Investors who wish to have liquidity in the short term on their investments will have an opportunity to do so as Ecobank Development Corporation (EDC) launches its Initial Public Offer (IPO) in the money market.
The primary objective of the fund is to maximize income in line with prevailing Ghanaian money market rates, while aiming to preserve capital and maintain a high level of liquidity.
Speaking to Citi Business News after the launch of the IPO, the Managing Director of Ecobank Development Corporation, Ghana, Mr. Kisseih Antonio explained that the money market remains the most viable place to invest in the short term compared to the equity market, and fixed income market, since it provides flexible terms for liquidity returns.
“If you want an opportunity to invest in a market for a short term where your liquidity can be returned to you in a short notice without any cost then the money market is the best” he said.
He stated that the fund will invest broadly in diversified portfolio of short term, high quality money market securities.
“The fund is available for subscription by both individual investors for a minimum initial amount of GHS100 and for institutional subscribers for GHS50,000,” he added.
The Initial Public Offering (IPO) of the fund runs from 27th June to 18th July 2016.
Mr. Antonio stated that units in the fund are being offered for GHS1 during the IPO period after which investors will still have the opportunity to invest in the fund at the existing Net Asset Value per unit on the day of purchase.
He pointed out that a unique feature of the fund is the distribution of its net income on a quarterly basis to unit holders.
According to him, the holders would then have the option of being paid immediately or to reinvest the distributions in new units, pegged at the relevant daily Net Asset Value.
He disclosed that this is the first collective investment scheme in Ghana which provides investors with such an option.
“As an institution, we are strategically positioning ourselves to roll out several country specific and pan-African funds spanning different assets classes, disciplines and styles to address clients needs,” he assured.
He stressed that the goal of the EDC is to make financial expertise broadly accessible and effective in helping individuals and corporate to meet their financial goals.
The EDC Money Market fund is the most recent collective investment scheme product that Ecobank’s Asset Management business has launched in Africa with assets under management in these schemes amounting to US$310 million.