Zenith Bank Mutual Funds

[Saintbeng]

Zenith Bank group held a completion board meeting ready for the launch of three mutual funds, Zenith Equity fund, Zenith Income fund and Zenith Ethical fund. However, this is still subject to the approval of the Securitiesand Exchange Commission.

Let's look out for this!

[bello abiodun]

zenith has come to stay going by unparallel performance in the past years.keep the house posted

[Saintbeng]

On speculation, heared the funds would open on 5th May. It's an open ended affair.

[tonidol]

Proshare News and Analysis
Zenith Bank floats N8.b mutual funds offer
Posted Friday, May 2, 2008

Zenith Bank Plc is set to raise a minimum of N8 billion from the capital market through an offer for subscription to three mutual funds, which opens next Monday, May 5, 2008.

On offer for subscription are 500,000,000 units of the Zenith Equity Fund, 200,000,000 units of the Zenith Income Fund and 100,000,000 units of the Zenith Ethical Fund at N10 per unit. The funds are to be managed by Zenith Capital, the investment banking arm of Zenith Bank Plc.

The funds have distinct features aimed at investors with varying risk preferences and investment considerations and are open ended, meaning there is no limit to the amount that can be invested either during or after the offer.

The Zenith Equity Fund is designed to provide long term capital appreciation from diversified portfolio in quoted equities and debt instruments and is targeted at investors who desire aggressive growth and are not averse to high risk.

The Zenith Income Fund, designed for investors seeking average return in secure investments, will invest 70 per cent of its fund in assets such as government securities, corporate bonds, and commercial bills while 30 per cent will be invested in equities.

On its part, the Zenith Ethical Fund is designed for those who seek long term capital growth through investment in equities but who have strong ethical considerations.

When it opens, investors will be free to subscribe to units of the fund through Zenith Bank Plc or any other approved agent by the fund manager from time to time after the IPO. Minimum investible amount in the fund during and after the offer is N100, 000.00

The Zenith Funds like all other open-ended funds, are very liquid as investors have direct recourse to the Fund Manager in order to realize the prevailing value of their investments. The funds, which will enjoy economies of scale, will be diversified across several sectors and securities therefore ensuring reduced volatility in each portfolio.

All three funds serve as useful investing tools that can be used to create a regular savings plan.

In order to monitor their investments in the Zenith Funds, investors will have online access to their statements of accounts through the manager’s website. Investors can also purchase and redeem units in any of the funds at any of Zenith Bank’s branches nationwide.

Investors in any of the Zenith Funds will benefit immensely from the combined experience of over 120 years of the core team in investment management, which achieved a return in excess of 89 per cent in 2007 on its privately managed equities-based portfolio.

Zenith Bank Plc, the fund manager, was established in 1990, listed on the Nigerian Stock Exchange in 2004 at a price of N10.90 per share and has since grown to be one of the largest companies by market capitalization ($6.5 billion) listed on the Nigerian Stock Exchange.

Zenith Bank Plc is the strongest financial group in West Africa in terms of quality of assets, safety of funds and brand and has won numerous awards including ‘Quoted company of the Year, 2007’ by the Nigerian Stock Exchange and ‘Africa’s Bank of the Year’ by Africa Investor Magazine.


Guys, what is your take on these investment instruments???

[Apache]

Thread already exist for this topic in the mutual funds forum

[tonidol]

Proshare News and Analysis
Zenith Bank floats N8.b mutual funds offer
Posted Friday, May 2, 2008

Zenith Bank Plc is set to raise a minimum of N8 billion from the capital market through an offer for subscription to three mutual funds, which opens next Monday, May 5, 2008.

On offer for subscription are 500,000,000 units of the Zenith Equity Fund, 200,000,000 units of the Zenith Income Fund and 100,000,000 units of the Zenith Ethical Fund at N10 per unit. The funds are to be managed by Zenith Capital, the investment banking arm of Zenith Bank Plc.

The funds have distinct features aimed at investors with varying risk preferences and investment considerations and are open ended, meaning there is no limit to the amount that can be invested either during or after the offer.

The Zenith Equity Fund is designed to provide long term capital appreciation from diversified portfolio in quoted equities and debt instruments and is targeted at investors who desire aggressive growth and are not averse to high risk.

The Zenith Income Fund, designed for investors seeking average return in secure investments, will invest 70 per cent of its fund in assets such as government securities, corporate bonds, and commercial bills while 30 per cent will be invested in equities.

On its part, the Zenith Ethical Fund is designed for those who seek long term capital growth through investment in equities but who have strong ethical considerations.

When it opens, investors will be free to subscribe to units of the fund through Zenith Bank Plc or any other approved agent by the fund manager from time to time after the IPO. Minimum investible amount in the fund during and after the offer is N100, 000.00

The Zenith Funds like all other open-ended funds, are very liquid as investors have direct recourse to the Fund Manager in order to realize the prevailing value of their investments. The funds, which will enjoy economies of scale, will be diversified across several sectors and securities therefore ensuring reduced volatility in each portfolio.

All three funds serve as useful investing tools that can be used to create a regular savings plan.

In order to monitor their investments in the Zenith Funds, investors will have online access to their statements of accounts through the manager’s website. Investors can also purchase and redeem units in any of the funds at any of Zenith Bank’s branches nationwide.

Investors in any of the Zenith Funds will benefit immensely from the combined experience of over 120 years of the core team in investment management, which achieved a return in excess of 89 per cent in 2007 on its privately managed equities-based portfolio.

Zenith Bank Plc, the fund manager, was established in 1990, listed on the Nigerian Stock Exchange in 2004 at a price of N10.90 per share and has since grown to be one of the largest companies by market capitalization ($6.5 billion) listed on the Nigerian Stock Exchange.

Zenith Bank Plc is the strongest financial group in West Africa in terms of quality of assets, safety of funds and brand and has won numerous awards including ‘Quoted company of the Year, 2007’ by the Nigerian Stock Exchange and ‘Africa’s Bank of the Year’ by Africa Investor Magazine.


Guys, what is your take on these investment instruments???

[Saintbeng]

All the funds are good. Looking at the track record of the mother company, Zenith Bank, the 3 Funds are instruments that would give high returns to investors. I think I'll go more into Zenith Equity Fund.

[tonidol]

Originally Posted by Saintbeng

All the funds are good. Looking at the track record of the mother company, Zenith Bank, the 3 Funds are instruments that would give high returns to investors. I think I'll go more into Zenith Equity Fund.

Saintbeng, what is your definition of good returns please?

[Apache]

Guys,
You will need to see the prospectus to judge how good this offer is. It is just like every other mutual fund.
One thing to look out for in mutual fund investing is the pedigree of the fund manager which unfortunately, Zenith does not have.
Let's see the prospectus before we start rating it good or bad.

[zainabusman]

Originally Posted by Apache

Guys,
You will need to see the prospectus to judge how good this offer is. It is just like every other mutual fund.
One thing to look out for in mutual fund investing is the pedigree of the fund manager which unfortunately, Zenith does not have.
Let's see the prospectus before we start rating it good or bad.

I totally agree with u. Zenith has no public track record in Funds management. Right now i will rather stick with IBTC or ARM.

[nazzyon]

I bought some of the Cashcraft's- Bedrock Fund.

And since then we are still waiting.

Whenever I call they would say "We will start trading soner than you think".

[Zito]

No doubt, some of these fund raisings are meant to deceive the ignorant public. Is good we do proper analysis before going forward!!!

[Babs_O]

Originally Posted by Zito

No doubt, some of these fund raisings are meant to deceive the ignorant public. Is good we do proper analysis before going forward!!!

It's not all deception.

These funds are good for:
1. those that do not need the stress of Stock monitoring and management
2. or do not have enough cash to do worthwhile stock trading / investing
3. or need a cheap way of getting the returns of the stockmarket without too much risk as a typical fund manager will buy so many companies with a view of meeting or exceeding the performance of the share index.

A lot of people fall into this fold hence the need for these mutual funds. There is a market demand for open ended funds where people can decide to save monthly into a fund where the fund manager takes the stress of stocks buying / selling dividends collection and bonus issues follow up.

[zainabusman]

Originally Posted by nazzyon

I bought some of the Cashcraft's- Bedrock Fund.

And since then we are still waiting.

Whenever I call they would say "We will start trading soner than you think".

Even though we have no track record of Zenith as a fund manager, i dont think they will behave like Cash craft. Zenith will wrap up things in a timely manner.

The last PO was executed efficiently. I expect this one to be also executed efficiently.

However, this is not a recommendation to buy. I am sticking with IBTC ethical fund. I might consider Zenith fund in the future if the record is positive.

[Apache]

Originally Posted by zainabusman

Even though we have no track record of Zenith as a fund manager, i dont think they will behave like Cash craft. Zenith will wrap up things in a timely manner.

The last PO was executed efficiently. I expect this one to be also executed efficiently.

However, this is not a recommendation to buy. I am sticking with IBTC ethical fund. I might consider Zenith fund in the future if the record is positive.

To further butress your point, The ARM aggressive growth fund was packaged by Zenith Capital whom I believe will be in charge of this too. So you can take a cue from there as regards timing

[magnus]

Guys, please any news on the allotment and certificate distribution on the just concluded Zenith ipo?I understand it was oversubscribed, It would be a good thing to have your returned money in order to invest it in the mutual funds.Guys I am awaiting your reply.