BGL Asset Management floats N2 billion, N500 million issues




BGL Asset Management Limited (AML) has concluded plans to sale N2 billion units of shares and N500 million units of both BGL Sapphire Fund and BGL Nubian Fund at the price of N1.00 per share.The floating of the offers, which is to commence on October 4, 2010, was preceded by a completion board meeting, held in Lagos, yesterday, where the bank and all the financial advisers to the offers signed the necessary documents. The Chairman of the Fund, Mr. Albert Okumagba, said the date of closure of the offers is slated for November 10, 2010, adding that both offers are payable in full on application.


According to him, the units of the BGL Sapphire Fund are 10,000, with multiples of 1,000 units thereafter.He explained that the fund achieves competitive returns for investors who are interested in earning attractive returns from the medium to long-term basis by investing in a diversified portfolio of fixed-income securities, as the principal sum invested in the fund is guaranteed against any diminution in value provided the units are held for a minimum of three months.


The units in the fund, according to him, may be purchased at the subscription price during the offer period while additional unit in the fund would be created subsequently and purchased on demand by subscribers on a continuous basis.He added that the fund would be open-ended so that investors will be at liberty to subscribe to its units through the fund manager or any other agent approved by the fund manager after the initial public offer, while the fund manager will in turn, issue additional units of the fund to subscribers on demand, after the initial tranches of two billion units has been fully subscribed.


For the Nubian Fund, Okumagba said that its unit of sale is 5,000 units with multiples of 500 units.Specifically, he said the fund aims at generating good returns for investors who want their capital to appreciate from medium to long-term by investing in equities, money market and fixed-income instruments such as bonds, treasury bills and treasury certificates in Nigeria.He explained that a minimum of 70 per cent of the asset of the fund would be invested in equities while not more than 30 per cent would be into fixed income and money market instruments.


He noted that the fund is appropriate for investors who wish to subscribe on behalf of their wards or dependants as a means of securing their future.“The fund is open-ended and investors will be at liberty to subscribe to units units through the fund manager or any other agent approved by the fund manager after the IPO.“Although the fund has an initial target of 500million units but the fund manager will issue additional units of the fund which is to be subscribed on demand.”





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