EDC Investments Limited, the Ghana Asset Management subsidiary of Ecobank Group has unveiled a new collective investment scheme-The EDC Money Market Fund (MMF) in Accra.
The Initial Public Offering (IPO) of the fund runs from 27th June to 18th July 2016 and has the objective of maximising income in line with prevailing Ghanaian money market rates. It also aims at preserving capital and to maintain a high degree of liquidity.
A money market fund is a collective investment vehicle which invests in short-term (less than 12 months) instruments including Treasury Bills.
Launching the fund, Kisseih Antonio, the Managing Director of EDC Investments Limited outlined the benefits the Money market fund would offer to businesses saying: “The EDC Money Market Fund we are launching today aims to provide the highest level of current income while maintaining liquidity and preserving capital”.
He continued: “The fund will invest in short term debt instruments and will provide the benefits of pooled investments and allowing investors to invest in a diverse and high quality portfolio. The fund will be managed within rigid and transparent guidelines to seek preservation of capital, liquidity and competitive yields”.
According to him, the fund is open to individuals, societies, clubs, churches, corporates and institutions.
The minimum amount retail investors (individuals) can invest is GHC100 and GHC50,000 for institutional investors (like SSNIT pension fund). Units in the fund are being offered for GHC1 during the IPO period after which investors will still have the opportunity to invest in the fund at the existing Net Asset Value (NAV) per unit on the day of purchase, Mr Antonio stated.
Explaining how the fund works, Paul Mante, Head of Business Development of EDC Investments Ltd, noted that a unique feature of the fund is the distribution of its net income on a quarterly basis to unit holders who would then have the option to elect to be paid immediately or reinvest their distributions in new units pegged at the relevant NAV.
“This is the first collective investment scheme in Ghana which provides investors with this option, out of about 43 mutual funds and unit trusts in Ghana”, he stated.
An additional advantage with this money market fund is that it is open-ended, meaning you can join the fund at any time and exit whenever you wish, providing flexibility for the investor. An investor only needs to notify EDC within 24-48 hours and the redemption will be finalised.
An investor can subscribe to the fund from any Ecobank branch and from the office of the EDC Investments Limited at Ridge.
The EDC Money Money Market Fund is the most recent collective investment scheme product that Ecobank’s Asset Management has launched in Africa with assets under management in these schemes amounting to US$310million. Ecobank Asset Management fund scheme has operations in four different countries.
By Anthony Sedzro, GB&F
