By Peter acaEgwuatu
BGLAsset Management Limited has formally launched its two open ended mutual funds worth N2.5 billion.
The two mutual funds namely : Sapphire Fund of 2,000,000,000 units at N1.00 per unit, and Nubian Fund 500,000,000 units at N1.00 per unit , positioned to invest primarily in the equities market.

The Sapphire Fund is a fixed income fund which guarantees the principal investment as both funds are being targeted at investors interested in earning attractive returns in the medium to long term by investing in a diversified portfolio.

The Director of BGL Asset Management Limited and Deputy Group Managing Director of BGL Plc, Mr. Chibundu Edozie, intimated that the Nubian Fund has been developed for investors with a higher appetite for risk in their investment strategy to take advantage of medium to long term growth anticipated in the Nigerian equities market while the Sapphire Fund is targeted at investors with a lower appetite for risk in their investment strategy, given the relatively safe and stable outcome of investing in Fixed Income instruments.

Both Funds have received the final approval from the Securities and Exchange Commission (SEC) and opened on October 11, 2010 to be offered till November 17, 2010. All mutual funds in Nigeria, like the Nubian and Sapphire Funds are regulated by the SEC. Further approval has been given to UBA Trustees Limited to act as trustees of the funds.

Mrs. Modupe Mujota, Managing Director of BGL Asset Management Limited stated that the recent experience of investors in the Nigerian equities market highlights the importance of the role of professional fund managers.

‘’Mutual funds such as the Nubian and Sapphire Funds enable investors to diversify their risk as they invest in a variety of asset classes, encourage a savings culture and offer investors (including small scale investors) access to the expertise of professional fund managers which may otherwise have been unaffordable. We are confident that with our Nubian Fund, we will capitalise on the low valuations of the market’s blue chip stocks, and to this end aid profitable investment through proper planning and execution”.

Giving further insight to the investment strategy of BGL Asset Management Limited, Mrs. Mujota added that “The bond market has seen tremendous growth in recent years, with new FGN bond issues, and various sub-national issues providing decent yields to investors. BGL Plc has participated actively in this budding market.

With the BGL Sapphire Fund, we intend to take advantage of this investment window and provide our clients with appropriate portfolio diversification based on our knowledge and expertise of the market”.On conclusion of the allotment process the funds will be listed on the Nigerian Stock Exchange (NSE).