Finance

United Capital launches special dollar-denominated fund

United Capital proposes N9bn dividend for 2022

United Capital Plc, the nation’s foremost investment bank and financial services group, has kicked off the new year with the launch of its new mutual fund, the United Capital Global Fixed Income Fund, a specialised open-ended dollar-denominated fund that invests in securities and Eurobonds, floated by the Federal Government of Nigeria and other sovereigns, as well as top-tier corporates, money market instruments, and alternative investment assets.

The United Capital Global Fixed Income Fund is the eighth mutual fund managed by United Capital Asset Management Limited, a subsidiary business of the group, and one of Nigeria’s leading fund managers. The fund exposes investors to a broader range of asset classes, allowing them to generate regular income streams by investing in select dollar-denominated global fixed income instruments issued by non-Nigerian issuers, sovereign bonds, and top-tier corporate Eurobonds.

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Subscribers can expect competitive short- to medium-term capital appreciation on their (USD) dollar-denominated holdings in the fund, which is said to be higher than the return rate on domiciliary deposits. With rising inflation and exchange rate volatility, the fund allows local investors, particularly, to diversify their portfolios and hedge against currency devaluation while generating potentially higher returns.

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The Managing Director/CEO of United Capital Asset Management Limited, Odiri Oginni, commented on the fund saying “The current macroeconomic clime in Nigeria has prompted a rise in demand among investors for high-yielding investment options in foreign assets. At United Capital Asset Management, we are constantly exploring new ways to meet the ever-changing demands of our clients, which led to the creation of this fund. The United Capital Global Fixed Income Fund is an avenue for investors to diversify their portfolios and income streams while providing long-term capital preservation and appreciation, through investment in a selected portfolio of global fixed income assets. She added “Our existing mutual funds, have continuously provided attractive returns for investors, and we are certain that this new fund will do the same.”

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The United Capital Global Fixed Income Fund is now open for subscription to Qualified Institutional Investors, High Net Worth Individuals (HNIs), Africans and Nigerians in the diaspora, and Institutional investors with USD-denominated liquidity. With $50,000 and multiples of $500, investors can access the fund and benefit from the attractive returns it offers.

Sunnews

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