Don't Miss


Home   >   Business   >   Industries   >   Banking   >   Stanbic IBTC’s ETF will increase market participation – Oyetan

Stanbic IBTC’s ETF will increase market participation – Oyetan

By on September 27, 2014

The Chief Executive Officer, Stanbic IBTC Asset Management Limited, Olumide Oyetan, has said the introduction of new Exchange Traded Funds such as the Stanbic IBTC ETF 30 will help attract more investors to the capital market.

Oyetan was quoted in a statement from the asset manager on Thursday as saying at an investment forum in Lagos that that a strong financial sector as well as vibrant capital market was pivotal in enhancing economic efficiency, attracting investment and driving faster growth.

He explained that the Stanbic IBTC ETF 30 initial public offering, which opened on September 15, would help to deepen and speed up the growth of the capital market.

The offer, which closes on October 15, 2014, opened with 10,000,000 units of the Fund available at N100 each at par. It offers a minimum subscription of 10,000 units and multiples of 5,000 units thereafter.

The statement quoted him as saying a major objective of inaugurating the fund was to increase the participation of domestic investors in the capital market, which would boost the capital formation process, while also generating significant returns for investors.

Oyetan said, “The opening of the Stanbic IBTC ETF 30 is a direct response to increased investor demand for passive investment strategies that will deliver the market return for the index being tracked, which in this case is the NSE 30 of the Nigerian Stock Exchange.

“The Stanbic IBTC ETF 30 provides a transparent and flexible structure that allows investors efficiently gain exposure to the securities of these companies that have over time out-performed the broad equity market.”

According to Oyetan, the Fund will invest its entire assets in the portfolio of securities that comprise the NSE 30 Index in proportion to their weightings in the underlying index.

On the importance of the fund, he said, “The fund represents a convenient and efficient way for investors to have access to the top 30 most capitalised and liquid stocks on the NSE, in a cost-effective manner.

“We believe that it will appeal to sophisticated and institutional investors that believe in the growth story of companies listed on the NSE and by extension, in the abundant growth opportunities that exist in Nigeria.”

 

[Punch]