Stanbic IBTC Asset Management Limited, SIAML, a subsidiary of Stanbic IBTC Holdings Plc has finalised arrangements for an initial public offering (IPO) to raise N1 billion for a Pension Exchange Traded Fund (ETF) 40 and $5 million Dollar Fund.
The company in a press statement released on Tuesday, September 27, said, the two new products, the Stanbic IBTC Dollar Fund (SIDF) and SIAML Pension ETF 40 have been officially opened following the granting of relevant approvals by the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE).
The Stanbic IBTC Dollar Fund provides retail and institutional investors the opportunity to seek exposure in attractive dollar-denominated securities to serve as a devaluation hedge as well as to optimise returns on investments.
On the other hand, the SIAML Pension ETF 40 is an Exchange Traded Fund (ETF) that will mirror the Pension 40 Index. The Index, launched last year by the NSE to drive market optimisation, is a tracking mechanism for investors, particularly institutional investors like Pension Fund Administrators (PFAs), that invest in line with guidelines set out by the National Pension Commission. The NSE Pension Index monitors the top 40 most capitalised and liquid companies in the market.
Stanbic IBTC Asset will issue five million units of the Stanbic IBTC Dollar Fund (SIDF) at a price of $1 per unit, while 10 million units of Pension ETF 40 at N100 per unit with an offer size of N1 billion. With both offers opened on September 26, 2016 and to close on November 2, 2016.
The chief executive, Stanbic IBTC Asset Management Limited (SIAML), Bunmi Dayo-Olagunju said the Stanbic IBTC Dollar Fund was launched based on the need to spur the preservation and appreciation of wealth.
