The Coral Growth Fund (CGF) was established on February 1, 2001. It is an actively managed, open-ended unit trust scheme that invests in equities and debt securities of large companies quoted on any Nigerian Stock Exchange, investment grade fixed income securities and in the money market. The CGF invest 65% in quoted equities and the balance of 35% in fixed income securities and the money market.
The objective of the CGF is to enable investors’ achieve capital growth over the long-term. In particular, the CGF will enable investors satisfy a broad variety of financial needs and can serve as a:
Pension / Retirement Plan
Educational Plan ( for your children)
Contingent Plan (e.g. medical bills)
Initial investors must invest an initial minimum sum of N50, 000.00. Additional minimum investment of N10, 000.00 can be made thereafter.
Redemption can be made after a five business days’ notice has been given in writing to the Fund Manager, FSDH AM
The Trustee to the CGF preserves the interest of unit holders by ensuring that the Manager’s activities adhere to the provisions of the Trust Deed. In addition, the administration of the CGF is carried out in accordance with global best practices as the assets of the CGF are held by an independent custodian. The CGF is the first fund in Nigeria to fully segregate the fund assets in this manner.
BENEFITS OF INVESTMENT IN THE CGF
Professional Expertise of the Manager
Investors are relieved of the day-to-day administrative burden of making informed investment decisions in an environment where the availability of choice makes it a complex process to manage. In addition, the responsibility associated with the systematic collection of dividend warrants, share certificates and the regularization of your portfolio from the registrars are all passed on to the Manager of the CGF.
The Manager of the CGF, FSDH AM, comprises of an experienced investment management team, which makes investment decisions based on amongst others, the output of the highly rated FSDH Research team. This enables the Fund Manager to manage the investments of the fund efficiently as evidenced by its track record.
Diversification & Safety of your Investment
The CGF is an alternative asset to include in your total investment portfolio, which will serve as a benchmark for your other investments.
The diversified nature of the CGF implies that as an investor, you will reduce your risk, as the value of each security held by the CGF is not expected to move in the same direction at the same time.
The diversified nature of the CGF also implies that with an investment as low as N50,000.00, an investor in the CGF invests in several high quality companies at the same time.
Enhanced Portfolio Return
The pooled nature of the CGF will significantly reduce cost to the individual investor and lead to higher yields. This is because the CGF achieves economies of scale in research, transaction costs and investments.
In addition, the CGF is tax efficient, as the withholding tax of 10% is the final tax payable by individual investors in the CGF. Note that Capital Gains Tax is not payable by investors (foreign or local) in Nigeria.
Liquidity of your Investment
The CGF is a liquid investment because it is an open-ended scheme. This implies that as an investor you can redeem your investment, if you so wish at the prevailing bid price.
Investments in the CGF can also serve as collateral for a facility from any financial institution, subject to their internal credit policy
The CGF will help investors establish and manage, on an on-going basis, a savings plan that can serve as a pension plan, asset replacement plan, health plan, education plan etc. Investors in the CGF can on a regular basis (e.g. monthly, quarterly) increase their investment in the Fund, by either transferring additional funds or by issuing a direct debit instruction to their banks to debit their account with a stated sum and credit same to the CGF.
The Direct debit forms can be filled and submitted to the Fund Manager for onward processing. Kindly contact the fund manager for additional information on setting up a direct debit instruction.