Stanbic IBTC Lists N1bn Pension ETF To Drive Liquidity

Stanbic IBTC Asset Management Limited (SIAML) listed 10 million units of N100 each of its Pension ETF 40 fund on the Nigerian Stock Exchange (NSE).
Speaking at the listing in Lagos, the chief executive, Stanbic IBTC Asset Management Limited (SIAML), Bunmi Dayo-Olagunju, said, “The Pension ETF 40, created to closely replicate the total return of the NSE Pension 40 index.”
She noted that the fund was designed to provide investors access to the most liquid publicly quoted companies on the NSE that are compliant with the regulatory requirements for investing pension assets.
Highlighting some of the benefits of the ETF, Dayo-Olagunju said it would provide investors with a strategic exposure to the equities market, allowing for flexibility, cost effectiveness, diversification of investment, as well as liquidity. She added that it would act as a benchmark for PFAs to measure performance and report same to Retirement Savings Account (RSA) holders.
Also, the executive director of Stanbic IBTC Asset Management, Shuaib Audu added that the fund expects to pay out 90 percent of all of its net earnings to its unit holders every quarter.
According to him, the fund manager reserves the option to automatically reinvest cash distribution into the fund and issue additional units to unit holders subject to their qualification on the record/closure date.
The chief executive officer of NSE, Mr. Oscar Onyema, commended SIAML for contributing towards the growth of ETF market, while he advised on the need for investors’ educations as awareness is still low.
He urged stockbrokers to support the product by introducing it to their clients.
The managing director of APT Securities and Funds Limited, Mallam Garba Kurfi, noted that more education needs to be taken to retail investors especially investors at the grassroots.
“I deal primarily with retail investors, of which I have over 40,000, however not a single one of these investors have asked me to purchase an ETF since its inception,” he said.
Kurfi urged the regulatory bodies to deepen education from the masses by taking a cue from how the MMM Ponzi scheme gained popularity, citing that better funding for the education of ETF will further deepen its success rate.

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