By Peter OBIORA InvestAdvocate

New York (INVESTADVOCATE)- Cordros Asset Management Limited, the Asset Management  subsidiary of Cordros Capital Limited on Monday said it has opened a N1.0 billion Money Market Fund Initial Public Offering (IPO) by way of subscription.

Cordros said this is coming on the heels of the approval from the Securities and Exchange Commission (SEC) to open the IPO Monday August 1 and close it on Wednesday September 7, 2016.

According to the asset management firm, unit of sale is N100 per unit with a minimum initial investment of N10, 000 and N5, 000 subsequent investments with a minimum holding period of 30 days.

Cordros says target return is 14-16 percent with a 90-day Treasury bill rate and low risk profile with a quarterly income distribution.

Issuing house to the IPO is Vetiva Capital Management, Custodian and Trustee are united Bank for Africa Plc (UBA) and STL Trustees Limited. “This is a target return and not a guaranteed return,” Cordros said in an emailed statement heralding the offering.

“The Cordros Money Market Fund is authorised and registered in Nigeria as a Unit Trust Scheme and is an open-ended mutual fund with the primary objectives of preserving invested capital and generating income for investors. The Fund’s assets will be invested in low-risk short-term money market securities such as Nigerian Government Treasury Bills, Bankers’ Acceptances, Fixed Deposits, Commercial papers and other instruments permissible by the SEC,” Cordros added.

Wale Agbeyangi, managing director/chief executive officer (MD/CEO) of Cordros said the IPO is targeted at retail investors, who don’t want to take risk in the equities market; but want to receive returns on their investments and would likely get a targeted 14 to 16 percent on their investments. “We are targeting this offering to retail clients and people who don’t want to take risk in the equities market for them to make money and receive returns on their investments which could be up to 14 to 16 percent target returns,” Agbeyangi said.

Click here to download full Prospectus