Zenith mutual fund offers: a perspective on the Equity, Ethical and Income Portfolios (2)
May 29th, 2008 Tunde Brown || tunde.brown@stockmarketnigeria.com
By Tunde Brown
The Zenith Equity Fund has on offer, 500 million units at N10.00 each, and investors could only purchase a minimum of 10,000 units (N100,000 worth), with subsequent multiples of 2,500 units (or N25,000). The offer which opened on the 5th of May 2008, would close on the 11th of June 2008.
The Ethical fund on the other hand is also an open-ended type unit trust scheme, targeted to meet the preferences of investors who wish to ‘…achieve long term capital growth through investment in a portfolio of quality investments chosen on the basis of ethical (”socially responsible”) criteria’. In other words, this channel is meant for investors who seek to maximize both investment return and social good, but would not have their funds invested in companies that deal in Tobacco-based products, Alcohol, Gaming, Defense/weapons production, Banking and Insurance.
Just like the Equity Fund, the Ethical Fund is meant to suit the needs of investors who are high-risk inclined, with an aggressive growth objective, but constrained by ethical prefences. The class of assets to which the funds would be deployed is strictly listed stocks and unit holders can redeem their units at a relatively short notice. Other benefits of this Fund is that unit holdings could be used as collateral for obtaining credit and unit holders are not subject to withholding and/or capital gains tax in case of divestment.
The Zenith Ethical Fund, which ‘…is able to keep cash reserves to the minimm, holding mainstram equities’ has on offer 100 million units at N10.00 each, and a minimum of N100,000 or 10,000 units must be applied for, following subsequent multiples of 2,500 units.
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