EDC Investments launches Money Market Fund
EDC Investments Limited, the investment and fund management subsidiary of the Ecobank Group, has launched its third collective instrument scheme onto the Ghanaian market.
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Known as the EDC Money Market Fund, it is an open-ended investment option available for subscription by both individuals and institutional investors. Units in the fund are being offered for GH¢1 during the Initial Public Offering (IPO) period which runs from June 27 to July 18, 2016.
At the launch in Accra, the Managing Director of EDC Investments Limited, Mr Kisseih Antonio, said the EDC Money Market Fund was a short-term investment option for individuals and institutions that had short-term investment needs.
The primary objective of the fund, he said, was to maximise income in line with prevailing Ghanaian money market rates, while aiming to preserve capital and to maintain a high degree of liquidity.
The fund, he also explained, would invest in a wide range of diversified portfolio of short-term, high quality money market securities.
Dynamics of the fund
A unique feature of the fund, he said, was the distribution of net income on investments to unit holders who would then have the option to elect to be paid immediately or reinvest their distribution in new units.
The fund, according to him, would adhere to rigid credit standards to ensure that the portfolio had a level of risk where there would be no capital losses.
“The fund offers flexibility to investors as there is no requirement to commit funds for any period and there are no penalties for redemption. The fund will be managed with very high levels of liquidity in order to meet investors’ 24-hour redemption requirement,” he said.
He also explained that there would be no fees to subscribe or redeem from the fund, thus allowing investors the freedom to move their assets in and out of the fund as often as they wanted.
The EDC Money Market Fund, he added, would be managed by professionals to ensure that investors got value for money on their investments.
“Many investors do not have time or expertise to manage their investments on a daily basis, to efficiently reinvest interest income or to investigate the hundreds of securities available in the financial markets. The fund is managed by professionals who are experienced in investing money and who have the education, skills and resources to research diverse investment opportunities,” he said.
More funds
He also hinted that EDC would launch an equity fund, Nigeria Fixed Income Fund, and a Nigeria Money Market next month.
“In the coming months, we will be launching a number of Pan-African funds as well. It is obvious that as an institution, we have positioned ourselves to offer a diverse set of investment options spanning different asset classes, disciplines and styles to address client needs. Our goal is to make financial expertise broadly accessible and effective in helping individuals and corporates in meeting their financial goals,” he said.