EDC launches new fixed income product

ECOBANK Development Corporation (EDC), a subsidiary company of the Ecobank Group, has introduced a new investment product unto the market.
The product, dubbed; “EDC Ghana Fixed Income Fund”, is an open-ended unit trust offered to investors who are seeking current income on a steady basis, while preserving capital.
The Head of EDC Investments Limited, Mrs Sarah Brainoo Arhin, explained that the objective of the fund was to outperform short- term interest rates being offered on government securities in the country.
 At a media launch in Accra, Mrs Arhin said the fund would be managed by professionals who would pull resources from investors and invest on behalf of the various unit holders.
The fund, she said, would invest in high-quality fixed-income securities such as government and corporate bonds, bankers acceptances, promissory notes, call money and fixed deposits of highly-rated institutions in Ghana.
She explained that the introduction of the product was part of efforts to reduce investor risks that came as a result of a high volatility in the performance of the stock market, the need to give investment options with respect to a change in risk appetite and an ease of transfer of funds from balanced funds to fixed income fund.
Mrs Arhin also added that the fund would give investors diversified options and a regular income, as returns on investments are accrued on a daily basis.
All investors need is a minimum of GH¢50 to invest, and distribution would be made through all Ecobank branches in the country.
Presenting an overview of the operations of the fund, she explained that the minimum investment number was 50 units at an offer price of GH¢1.00 per unit, with EDC Investments Limited being the fund manager and Merchant Bank Limited (Ghana) being the trustees.
However, investors could redeem their returns on investments at any time, giving five days prior notice.
The initial offering period for units of the EDC Ghana Fixed Income Fund would begin from June 18, 2012 and end, officially, on July 13, 2012, but subscriptions would still be received after the official closing.
Mrs Arhin, in an interview with the Daily Graphic after the launch, disclosed that the fund was for people who had a low risk appetite, since there were no equities and stocks involved and the volatility was quite low.
She added that people who were also planning their retirement or were in need of funds over a period of time could also access this fund.
The fund is targeted at pension funds, provident funds, endowment funds, insurance companies amongst others.
The EDC Ghana Fixed Income Fund, she said, was worthy of investment as the fund was highly professional, had efficient liquidity and was highly regulated by the Security and Exchange Commission (SEC) to ensure compliance with investment strategies in the country, while returns on investments were tax exempt.