Investors looking for an alternative to volatile stocks should invest in the new Ecobank Development Corporation (EDC) Fixed Income Fund, says Head of Asset Management of EDC Ghana, Sarah Brainoo Arhin.
The Fund, a fixed-income open-ended unit trust, aims to outperform short-term interest rates being offered on government securities and achieve current income on a steady basis while preserving capital.
The Fund will invest in high-quality fixed-income securities such as government and corporate bonds, banker?s acceptances, promissory notes, call money and fixed deposits of highly rated institutions in Ghana.
?The fund is for people who are planning to build up capital for some time; like people who want to plan their retirement,? Mrs. Arhin said at the launch in Accra.
?It is a fund for investors with low appetite; and because there is no equity, volatility is expected to be moderate.?
The fund is targetting endowment, pensions, provident and other employee funds; insurance companies, high net-worth individuals and the general public.
EDC?s Fixed Income Fund offers investors the opportunity to have access to professional portfolio management and will generate income daily, Mrs. Arhin said.
It is managed by EDC Investment Limited with Merchant Bank Ghana Limited as trustee. The offer price is GH?1 per unit with a minimum investment of 50 units and multiples of 10 thereafter.
A regular plan exists for the benefit of investors who would like to purchase units on a regular basis. The initial minimum deposit is set at GH?50 and the regular investment purchase is set at a minimum value of GH?20.
The initial offering of interest is expected to raise a minimum amount of GH?100,000 and will remain open for a period not exceeding 20 working days, inclusive of the days which the offer opens and closes, and a front load of 0.5% will be charged on all deposits.
The Application List opened 18th June and will close on 13th July, 2012. Receiving agents will start making returns to fund managers on July 20th and issue and distribution of contract notes will commence on 27th July, 2012.
She added that although the funds will be managed to achieve maximum returns, due to the inherent risk in securities the total attainment of the objectives of the investment cannot be guaranteed.
The fund will however be expected to deliver optimum returns on a best-offer basis.
EDC also manages the EDC Ghana Balance Fund, previously called iFUND.???????????
By Bernard Yaw ASHIADEY