Consistent with the Security and Exchange Commission’s (SEC) goal of making collective investment schemes the vehicle of choice for deepening the nation’s financial markets, First Atlantic Asset Management (FAAM) has launched the First Atlantic Income Fund (FAIF).
The open-ended mutual fund, its managers stated, will place an emphasis on liquidity – sacrificing investors’ capital or opportunities for returns.
Speaking at the launch, General Manager of the FAAM, Prince Atsianu, said introducing the Fund is proof of his outfit’s commitment to making investment opportunities more readily accessible, and cited First Atlantic’s track record in wealth and asset management over the course of more than 25 years – an indication of the quality of service the investing public should expect.
“We seek to provide maximum current income that is consistent, maintaining liquidity and preserving capital by investing in a diversified portfolio of money market and fixed income instruments,” said Mr. Atsianu.
He disclosed that the fund will issue an initial two million shares at 10 pesewas each, as it seeks to raise a minimum amount of GH¢200,000 from individual and institutional investors; adding that as much as 90 percent of the portfolio will be invested in securities such as fixed deposits, commercial papers, corporate bonds by blue-chip companies, with the bulk going to government of Ghana bonds and bills.
The Fund’s manager further disclosed that the targeted benchmark return is the 182-day Treasury bill rate plus a premium of two percent.
“At any given point in time, the 182-day rate plus two percent is the minimum that investors should expect,” he said.
Despite forgoing entry and exit fees to boost participation in the Fund, he encouraged the investing public to hold their investments for a minimum of three months to maximise their returns and gauge their performance.
FAAM, Mr. Atsianu added, has demonstrated its commitment to the digitalisation agenda with the introduction of its mobile app, in addition to existing channels.
On his part, a director of the Fund, Reid Richelieu Paige Wiles, pledged the Board’s commitment to ensuring its operations are governed by the highest ethical standards – noting that First Atlantic is particularly awake to its fiduciary responsibilities to investors. He said this will be achieved in collaboration with partners including the Fund’s custodian – GT Bank.
“The board of the Fund will also ensure that it is governed by the highest ethical principles in the investors’ interest,” he said.
