Q. What is The Stanbic IBTC Ethical Fund?
A.The Stanbic IBTC Ethical Fund (“The Ethical Fund" or "The Fund”) is an openended
mutual fund. The primary objective of The Ethical
Fund is to achieve long–term capital appreciation of its
assets, by investing in a carefully selected portfolio of high
quality equity securities quoted on The Nigerian Stock
Exchange and in other securities approved by the Securities &
Exchange Commission. The Ethical Fund will thus follow a
socially responsible approach to investing and will exclude
investments in Breweries and Tobacco sectors of The
Nigerian Stock Exchange as well as companies whose
activities may be considered harmful to the society.
Q. How does The Stanbic IBTC Ethical Fund work?
A. The primary objective of the Fund is long-term capital
appreciation, which is achieved by investing at least 75% of
the Fund’s assets in equities of blue chip companies listed on
The Nigerian Stock Exchange while retaining a maximum of
25% of its total assets in money market instruments. When
you subscribe to the Fund, you are issued with such number
of units at the prevailing offer price as is equivalent to the
monetary value of your subscription. The Fund is re-valued
at the end of each working day to reflect any changes in the
prices of the underlying stocks. This means that the value of
your units will change from day to day. The aim of the Fund
is to achieve capital appreciation over the long term without
compromising religious beliefs and principles.
Q. Is there a guaranteed “Rate of Return” on an
investment in The Stanbic IBTC Ethical Fund?
A. No. The return on the Fund is dependent on the value of the
publicly quoted stocks it holds. As the Fund Manager has no
control over the price of these stocks, which can and will
fluctuate from time to time, it is impossible to guarantee any
particular rate of return on the investment.
Q. What does The Ethical Fund Invest In?
A. Blue chip companies listed on The Nigerian Stock Exchange
in key sectors. The Ethical Fund will follow a socially
responsible approach to investing and will not invest in
companies operating in the brewery and tobacco sectors,
companies involved in the production of arms, ammunition,
etc, companies involved in the production of and dealing in
narcotic drugs and psychotropic substances, and companies
involved in gambling or any activities which are considered
potentially harmful to civil society.
Q. What are the advantages of investing in The Ethical Fund?
A. - Risk Spreading: As it invests in a basket of top–quality
quoted companies, The Stanbic IBTC Ethical Fund represents a
good risk spreading device
- Wider Access: The opportunity of effectively investing in
equities of more companies than may be possible when
investing directly.
- Flexibility: As the Ethical Fund is open–ended, you
are able to subscribe and redeem at anytime which
provides you with flexibility in relation to your investment
decisions.
- Liquidity: If you are redeeming, you will usually be paid
within one week of the Fund Manager’s receipt of your
redemption form and your unit certificate.
- Expertise: With a minimum of N50,000.00, you can
benefit from Stanbic IBTC’s professional fund management
expertise.
- Investing where your heart lies: The Ethical Fund, by
being socially responsible, ensures that you invest in line
with your beliefs.
Q. What is the procedure for withdrawing/redemption and
how long does it take?
A. The redemption process involves:
-Returning the Fund Certificate to the Fund Manager; and
-Completing a redemption form
When these documents are received, the Unitholders
signature is subject to verification by the Registrar. The
redemption request will usually be processed within 5
working days.
Q. Are there any penalties for withdrawing my funds?
A. A 1% handling charge is payable on any redemption effected
within three (3) months of subscription to the Fund. After
these first 3 months, there is no redemption charge.
Q. Where can I get The Form?
A.Forms are available at all Stanbic IBTC Bank Plc offices and all UPS office in Nigeria at no cost to subscribers. The forms can also be downloaded from our website, www.stanbicibtcassetmanagement.com.
Q. How do I pay for a subscription to The Ethical Fund?
A.By bank draft or cheque payable in any Stanbic IBTC Bank Plc branch or any of SIAML’s offices.Your name, contact address and daytime phone number must be written at the back of the bank draft.
Q. What is the procedure for Foreign Investors to invest?
A. By making a payment into our foreign bank account, the
details of which are given in the prospectus and then
forwarding a copy of the form to Stanbic IBTC Asset Management
Limited. When the subscriber sends a fax or scanned copy of
the form, please note that he/she will not be required to send
the original form.
Q. Can I use my holdings in The Ethical Fund as collateral
for a loan?
A. Yes many banks will accept units of the Fund as collateral for
bank loans. However, this depends on each bank’s lending
policy.
Q. Can I invest for my children and can my club invest?
A. Yes, it is possible to invest for minors, clubs or groups.
Q. How do I calculate the value of my investment?
A. At any time, the value of your investment = Number of units
held X Current Bid Price Per unit (which will be available in
leading Nigerian newspapers or on our website,
www.stanbicibtcassetmanagement.com).
Q. A group of us would like to subscribe jointly. How do
we go about it?
A. You can apply via a joint application (for up to a maximum
of four individuals). Please note that the certificate and any
subsequent distribution or redemption proceeds will be
issued in the names of the applicants who would have to
determine by themselves how to share their joint investment
and any proceeds arising there from.
Q. How is The Ethical Fund different from other Funds?
A. The Ethical Fund is the first mutual fund in Nigeria to follow
a socially responsible approach to investing as it allows
individuals, companies and charities to invest in a way that
does not compromise their religious beliefs and principles.
Q. Do I get a receipt or certificate?
A. Yes. You get both a receipt and a certificate. The
acknowledgement copy of the Purchase Order Form
constitutes your receipt while a unit certificate or statement,
indicating the number of units held by you should be
forwarded to you by the Registrar within approximately 60
days of your subscription to the Fund.
Q. What is the minimum amount that can be invested in
the Fund?
A. N50,000.00
Q. Do I have any control over what companies you invest
in?
A. No. The Fund Manager, Stanbic IBTC Asset Management Limited,
takes all the investment decisions on the Fund’s behalf based
on guidelines set out in the Fund’s Trust Deed.
Q. How do I monitor my investment?
A. The daily prices are available in leading Nigerian newspapers on weekdays as well as on our website, www.stanbicibtcassetmanagement.com. As a
unitholder of The Fund, it is also possible to view your
account online by registering your details on the website.
Q. How long should I stay invested in The Stanbic IBTC Ethical
Fund?
A. The Fund is open-ended and so there is no minimum period
of participation. However, it is usually advised that, as with all
capital market investments, investments in the Fund should be viewed as long-term investments as returns are best
optimized over the long term.
Q. How do I make additional subscription?
A. By the same process as you made your initial subscription that is, filling out a Purchase Order Form and making payment to Stanbic IBTC Bank Plc for the amount that you wish to subscribe for.
Q. Do you pay dividends?
A. Distributions will be paid out of the Fund’s income annually
after the Fund’s AGM. However, investors should note that
the main objective of the Fund is capital appreciation.
Q. Is The Stanbic IBTC Ethical Fund listed on The Nigerian
Stock Exchange?
A. Yes, the Fund is listed in the Memorandum Section of the
daily official list of The Nigerian Stock Exchange.
Q. What is the closing date for The Fund?
A. The Fund is open-ended and therefore has no closing date.
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