Discerning investors, who subscribed to the ongoing offers for target-date mutual funds by Cordros Asset Management Limited will be able to use their investments to achieve their lifetime goals while securing their funds and earning above-average returns over the medium to long-term period.
At an investors’ forum at the weekend in Lagos, Cordros Asset Management Limited outlined the benefits of its two target-date mutual funds. Cordros Asset Management last week opened application lists for two mutual funds aimed at raising N1 billion in long-term funds for investment in various financial assets.
Cordros Asset Management-a subsidiary of Cordros Capital Limited, is offering 5.0 million units each in five-year Cordros Milestone Fund 2023 and 10-year Cordros Milestone Fund 2028 at N100 each. Application list opened for the two mutual funds on Monday June 18, 2018 and will close on July 27, 2018. The minimum initial investment for the offer is 25 units or N2,500 while additional investments shall be a minimum of 10 units thereafter.
The two mutual funds are target-date mutual funds, which pursue a long-term investment strategy to manage their mix of asset classes, with a tendency to become more conservative as the target date approaches. Target date funds, also known as lifecycle funds, are usually designed to offer a convenient way to invest through a portfolio of assets.
Cordros Capital Limited Group Managing Director, Mr. Wale Agbeyangi said the investment group is pioneering target-date funds in Nigeria to provide investors with opportunities to realise their goals while saving over the medium to the long-term.
“It is also laudable that the Cordros Milestone Funds 2023 and 2028 are the first set of target-date mutual funds to be launched in Nigeria. This represents a significant achievement for not just Cordros but the entire capital market,” Agbeyangi said.
According to him, the milestone funds are strategic products aimed at catering for the retail segment of the economy and are specially designed to provide for individuals and corporations saving towards a target.
Cordros Asset Management Limited Chief Executive Officer, Mr. Leye Adekeye said the mutual funds would assist investors to hedge their savings from the eroding effects of inflation.
He noted that at different stages in life, people usually make plans and take decisions about family, career, business, travel, education and others things that they care about and the milestone funds will help them to achieve these targets.
“Choosing the right investments in achieving our milestone goals matter. It can be difficult to decide which investment is right for your goal, when to start investing towards that goal can also be hard to determine. What about crafting the right goal-based plan and actually sticking to it. With target-date funds, the decision of how to invest for milestone goals is not difficult. You simply invest in the fund closest to the time when you want to utilise your funds,” Adekeye said.
According to him, the Cordros Milestone Funds are a simple way to save and invest towards a goal as they a real inflation hedge advantage over typical savings instruments, have minimum investment requirements and they are embedded with a goal-based financial plan and professional management.
According to the fund manager, the funds will give investors benefits of good capital appreciation, diversification across asset classes and automatic rebalancing of assets that help to preserve investors’ assets.
Also, investors will benefit from automatic adjustment for changing risk profile and annual income and professional portfolio management.