Cordros Target-date Mutual Funds Open for Subscription

Cordros Asset Management Limited (CAML), a subsidiary of Cordros Capital Limited (CCL) has opened its two target-date mutual funds for public subscription. A targetdate fund is a fund offered by an investment company that seeks to grow assets over a specified period of time for a targeted goal. Target-date funds are usually named by the year in which the investor plans to begin utilising the assets. The funds are structured to address a capital need at some date in the future, such as retirement.

CAML, which is pioneering the offering of these funds in Nigeria has opened The Cordros Milestone Funds 2023 and 2028 for subscription since Monday June 18 and will close on July 27, 2018.

The company is offering 5,000,000 units of N100 each and minimum amount required to subscribe to the fund is N2,500 (25 units)and investors can make an additional investment of 10 units or more thereafter.

Commenting on the funds, the Group Managing Director of CCL, Wale Agbeyangi said: “The Cordros Milestone Funds 2023 and 2028 are target-date mutual funds, which pursues a long-term investment strategy to manage the asset allocation (mix of asset classes) of the fund, to become more conservative as the target dates (2023 & 2028) approach. It is also laudable that The Cordros Milestone Funds 2023 and 2028 are the first set of target-date mutual funds to be launched in Nigeria. This represents a significant achievement for not just Cordros but the entire capital market. The funds which are initiatives of our asset management subsidiary is a strategic move aimed at providing products which cater to the retail segment of the economy. These are specially designed to provide for individuals and corporations saving towards a ‘target.’”

Similarly, the Acting Chief Executive Officer of CAML, Leye Adekeye said: “We are indeed excited at the prospects that the funds hold. The milestone funds are balanced funds and will have a mix of equities, fixed income and money market instruments. The funds will start out seeking capital appreciation and will become more conservative by seeking capital preservation towards their target dates.