The securities industry of Ghana continues to be plagued with fewer asset classes from which investors can choose from.
To help mitigate this problem, the promoters of EcoCapital Prime Fund set out to introduce this new mutual fund into the Ghanaian market that will give investors one more investment destination to consider and presumably the ideal security for short term investors whose major objective is to balance liquidity with profitability.
The EcoCapital Prime Fund is a money market mutual fund designed to help investors interested in short term investment that provide modest returns with adequate liquidity to meet their investment needs.
On 23rd April, 2019 the mutual fund was approved and the directors authorized to offer shares in the mutual fund to the public within an Initial Public Offering (IPO) period from 30th July, 2019 to 19th August, 2019 by the Securities and Exchange Commission.
The initial offer to the public to issue of a minimum of one million shares (1,000,000.00) at fifty Ghana pesewas (GHS 0.50) per share to enable the fund raise a minimum of five hundred thousand Ghana Cedis (GHS 500,000.00).
An event to launch the EcoCapital Prime Fund and Offer the mutual fund to the public was held on Monday, 29th July 2019, at MJ Grand Hotel in East Legon, Accra which was attended by the Board of Directors of the fund, the Fund Manager (EcoCapital Investment Management Limited), the Custodian (Guaranty Trust Bank Ghana Ltd), some Securities Industry players and the media.
The fund was unveiled as a money market mutual fund that will invest in Government of Ghana Treasuries, Obligations of Banks, Commercial Paper, Certificates of deposit and other short term obligations of Ghanaian and foreign entities, with the objective of maximizing current income to the extent consistent with the preservation of capital and maintenance of liquidity to meet short term need whiles enhancing shareholders’ wealth to meet medium to long term financial goals.
Speaking at the event which was chaired by Dr. Hillar Addo board chairman of the fund, assured all prospective investors of the resolve of the board to ensure a good balance between risk and return was pursued by the fund at all times.
He again added that the board will ensure absolute compliance to legal and regulatory frameworks and guarantee that the fund manager and custodian execute their duties with legal conformity in mind.
Madam Solace Fiadjoe, Head of Financial Institutions Group at GT Bank pledged the bank’s commitment to exercise an independent oversight over the actual assets of the Fund and to ensure its strict compliance to approved investment practices.
Chief Executive Officer of EcoCapital Investment Management Limited, Mr Dela Agbo, expressed gratitude for being part of such an event and committed the fund managers to the provision of professional investment advice backed by solid research and adequate due diligence.
Interest in the fund was in shares and individual and institutional investors were admonished to take part in this great investment opportunity.
The Initial Public Offer for the EcoCapital Prime Fund was duly opened and investments into the fund is be made at any branch of the receiving agent GT Bank (Ghana) Limited and EcoCapital Investment Management Limited.