PAC Asset Management Limited, a fund manager, has concluded plans to inaugurate a N1bn fund called the PACAM Balanced Fund.
The fund and portfolio manager, which is registered with the Securities and Exchange Commission, on Tuesday held the completion board meeting of the fund with all the parties to the offer duly endorsing it.
The PACAM Balanced Fund is offering for subscription one billion unites of N1 each at par with minimum subscription of 50,000 units and multiples of 10,000 units thereafter, payable in full on application.
According to the fund manager, the offer opens on February 9 and closes on March 18, this year.
The fund is offering investors an opportunity to own high quality assets held in a diversified portfolio with steady returns on investment, estimated 16.02 per cent in 2015, 15.86 per cent in 2016 and 15.88 per cent in 2017.
Lead Capital Plc is the lead issuing house to the offer, while PanAfrican Capital Plc, the parent company of the fund manager, is the joint issuing house with FBN Trustees limited acting as the trustees to the offer.
The Managing Director and Chief Executive Officer, PAC Asset Management, Mr. David Okwuadigbo, said at the completion board meeting, “The PACAM Balanced Fund, which we are offering to the investing public is an open-ended mutual fund designed to achieve capital preservation, long-term capital appreciation, steady and stable returns on investment.”
He added that the fund would invest in a balanced and diversified portfolio.
Specifically, 40 per cent of the fund is expected to be invested in equities, up to 15 per cent in bonds, 15 per cent in the money market and 30 per cent in real estate.
Okwuadigbo explained that the fund was also ideal for investors, who were very busy and were not in a position to properly track investments made through a stockbroking house.
“We are saying, ‘If we put this fund together and dedicate 24 hours a day of our time and give it professional management, it will certainly do better’.
“In fact, if you check all the developing economies, you will find out that the mutual funds are investment instruments that are actually becoming very valued and appreciated because of some of the reasons I mentioned.”
The Chairman, PAC Asset Management, Mr. Chris Oshiafi, urged investors to take advantage of the fund to avoid facing economic challenges that were similar to what the country was currently facing now in the future.
According to him, the current economic challenges in the country can be attributed to a culture of excessive consumption rather than a culture of step-by-step savings; a situation where the country has been spending more than it is saving.
He added, “People should save and have investment for the rainy day and people should have investments that are safe. The PACAM Balanced Fund presents you an opportunity to have a very safe investment because a balanced fund is diversified across asset classes. We are confident that Nigerians now get the message and the message is that we should have savings and investments.”
On how safe the fund was for investors Oshiafi said, “We have gone out of our way to make sure that the parties to this fund are very experienced such that they will give that necessary protection to investors who come into this fund.”
The PAC Asset Manager, who stressed that the fund’s investment committee members had over 80 years of cumulative experience in the business, said, “With these put together, we are confident that money raised in this fund will be judiciously applied in such a way that the returns to investors will be fare above what has been promised in the prospectus.”
Punch
