Oscar Onyema, CEO of the Nigerian Stock Exchange (NSE) has disclosed that four mutual funds have been immediately listed on its newly launched platform at the Exchange by the board and management of First City Asset Management limited and Cordros Asset Management limited who listed two funds each.
The funds listed on Friday, February 22, 2019 were FCAM Legacy Money Market Fund and Legacy Debt fund as well as Cordros Milestone Fund 2023 and Milestone fund 2028 respectively.
“Today’s listing is not just about the platform but a milestone in a continuous process to be best in class in distributing your various funds to investors,” said Onyema.
Onyema stated that there is an indication of growing interest in mutual funds, which has in recent years recorded significant increase in Nigeria. He added that there is still room for growth as the ratio of these funds to the Nigerian Gross Domestic Product is estimated at less than 1 percent.As at February 18th 2019, the numbers of registered mutual funds with the Securities and Exchange Commission (SEC) stood at 76 with Net Asset Value (NAV) in excess of N600 billion.
“Out of these registered funds, 47 are listed on the NSE memorandum listing platform. With the launch of this new distribution platform, we expect to receive more applications for listing of mutual funds,” he said.
Mutual fund is a pool of funds brought together by a professional fund manager from several investors to invest in selected underlying securities. The underlying securities can be one or a combination of stocks, fixed income securities, real estate and commodities.
A mutual fund portfolio is structured and maintained to match different investment objectives. The type of mutual fund an individual invests in depends on their financial objectives and appetite for risk.