Dipo Olowookere
By Dipo Olowookere
An opportunity for retail and institutional investors in Nigeria to hedge against currency fluctuations has presented itself.
One of the leading investment companies in the country, Afrinvest Asset Management Limited, has introduced an open-ended mutual fund called Afrinvest Dollar Fund.
The investment scheme is approved by the Securities and Exchange Commission (SEC) and according to findings by Business Post, the firm is selling 20,000 units of the fund at $100 per unit, with an initial minimum investment amount of $1,000.
It was gathered that the firm, a subsidiary of Afrinvest (West Africa) Limited, designed the fund to make it possible for local investors to diversify their portfolios.
The Afrinvest Dollar Fund allows investors access to Dollar-denominated securities floated by Nigerian sovereigns, supranational entities and corporates as may be determined by the fund manager.
The company disclosed that the fund is flexible as there is free entry and exit for investors subject to the prevailing fund price.
Managing Director of Afrinvest Asset Management Limited, Mr Ola Belgore, explained that, “Members of the general public who have future Dollar obligations like health tourism, education fees and vacations can use the fund to save towards their goals.”
According to him, “The low initial investment amount means more investors can diversify their portfolios and benefit from our years of experience.”
He added that, “The launch of this fund illustrates quite well the mantra of Afrinvest which is simplifying investments, creating wealth.”
Explaining why the fund was created, he stated that it was to “help investors achieve income generation, capital preservation and portfolio diversification in the short to medium term.”
“It is designed to deliver significantly higher returns than the average domiciliary account and dividend will be paid twice a year,” he added.
In recent times, the unstable rate of the local currency against the American Dollar has given some investors something to worry about. This has made some local investors to search for foreign investment to keep them safe.
Last year, Africa’s richest man, Mr Aliko Dangote, expressed fears about this and noted that he was planning to open an office space in New York in order to “protect the wealth of the family.”
