ceremony, MD/CEO of SIAML, Mr. Olumide Oyetan said: “The NSE 30 Index comprises of the top 30 companies in terms of market capitalisation. The index serves as the flagship benchmark for the stock market as it represents 92 per cent of The NSE’s market capitalisation”
According to him, “the Fund represents a convenient and efficient way for investors to have access to the top 30 most capitalised and liquid stocks on The NSE, in a cost effective manner. We believe that it will appeal to sophisticated and institutional investors that believe in the growth story of companies listing the NSE and by corollary in the abundant growth opportunities that exist in Nigeria”