Retail investors can now have access to the federal government bonds through the Vetiva S&P Nigeria Sovereign Bond Exchange Traded Fund, ETF as the company proposed to list the derivative on the floor of the Nigeria Stock Exchange, NSE, next week.
Vanguard gathered that the Vetiva S & P Nigeria Sovereign Bond ETF will be listed on October 24, 2016 at the exchange.
The ETF, upon listing, would be the first Bond ETF to be listed on the NSE, giving investors access to Nigerian Federal Government Bonds in retail lots; thus providing an opportunity for every Nigerian to invest in Federal Government Bonds.
At current pricing, as gathered investors will be able to purchase a unit for as low as N150 and have access to attractive bond yields.
The Managing Director of Vetiva Fund Managers Limited, Mr. Damilola Ajayi , when contacted for his comment on the product said “The listing of the Vetiva S&P Exchange Traded Fund is in line with the Federal Government’s plan to enhance financial inclusion. For the first time in Nigeria, investors now have access to Federal Government Bonds through a product that will be listed on the Nigerian Stock Exchange”.
According to him” The ETF, when listed, will trade like any other stock, and the Fund plans to effect distributions to its unit holders twice a year. Subsequent to listing, investors will be able to trade the Fund on the NSE through any stockbroker.”
Vetiva listed the first equity Exchange Traded Fund (The Vetiva Griffin 30 ETF, which tracks the performance of the NSE 30 Index) in March 2014. Vetiva also listed the first set of Sectoral Exchange Traded Funds (the Vetiva Banking ETF, Vetiva Consumer Goods ETF and Vetiva Industrial Goods ETF) in October 2015.
Vetiva Fund Managers Limited is registered with the Securities & Exchange Commission to carry on business as Fund/Portfolio Manager. The Company is primarily engaged in Fund and Asset Management through sponsoring and issuance of Mutual Funds, Exchange Traded Funds and other Collective Investment Schemes as well as Private Wealth Management.