Nordea Capital launches income growth fund

Nordea Capital Limited, a licensed investment advisor, has launched an open-ended balance fund known as the Nordea Income Growth Fund (NIGF), consisting of unlimited number of shares.

At an initial cost of 20Gp per share, the fund seeks to preserve and enhance shareholders’ wealth to meet medium to long-term financial goals, while creating liquidity to meet short-term needs. 

The NIGF, which was established on June 19, 2014, would invest primarily in fixed income securities, as well as equity securities listed on all organised stock exchanges, including the Ghana Stock Exchange (GSE) and unlisted equities. 

The initial offering period for shares of the fund began last Wednesday, February 25, 2015 and would end on March 25, 2015, within which period individuals, fund managers and the investing public would have the opportunity to buy into it. 

The Chief Executive Officer of Nordea Capital Ltd, Dr Edem Bart Williams, said at the launch in Accra that in order for any country to develop, the financial industry needed to play an integral role in the mobilisation and allocation of resources from the surplus units to supply the deficit units. 

He said mutual funds served as a platform for investing investors’ funds in the capital and money markets to earn returns for their clients which in turn would create capital for both public and private sector development. 

Money outside banks

Mr Williams said numerous studies had shown that a considerable amount of money was outside the banking system in Ghana and that had created a financing gap often bridged by foreign funds. 

“With a global call for sustainability, the mutual fund markets, which Nordea is joining, seek to provide a channel for raising domestic investment and contribute to an efficient allocation of resources,” he said. 

He also used the occasion to advise the public on the need for investment. 

“This is the time for us to take a second look at our poor savings practice and have a different culture towards savings, especially with NIGF. As a matter of fact, our customer service has been developed to a level that would make it possible to always delight our clients and exceed their expectation,” he said. 

The Deputy Director General of the Securities and Exchange Commission (SEC), Mr Alexander Williams, emphasised the need for investment as it had become critical for individuals and the nation. 

Mutual funds market

He said the mutual funds market was growing steadily and that at the end of 2014, the commission had registered 24 mutual funds and continued to be involved in their management.  

“To maintain proper standards of conduct and acceptable practices, the commission inspects the books of accounts, records, their custodian and fund managers’ investments of mutual funds, post offer, off-site and on-site inspections,” he said. 

Mr Williams challenged managers to, in addition to looking at their returns, use the opportunity to educate the public, especially their subscribers, on the products they had and others on the capital markets to deepen the securities market and engage other people to invest their funds.  

The chairman for the occasion, Dr Ato Essuman, said the financial sector was one of the most important sectors that facilitated the development of a country’s economy through the mobilisation of resources from surplus areas to feed deficit areas.