By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE) – The Initial Public Offering (IPO) of Vetiva Griffin 30 Exchange Traded Fund (VG 30 ETF) which opened January 13, 2014 will close Friday January 31, 2014.
This will be 15 working days in line with the Securities and Exchange Commission’s (SEC’s) Rule 301 on the VG 30 ETF IPO.
On Monday January 13, 2014, Vetiva Fund Managers offered for subscription 100 million units of Vetiva Griffin 30 ETF securities at a unit price equal to 1/100th of the value of the NSE 30 Index on the day preceding the subscription to investors at the Nigerian capital market (NCM).
According to a notice from issuing house, Cordros Capital Limited, offer for subscription on a “Securities for Units” basis will deliver a portfolio of securities of the NSE 30 Index constituent companies, in exchange for units in the VG 30 ETF.
Cordros said minimum subscription limit is 5,000,000 units; indicating a block or 50 baskets of Vetiva Griffin 30 ETF Securities. ‘’Applications for more than 5,000,000 units must be in multiples of 100,000 units,’’ the notice said.
The notice to the offer affirmed that the index to be tracked is the NSE 30 Index, while investment income earned will be distributed to unit holders semi-annually less expense and the units being offered shall rank pari-passu in all respects with other future units.
Cordros Capital while highlighting on the benefit of the offer said it will serve as an important diversification tool for pension fund administrators, funds of funds, individual investors, foreign investors and all portfolio managers, amongst others who seek to profitably invest in the Nigerian equities markets.
A second benefit to be derived investing in the Vetiva Griffin 30 ETF is that it will offer investors the opportunity to gain from a professional portfolio management and advisory team with experience in successfully managing investment portfolios similar to the Fund through different market cycles.
The third according to Cordros Capital is that the ETF Securities confer on the Unit holder of one security a proportionate share in the economic benefits of all of the securities issued by the constituent companies comprising the Index. ‘’The Vetiva Griffin 30 ETF securities are attractive to professional investors, providing a useful asset allocation and cash management tool,’’ the company said.
Also, the structure of the Fund shall promote good governance, enhanced investor protection and successful investment outcomes. ‘’The Fund structure separates investment decision making functions from asset custody, in line with recommended best practice,’’ Cordros Capital affirmed.
The Vetiva Griffin 30 ETF is a fast, liquid, convenient and cost-effective way to invest in the NSE 30 Index, as a single security purchase gives exposure to the index.
Fund sponsors are Vetiva Capital Management Limited, Trustee of the Fund is Union Trustees Limited, while the Custodian is UBA Plc (Global Investors Services) (UBA GIS) and Authorised Dealer is Vetiva Securities Limited.
