Cordros Dollar Fund: Investment that Protects Your Naira, Gives Returns
Cordros Dollar Fund: If you are holding Nigeria’s local currency in your account today, your naira worth is probably lower than it would have been without devaluation. Naira is not only weak but battered by a high inflation rate. This has widened Nigeria’s misery index amidst a high rate of unemployment – 33.3% is like having a whole of Ghana unemployed!
The dollar will remain stronger than Naira in decades to come, perhaps in a century or even forever if Nigeria continues operating with the current economic structure. For economic reasons, people that understand how money works are investing in dollars. What about you?
The thing is, Naira is struggling to retain value and the more it is devalued, the more Nigerians are getting poorer – data has no emotion. Imagine, six years ago, foreign exchange was N197 to a dollar.
Imagine you had placed $1,000 in a fund then valued at N197,000, your accessible fund will be close to N500, 000 today. Do you know that before Dangote Refinery takes off, the asset value has increased multiple folds?
There are many dollar fund that MarketForces Africa have pitched to readers. Here is our new found love: Cordros Dollar Fund.
Cordros dollar fund helps in diverse ways depending on needs. For example, those that have dollar payments obligations and scare about what future holds for Naira can start preparation before their obligations matured.
The fund is targeted at retail, mass affluent, high net worth individuals, Africans in Diaspora, and Institutional Investors who desire to meet future medium to long term liabilities.
With $500, you can open account with Cordros Asset Management.
One of the beauty of the fund is, while you can make periodic contribution to your dollar investment, it is also structured to pay dividends annually, thereby giving investors a medium-term investment horizon, liquidity, and maximum capital appreciation.
Each passing day add value to your account except Naira appreciate strongly, like N200 to a dollar! How likely is that? Impossible is nothing, guess what? Market always give signals.
Participating in dollar fund allows investors to protect their exposures against fluctuating Naira while earnings foreign currency returns – fantastic, I guess.
Cordros Dollar Fund main objective is to achieve capital appreciation in the medium to long term for Investors with dollar. There is no closing date for subscription.
The fund invests in US Dollar-denominated securities like Sovereign Eurobonds, Corporate Eurobonds, Money Market instruments and other quoted Corporate Eurobonds.
It allows you to conveniently invest and earn returns in US Dollars, and to offer you competitive returns than is obtainable from an average domiciliary bank account.
According to Codros Asset Management document, returns from Eurobonds will be accumulated as income and distributed periodically as stated in the Trust Deed.
The income from investing this fund by way of dividends and cash would be accumulated and reflected in its unit price.
The Cordros dollar fund will deliver capital appreciation in the medium to long term for investors with USD and also significantly higher returns than what is obtainable from the average domiciliary account in the local banks.
The Cordros Dollar Fund which is managed by Cordros Asset Management, owned by Cordros capital gives investors liquidity, diversification, annual income, and professional portfolio management.
Since incorporation, the fund manager has demonstrated competence in managing clients’ investment needs with its range of products and services.
The issue price is $100 per unit but the minimum initial investment for the offer is 5 units of the fund while additional/subsequent investments are issued in multiples of 5 units and payable in full upon subscription.
The minimum holding period of an investment in the fund is 180 days (6 months) from the date of subscription.
However, an early redemption fee of 1.5% on the redemptive value of the units can be redeemed before the expiration of the minimum investment period.
Investors can subscribe to units of the fund after the initial offering period from the Fund Manager or any of its designated agents/representatives or through any medium that may be approved and provided by the Fund Manager from time to time.
Payment for Units of the Fund can be made via a wire transfer made following instructions on the subscription form.
Investors are entitled to statement of unit holding, with respect to the number of units held by him/her as specified on such documents.
Joint unit holders are entitled to one statement in respect of the units held jointly by them which will be delivered to the joint holder whose name first appears on the Register.
Determination of returns of the Fund is dependent upon key macro-economic indicators, interest rates of the financial markets, and comparable investment returns in the market.
The Fund Manager does not influence these factors. Accordingly, it is impossible to guarantee any particular rate of return on the investment. However, the Fund Manager will strive to maximize competitive returns to unit-holders.
The Fund Manager intends to distribute income (less expense) as dividends to Unit Holders on an annual basis. The Unit-Holders shall have the option to elect to be paid dividends or to reinvest their dividends in new Units at the Offer Price.
Unit-Holders who elect to have their dividends reinvested in new Units shall be entitled to an issue of Units that shall be equal in value to the amount they otherwise would have received in cash as a dividend.
Cordros Dollar Fund: Investment that Protects Your Naira, Gives Returns
