Modupe Gbadeyanka
By Modupe Gbadeyanka
SIAML Pension ETF 40 has been admitted into the daily official list of the Nigerian Stock Exchange (NSE).
Business Post reports that the NSE accepted 5.97 million units of SIAML Pension ETF 40 at a par value of NGN100 per unit.
It was gathered that the issuer appointed Stanbic IBTC Securities Limited (SISL) as Liquidity Provider to facilitate secondary market liquidity on the product.
The NSE Pension 40 Index was launched in July 2015 and it contains top 40 companies in terms of market capitalization and liquidity that conform to PENCOM regulations on investment of pension fund assets in listed equities.
The NSE Pension 40 Index is a total return index rebalanced once in a year (on the first business day in January) and so investments products replicating it are expected to record lower transaction/rebalancing cost therefore minimizing tracking error.
SIAML Pension ETF 40- the first Exchange Traded Fund (ETF) to replicate our NSE Pension 40 Index (one of the thematic indices) is designed to track the price/yield performance of the Index.
Speaking at the facts behind the listings presentation of SIAML Pension ETF 40, the Chief Executive Officer of the NSE, Mr Oscar Onyema, congratulated the board and management of Stanbic IBTC Asset Management Limited (SIAML) on the successful IPO of their second ETF, which recorded about 60 percent subscription.
Mr Onyema further applauded the entire team for maintaining her market position in Nigeria’s Asset Management Industry with an enviable track record of excellence and competence.
“The listing of SIAML Pension ETF 40 which marks our first listing in 2017, lends credence to our commitment to championing and advocating for growth of the ETF market in Nigeria. With diversified investor base, our market offers issuers and their products access to capital and visibility whilst delivering transparency and liquidity to investors,” the NSE boss said.
Mr Onyema pledged that the NSE will continue its collaboration with market stakeholders- regulators, dealing member firms, fund managers, issuing houses and others to “collectively promote increased awareness and education on ETFs amongst the investor community in Nigeria.”
“As we deliver on several market development initiatives in 2017, we aim to become the African Exchange of choice for issuers and investors by enhancing regulation, transparency, liquidity and accessibility to capital and a wide product range,” he said.
The ETF market in Nigeria was launched in December 2011 on the NSE with cross listing of Newgold ETF and today, it has become the second largest (and fastest growing) ETF market in Africa boasting of additional eight indigenous ETFs with AUM totalling about N5.4bn and over 200 percent cumulative growth in turnover over the last four years; a feat we have all achieved, together through unwavering diligence and determination to grow this segment of its market.
