Wednesday, 21 November 2007

FBN Capital Ltd Launch Heritage Fund

FBN Capital Limited, the wholly owned 'investment banking' subsidiary of First Bank of Nigeria Plc, (Nigeria's largest bank by assets) yesterday launched on behalf of the First Bank Group, the FBN Heritage Fund, an open-ended mutual fund investment product. The fund would be the largest fund from initial launch in the history of the country. It is balanced in its asset allocation structure, and has the objective of providing optimum risk-adjusted returns to prospective investors. The economic reforms, deepening of the Nigerian Capital market and increased market sophistication have created an impetus for financial products diversification. An extension to this, is the increased, and growing demand for professional management of portfolios and expertise in the delivery of services to ever discerning investors.

The Fund is the first among a series of Funds to be launched by the Group to satisfy demand for new and varied products and services by the investing public. ‘’Our long-range plan is to roll out specialist Funds and sector Funds to sustain the interest of every class of investor’’ Managing Director of FBN Capital Bayo Adeleke said at the formal launch of the investment fund held at The City Centre, Ozumba Mbadiwe Street, Victoria Island, Lagos. The event was attended by the Oba of Lagos, Rilwanu Akiolu 1, financial analysts, chief executives of blue chip firms including Bismark Rewane, Ayo Teriba and Akin Adesokan, the Managing Director of Dangote Cement. First Bank Group says it has remained focused on its strategic vision to be a 'world- class financial supermarket' with the mission to deliver a full range of first class banking and financial products. ‘’With the launch of FBN Heritage Fund, our retail and wholesale customers and indeed the investing public at large would enjoy access to an investment product across our extensive network’’ Adeleke said.

FBN Heritage Fund is an open-ended mutual fund with initial tranche of 50,000,000 units being offered at par, at N100 per unit. The fund is balanced in its asset allocation structure and will invest proceeds between the ranges of 50-65% in stocks; 15-25% in quality fixed income instruments (bonds); 5-10% in money market instruments and maximum of 5% in real estate investments. The expense ratio is therefore projected to be among the least. The primary objective of the fund is to return through a combination of growth and income. Accordingly, the fund aims to achieve long term capital appreciation of its assets through investment in a portfolio mix of high quality equity securities quoted on the stock exchange and in other investments approved by the commission. The fund seeks to achieve its stated objective of long term capital appreciation of its assets by investing he the following instruments including high quality quoted stocks on the Nigerian Stock Exchange, fixed income instruments, Money Market Instruments, real estate investment and securities and other securities specified under the trustees act as well as other securities approved by the fund manage in conjunction with the trustee and he commission. Asset Classes are as follows: Equity 50-65%, Fixed income 15-25%, Money market 5- 10%, Real estate 0-5%.

FBN Capital boss, Adeleke says an investment in the fund will provide the opportunity to spread investment risks over carefully selected securities. ‘’It will guarantees good returns from holding securities for numerous issuers, which may not otherwise be available in significant quantities, to individual investors’’. Adeleke went on further: ‘’The fund is primarily aimed at investors who have a long term investment perspective and it also welcomes participation from other foreign and non resident investors and the fund manager will assist non resident investors to facilitate the remittance of the net proceeds arising from a foreign currency investment in the fund a the point of divestment’’.