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Stanbic IBTC to float more Exchange Traded Funds

By on January 2, 2015

Chief Executive Officer, Stanbic IBTC Asset Management Limited(SIAML), Mr. Olumide  Oyetan, has disclosed that the company will float more Exchange Traded Funds (ETF) in 2015.

He said the company would do so because of its commitment to making the Nigerian capital market less equity-based and provide alternatives for investors.

Oyetan, who disclosed this during the listing of the Stanbic IBTC ETF 30 on the floor of the Nigerian Stock Exchange (NSE), said the ETFs would be launched by the first half of 2015.

A total of 11.44 million units of the ETF were listed on the daily official list of the NSE at N100 per unit. 42,000 units of the ETF valued at N422,000 were traded on the day.

He called on investors to take advantage of Stanbic IBTC ETF 30 to invest in a low cost instrument that will deliver the required market return from the NSE 30 Index.

The Stanbic IBTC ETF 30 is designed to track the performance of the NSE 30 index which comprises the top 30 companies listed on the NSE in terms of market capitalisation and liquidity. The index serves as the flagship benchmark for the stock market as it represents 92 per cent of the NSE’s market capitalisation and the will replicate the price and yield performance of the index.

SIAML had in September offered 10 million units of the Fund at N100 each at par to investors. The offer, which  received approval from the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange, had a minimum subscription of 10,000 units and multiples of 5,000 units thereafter.

Oyetan explained that investors could invest or dispose of units of the fund by buying or selling in the secondary market or through creation and redemption of the units in the primary market, adding that creation and redemption of the fund could only be done by the fund manager when it is in excess of 500,000 units.

He said that units of the fund could be created or redeemed either in kind or cash or combination of both.

Listing some of the underlying benefits, the SIAML boss explained that investing in the fund represents an efficient means of acquiring all of the securities, included in the NSE 30 index, compared to investing in each individual stock.

 

[ThisDay]