Vetiva to Float 10million Units of Nigerian Sovereign Bond

Vetiva Fund Managers Limited has obtained regulatory approval to launch Nigerian sovereign bonds-based ETF.The Fund Managers launched Nigeria’s first-ever equity based Exchange Traded Fund, ETF, the Nation reports.

The firm is a wholly owned subsidiary of Vetiva Capital Management Limited and is registered with the Securities & Exchange Commission (SEC) to carry out business as fund and portfolio manager.

A regulatory document indicated that the Nigerian Stock Exchange, NSE, has approved the plan by Vetiva Fund Managers to float a public offer for subscription of 10 million units of Vetiva S & P Nigerian Sovereign Bond ETF.

Vetiva already manages Vetiva Griffin 30 Exchange Traded Fun./d (VG 30 ETF), which tracks the NSE 30 Index. The NSE 30 Index tracks the 30 most capitalised stocks at the stock market.

The stocks are selected based on market capitalisation from the most liquid sectors and liquidity is based on the number of times the stock is traded during the preceding two quarters. To be included in the index, the stock must be traded for at least 70 per cent of the number of times the market opened for business.

ETF is a security that tracks the performance of a specified security or other assets including stocks, basket of assets, indices, commodity prices, foreign currency rates, and derivatives among others. There are many types of ETF. Index-based ETF, like index fund, tracks specified market index.

ETFs are essentially index funds that are listed and traded on the Exchange such as shares. Buying and selling ETFs is as simple as buying and selling of shares.

Unlike shares and mutual funds, however, the ETFs will trade continuously all day long and allow investors to lock in a price for the underlying stocks immediately, rather than being bought and sold based on end-of-day prices.