Alpha Morgan Capital to Launch US Dollar Fund
Investment firm, Alpha Morgan Capital Limited has revealed a plan to launch its US dollar fund for subscription to interest investors in the Nigerian markets this week.
The investment firm plans to sell 20,000 units of US dollar fund at the rate of $100, according to information obtained by MarketForces Africa.
“… We are finally drawing closer to the launch of the Alpha Morgan Dollar Fund! The Fund subscription, which is slated to go live on August 24, 2023, offers $2,000,000 in value, with a minimum purchase of 10 units at $100 each at par”, the investment firm said in an email sent to investors.
A minimum holding period of 180 days is required in the fund; early redemptions/withdrawals during the 180 days holding period will attract a penalty charge of 10% on the accrued income of the redemption amount.
The firm said investors who subscribed to the US dollar fund cannot transfer the unit directly to any other customer’s account.
The firm explained that the Fund is designed to provide investors access to diversify their income stream by allocating a target weight of up to 55% of the fund’s asset to US dollar denominated fixed income instruments issued by the FGN, up to 30% in top quality Corporate Eurobonds and up to 15% in dollar denominated money market instruments issued by Nigerian Issuers.
“There will be a lock-in period of six months (180 days) from the subscription date, during which investors should not exit or redeem their Investment. Investors that want to exit before the 180 days holding period will suffer penalty charge of 10% on the accrued income on the redemption amount”, its prospectus stated.
The fund manager intends to distribute income as dividend to Unit Holders on an annual basis. The firm indicates that investors have the option to elect to be paid dividends or to reinvest their dividends in new Units at the Offer Price.
It stated that investors who elect to have their dividends reinvested would be entitled to an issue of units that with equivalent value to the amount they otherwise would have received in cash as dividend.
A dollar fund is a mutual fund that predictably comprises of a mix of dollar denominated Eurobonds, floated by the Federal Government of Nigeria and other qualifying Nigerian top tier corporate Eurobonds and dollar denominated money market instruments issued by Nigerian issuers. #Alpha Morgan Capital to Launch US Dollar Fund
