Berkshire Asset Management Limited has opened subscriptions for its money market fund, allowing investors to participate with a minimum of N10,000. The fund, an open-ended unit trust, offers two billion units at N1 each. It was unveiled at a ceremony in Lagos, with the signing of its prospectus. The fund is registered with the Securities and Exchange Commission (SEC) and will invest mainly in short-term, investment-grade money market instruments.
The Berkshire Money Market Fund is open to retail investors, high net worth individuals, and domestic and foreign institutional investors. Investors can subscribe for a minimum of 10,000 units, with additional investments in multiples of 5,000 units. The fund's performance will be benchmarked against the average yield on 91-day Nigerian Treasury Bills. Its primary objectives are capital preservation, liquidity, and income generation.
The fund has CFG Africa Trustees Limited as trustee, Rand Merchant Bank Nigeria Limited as custodian, and Cordros Registrars Limited as registrar. It is rated by DataPro Limited and audited by Ijewere & Co. Managing Director and Chief Executive Officer, Adetola Odusote, emphasized the fund's use of technology to pool investments from individuals and channel them into short-term debt instruments.
According to Odusote, the company's investment approach focuses on long-term wealth creation, execution, and capital preservation. He identified technology, partnerships, advocacy, and sustainability as the four pillars of its strategy. Odusote also cited the growth of the middle class, pension assets, and digital investment platforms as factors shaping Nigeria's investment market.
Odusote stressed the importance of investor education to help people distinguish legitimate investment opportunities from scams. Chairman of the firm, Usman Abdulqadir, said the company was established to expand investment options in Nigeria's capital market. He emphasized the firm's focus on transparency, discipline, and risk management.
Rand Merchant Bank noted that Nigeria's mutual fund assets had grown to more than N7.7 trillion, with money market funds accounting for about N4.7 trillion. Despite this growth, a significant share of personal and institutional wealth remains outside professionally managed investment schemes. The bank will safeguard the fund's assets and provide independent oversight to protect investors' interests.
The Chief Compliance Officer, Ogochukwu Mba, said the fund would provide investors with access to high-quality money market instruments while prioritizing liquidity, capital preservation, and prudent risk management within the regulatory framework. The launch of the Berkshire Money Market Fund marks a significant development in Nigeria's investment landscape, offering investors a new opportunity for secure and profitable investments.
Key points
- The fund has a minimum investment requirement of N10,000 and offers two billion units at N1 each.
- The fund's performance will be benchmarked against the average yield on 91-day Nigerian Treasury Bills.
- The fund is registered with the Securities and Exchange Commission (SEC) and focuses on capital preservation, liquidity, and income generation.
