The Nigerian Capital Market received a major boost in May 2019 as Greenwich Asset Management Limited (GAML) announced the listing of 10 million units of the Greenwich Alpha Exchange Traded Fund, an index-based mutual fund that tracks the 30 largest companies on the Nigerian Stock Exchange (NSE).
The Greenwich Alpha ETF’s 10 million units are priced at N100 per unit and seek to raise N1billion as a start-up for the open-ended mutual fund. The minimum subscription is 1,000 units or N100,000 and thereafter, in multiples of 500 units or N50,000.
Speaking on the floor of the NSE, the Managing Director of GAML, Dayo Obisan, explained that the Greenwich Alpha Exchange Traded Fund, Alpha ETF aims to provide investors with a cost-effective and convenient way to take short, medium, or long-term positions on the performance of Nigerian Stocks.
According to Mr Obisan, ‘Greenwich Alpha is an open-ended ETF that tracks the NSE 30 Index, which is an index comprising 30 of the most liquid and capitalised stocks trading on the Exchange. It is designed to enable investors to obtain market exposure to the securities of the constituent companies of the NSE 30 index and to reproduce the performance of the index.’
He further noted that the target investors for the Greenwich Alpha ETF Fund are primarily local qualified institutional investors with an appetite for Nigerian equities who are looking to achieve a level of diversification, investors looking to avoid complications associated costs and risks of investing directly on the NSE and investors who require liquidity.
The Fund Manager also welcomed foreign and non-resident investors’ participation and noted that like shares, the Greenwich Alpha ETF units can be used as a collateral and are transferable. He further stated that the Funds’ assets will be invested in equities of listed companies in the financial services, consumer goods, agricultural, industrial goods and oil and gas sectors.’
Greenwich Alpha is authorised and registered in Nigeria as a unit trust scheme that is designed to assist investors to give market attention to the constituent companies comprising the NSE-30 Index.
GAML, a renowned name in the Asset Management Industry currently has two other mutual funds, including the Greenwich Plus Money Market Fund (which is listed by memorandum on the NSE) and the Nigeria Entertainment Fund. The Company is registered by the Securities and Exchange Commission as a fund/ portfolio manager. It is also a registered member of the Fund Managers Association of Nigeria (FMAN).