What is the Coral Growth Fund?

The Coral Growth Fund “CGF” was established in February 1, 2001 and is a an actively managed, equities-based, open-ended unit trust scheme designed to enable investors achieve capital growth over the long-term.

How does the CGF enable the investor achieve capital growth over the long-term?

The CGF pools money from subscribers to invest in large capitalization equity and debt securities quoted on the Nigerian Stock Exchange as well as fixed income securities in the money market.

In order to achieve capital growth over the long term, the CGF will have a larger proportion of its assets, approximately, maximum of 65% invested in equity securities while the balance of 35% will be invested in fixed income securities.

What do you mean by “equity” and “fixed income” securities?

Equity securities refer to stocks or shares of companies that are quoted on a stock exchange. Fixed income securities are issued by both governments and companies as a means of raising money to finance their business activities in the short to medium term.   

Why did you decide on this portfolio mix?

Why should anybody invest in the CGF and not directly?

Track record
The Manager has a proven performance track record achieving a return of over 574.66% from inception in February 1, 2001 to December 31, 2007. This means that an investment of N1 million at inception would have grown to approximately N5.74 million by December 31, 2007.

Instant exposure to a wide variety of equity securities

The CGF is inherently, a ready-made, diversified portfolio of securities because it is invested in several high quality companies at the same time. This age old wisdom of not putting all your eggs in one basket ensures that an investor’s risk is minimized.

Less administrative burden

The Manager of the CGF ensures that the investor is relieved of the day-to-day administrative burden of deciding what to buy or sell, liaising with stockbrokers or liaising with the registrar to collect dividend warrants and share certificates. Besides, the objective of the Manager is always in lockstep with that of the client. There are no commissions. Therefore, you get unbiased advice. For Nigerians living abroad, it’s a definitely a problem dealing with the administrative burden and analysis required for direct investments in t he Nigerian stock market.

What is the Coral Income Fund?

The Coral Income Fund “CIF” was established in May 2006 and is a an actively managed, income-based, open-ended unit trust scheme designed to enable investors set money aside (savings) for the future and preserve capital achieve stable and consistent income flows and outperform inflation over the long term.

How does the CIF achieve stable and consistent return for investors?

The CIF pools money from subscribers to invest in high yielding fixed income securities as well as large capitalization equity and debt securities quoted on the Nigerian Stock Exchange.

In order to achieve capital preservation over the long term, the CIF will have a larger proportion of its assets, approximately, 70% invested in fixed income securities while the balance of 30% will be invested in equity securities.

What do you mean by “fixed income” and “equity” securities?

Why should anybody invest in the CIF and not directly?

A.  Track record
The Manager has a proven performance track record with the CGF (an equities based unit trust scheme managed by the Manager, FSDH Asset Management Limited) achieving a return of over 574.66% from inception in February 1, 2001 to December 31, 2007. This means that an investment of N1 million at inception would have grown to approximately N5.74 million by December 31, 2007.

Liquid nature of your investment

The CIF is a liquid investment as the investor may redeem his/her holdings from the Manager within 5 business days from the redemption request at the prevailing bid price irrespective of prevailing market conditions.

Less administrative burden

The Manager of the CIF ensures that the investor is relieved of the day-to-day administrative burden of deciding what to buy or sell, liaising with stockbrokers or liaising with the registrar to collect dividend warrants and share certificates. Besides, the objective of the Manager is always in lockstep with that of the client. There are no commissions. Therefore, you get unbiased advice. For Nigerians living abroad, it’s a definitely a problem dealing with the administrative burden and analysis required for direct investments in t he Nigerian stock market.

Low transaction costs

All transaction costs are borne by all CIF subscribers, thereby reducing the average transaction cost per unit to the investor and leading to a higher yield.