FSDH As­set Man­age­ment re­duces ini­tial amount for Coral fund Urges unit hold­ers to di­ver­sify port­fo­lio

The Guardian (Nigeria) - - BUSINESS - By He­len Oji

FSDH As­set Man­age­ment Lim­ited has an­nounced a re­duc­tion on the min­i­mum ini­tial amount re­quired to in­vest in its Coral Growth Fund or In­come Fund from N50,000.00 to N5,000.00 to make it more re­tail in ap­peal.

The two coral funds were launched by the firm in 2005 and 2006. Growth Fund seeks to en­able in­vestors achieve cap­i­tal growth over the long-term while the In­come Fund was es­tab­lished to pro­vide in­vestors with an in­vest­ment out­let that pro­vides sta­ble but com­pet­i­tive re­turns in ex­cess of in­fla­tion.

Speak­ing on why the min­i­mum amount was re­duced to N5,000.00, at the EGM of the FSDH Coral Funds held in La­gos, the Man­ag­ing Di­rec­tor of FSDH As­set Man­age­ment Lim­ited, Mrs. Olumay­owa Ogun­wemimo, ex­plained that the de­ci­sion would to make the Funds more re­tail was driven by a num- ber of fac­tors and one of which is the per­sis­tent de­mand from ex­ist­ing in­vestors and prospec­tive in­vestors.

“With the re­duc­tion of the min­i­mum amount re­quired for ini­tial in­vest­ment to N5,000.00, we are of the opin­ion that ev­ery­one can now in­vest in any of the Coral Funds. In­vest­ments can be made for chil­dren, gifts to love ones, for sav­ings among other.”.

She stressed the need for unit hold­ers to di­ver­sify their in­vest­ment across dif­fer­ent seg­ment of the mar­ket, not­ing that all mar­kets does not go in the same di­rec­tion at the same time.

“Unit hold­ers should di­ver­sify their in­vest­ment across dif­fer­ent seg­ment of the mar­ket, the eq­ui­ties and fixed in­come be­cause all mar­kets does not go in the same di­rec­tion at the same tme so if you have a di­ver­si­fied port­fo­lio, it will help your en­tire port­fo­lio. When eq­ui­ties mar­ket is not do­ing so well, you have a buffer in the fixed in­come in­vest­ment and vise versa.

She as­sured share­hold­ers of bet­ter re­turns in the next fi­nan­cial year as the man­age­ment has hedged against unforeseen volatil­i­ties that could im­pact on the move­ment of the fund.

“In 2018’ we had seen a case where yield in fixed in­come se­cu­ri­ties have been com­ing down, we had an­tic­i­pated that yields will come down at some points par­tic­u­larly as we have seen the trend of in­fla­tion rate and the plans of the CBN and the Debt Man­age­ment Of­fice on what their fund­ing struc­ture will be so we have taken a long term view on fixed in­come se­cu­ri­ties and what we had done was to in­vest more on longer dated in­vest­ment.”

A unit hold­ers, Michael Ogun­deji de­scribed the fund as a low risk and re­li­able in­vest­ment, not­ing the firm have been com­pe­tent in the way they di­ver­sify the port­fo­lio over the years. He urged the man­age­ment to con­tinue in their re­search and open more fonts, in or­der to in­crease their in­vest­ment re­turns.

Deputy Gover­nor, Cor­po­rate Ser­vices, Cen­tral Bank of Nige­ria, Ed­ward Lame­tek Adamu (right), pre­sent­ing the “Life Time Achieve­ment Award” to Pro­fes­sor-emer­i­tus Grace Alele-williams, at the Van­guard News­pa­pers award, in La­gos.

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