On Friday, November 1st, 2019, the asset management firm held a signing ceremony for the proposed Dollar Fund in Ikoyi, Lagos.
In a statement made available to Business Insider SSA after the ceremony, Cordros says the Dollar Mutual Fund will be offered to the public in the coming weeks.
Speaking at the signing ceremony, Wale Agbeyangi, the Group Managing Director at Cordros, noted that, “The Cordros Dollar will help investors diversify their portfolio while also helping those with US Dollar obligations hedge against currency risk.
“The Fund’s objective is to achieve capital appreciation in short to medium term for investors with USD and convertible currencies”.
In a similar vein, Mrs. Morenike Da-Silva, the Managing Director of Cordros Asset Management Limited stated that “With the Cordros Dollar Fund, investors who have been discouraged by the high entry levels for US Dollar based investments will now have easier, convenient access”.
"‘We believe that the Cordros Dollar Fund provides professional management and will help investors hedge their savings from the eroding effects of inflation as the underlying assets are high-quality Eurobonds and USD money market instruments .” Said Adegbolahan Aina, the Portfolio Manager.
Investors to diversify portfolios in foreign currency
The Cordros Dollar Fund is coming at a time when speculations surround the strength of the Naira, and investors are looking to diversify with investments denominated in foreign currency.
On Wednesday morning, the naira opened at N362.38 at the Investors’ & Exporters’ FX Window and N360 at the parallel market to a dollar.
At the CBN rate, the currency trades at N306.95 per dollar.
Details of the Cordros Dollar Fund
The company will be offering 20,000 units at $100 each with a minimum subscription of 5 Units ($500) for an initial fund size of $2 million.
The Fund is said to be an open-ended investment with continuous subscriptions.