With a minimum of $500, investors seeking to hedge their savings against currency risk can invest in Vantage Dollar Fund (VDF)managed by Investment One Funds Management Ltd and would earn a steady return on their investment.
The pool of funds will be invested in Nigerian originated dollar-denominated assets including sovereign and corporates, the firm said.
Since launched in 2018, the Vantage Dollar Fund has awarded investors good value for their money both in terms of interest income and capital appreciation.
As of 11th June 2020, the fund recorded a gain of 17.8 percent after its unit price rose to N472.5 from the N401.02 it closed in 2019, according to data from the Securities and Exchange Commission(SEC).
The Dollar Fund is an open ended fund, meaning investors can continuously make additional investment in multiples of $1.00 to their already subscribed units.
It has a minimum holding period of 180 days and a redemption cycle of T+5 (payment is made not later than five business days after an investor submits a redemption form).
The fund is regulated by the Securities and Exchange Commission (SEC) and in accordance with regulation, it has an independent trustee and custodian.
As a petrodollar economy, Nigeria is susceptible to weakness in global oil prices which has continually impacted the country’s exchange rate and brings to the table conversations around devaluation of the local currency as was the case in 2016 when the local currency devaluation led to a more than 50 percent decline in the dollar value of investors naira assets.
Diversification of investment portfolio between naira and dollar assets has proven to be a superior investment strategy as it helps in saving to further dollar obligations such as vacation, schooling amongst others.
The Vantage Dollar Fund by the financial services firm, is one of such funds that seeks to protect investors’ assets against currency risk, as the investment is dollar-denominated.
For flexibility, the firm noted that investors who might have need for their monies within the minimum holding period, to be allowed redemption during the minimum holding period subject to a 15 percent charge on the positive total return on the units being redeemed on the day of redemption.
According to Investment One, who is the fund manager, every unit holder shall be entitled to receive an electronic certificate for the number of units purchased by such unit holder, and this electronic certificate shall be conclusive evidence of the number of units held.
These investors are sure of enjoying numerous benefits including capital appreciation, competitive returns diversified portfolio; and regular and steady income stream, that is independent of policy changes in the economy.