A new mutual fund known as the EcoCapital Prime Fund has been introduced onto the Ghanaian market to help solve some challenges encountered by investors.
The EcoCapital Prime Fund is a money market mutual fund designed to help investors interested in short term investment that provided modest returns, with adequate liquidity to solve their investment problem.
The board of directors of the fund was given approval on April 23, 2019, to offer shares in the mutual fund to the public within an Initial Public Offering (IPO) period from July 30 to August 19, 2019.
The Securities and Exchange Commission, the regulator of Ghana’s capital market, continues to be faced with major problems including illiquidity and insufficient financial assets.
Others also hold the view that the assets available do not exactly meet the right investment need of investors through the provision of the ideal trade-off between risk and return.
A board member of EcoCapital Prime Fund, Desmond Aboagye, told Joy Business the fund is open to shorter period investments with maximum returns and limited risks.
He says with the recent downturn in the capital market, the next alternative will be the debt market.
‘If you are a retail investor seeking to do something little with the little money you have for investment, you can look at the EcoCapital Prime Fund to give you that form of returns and liquidity you desire,” he said.
The fund hopes to raise an initial amount of GH¢ 500,000 through the issuance of a minimum of 1 million shares at 50pesewas per share.
The fund was unveiled as a money market mutual fund that will invest in Government of Ghana Treasuries, Obligations of Banks, Commercial Paper, Certificates of deposit and other short term obligations of Ghanaian and foreign entities.
Its objective is to maximise current income to the extent consistent with the preservation of capital and maintenance of liquidity, to meet short term need.
It also seeks to enhance shareholders’ wealth to meet medium to long term financial goals.
The launch of the EcoCapital Prime Fund and the initial public offer was held on Monday, July 29, at MJ Grand Hotel in Accra which was witnessed by the Fund Manager EcoCapital Investment Management Limited, the Custodian Guaranty Trust Bank Ghana Ltd, Securities Industry players and the media.
Speaking at the event, Board Chairman of the Fund, Dr. Hillar Addo, assured all prospective investors of the resolve of the board to ensure a good balance between risk and return, was pursued by the Fund at all times.
He again added that the board will ensure absolute compliance with legal and regulatory frameworks and guarantee that the Fund manager and custodian execute their duties with legal conformity in mind.
Head of Financial Institutions Group at GT Bank, Solace Fiadjoe, pledged the bank’s commitment to exercise independent oversight over the actual assets of the Fund and to ensure its strict compliance to approved investment practices.
Chief Executive Officer of EcoCapital Investment Management Limited, Dela Agbo, expressed gratitude for being part of such an event and committed the Fund managers to the provision of professional investment advice, backed by solid research and adequate due diligence.
The Initial Public Offer for the EcoCapital Prime Fund has duly opened and investments into the fund are to be made at any branch of the receiving agents, GT Bank Ghana Limited and EcoCapital Investment Management Limited.