EDC launches Mutual Fund

Accra, March 2, GNA - Ecobank Development Corporation (EDC), the investment banking wing of the Ecobank Group, on Monday launched an open ended fund on the Ghanaian market with a call on investors to take advantage of it to diversify their investments.

Dubbed iFUND, the balanced mutual fund will invest 50 percent of its assets in fixed income instruments and the other 50 percent in listed equities under normal market conditions. "The objective of the fund is to preserve and enhance shareholders' wealth to meet medium to long-term financial goals and create liquidity to meet short term needs," Mr Paul Mante, Acting Head of EDC Investments Limited, Managers of the Fund, told journalists at the launch. The Fund proposes to raise a minimum subscription of GH¢200,000 during its initial public offer period that runs between March 2 and March 20.

EDC is offering a minimum of two million shares at GH¢0.10 per share in the Initial Offer and investors are allowed to purchase a minimum of 200 shares and thereafter in multiples of 100 shares. Mr Mante said as fund managers, EDC Investments would explore investment within the West African sub-region as well as East Africa through using its affiliation with EDC and Ecobank offices in the 27 African countries.

While acknowledging the effects of the global financial crisis on various African markets, Mr Mante said after careful study of the situation, the Fund Managers were of the view that "there are very attractive emerging opportunities". "The Managers are aware of the difficult and jittery investment climate at the moment, but they also believe that in times of severe market correction, there is always a window of opportunity for wealth transfer from the fearful to the astute investor," he said. Mr Mante asked the public to buy into the fund to diversify their portfolio and reduce risk.

Mr Mike Ashong, Managing Director, EDC, who performed the launch of the iFUND, asked the public to tap into the rich investment banking experience of EDC to purchase the fund.