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Greenwich Alpha ETF Fund


What is an ETF?

An Exchange Traded Fund (“ETF”) is an investment instrument that tracks an index, a basket of assets, or a commodity, but trades like regular shares on a stock exchange.

What is the Greenwich Alpha ETF Fund?
The Greenwich Alpha ETF Fund (“Greenwich Alpha”) is an open-ended ETF which tracks the “NSE 30 Index”; an index which constitutes 30 of the most liquid and capitalized stocks trading on the Nigerian Stock Exchange (“NSE”). Greenwich Alpha is designed to enable investors obtain market exposure to the securities of the constituent companies of the NSE 30 index and to replicate the performance of the index.

How can l track my investment in the Greenwich Alpha ETF?
The Greenwich Alpha ETF will be listed on the Nigeria Stock Exchange and prices can be tracked daily. Also, the balance after a purchase or sale will reflect in the CSCS accounts of individual investors just like regular shares.

Would the Greenwich Alpha always have all the 30 stocks in the NSE 30 index?

The Greenwich Alpha will replicate the constituents of the NSE 30 Index as closely as possible. However, if it is impossible to purchase all the securities in the same weighting as the index, the Fund may utilize a representative sampling strategy; which involves holding a sample of securities with similar market capitalization and liquidity weightings as the NSE 30 index. The Fund Manager may also elect to purchase securities not in the Underlying Index, which the Fund Manager believes are appropriate to substitute for certain securities which are in the index.

How can an investor invest in the ETF after the offer period?

Units of Fund can be purchased and sold on the floor of the Nigerian Stock Exchange through a registered stockbroker, just as with any listed on the Nigerian Stock Exchange.

Who are ETFs for?

  • Investors looking for diversification through a single security
  • Local institutional investors, foreign investors and individuals with an appetite for Nigerian equities and looking to achieve a level of diversification that would otherwise be time consuming and expensive to attain;
  • Small to medium size investors looking to avoid complexities, associated costs and risks of Investing directly on the NSE;
  • Investors who require liquidity; and
  • Investors who wish to reduce concentration risk by diversifying their investments
  • Investors who are looking for benchmark return at a minimal cost.
  • Passive investors who may not have time to actively monitor the market.

Is there a guaranteed rate of return on Investment in the ETF?

No. The Greenwich Alpha does not guarantee returns. The performance of the Fund is function of the performance of the index it tracks-in this case the NSE 30.

Can I use my ETF’s as a collateral for a loan with a financial institution?

Yes. Just like shares, your units of the Greenwich Alpha can be used as a collateral and is transferable.

Ready to invest, please click Here to begin

You can also download the ETF prospectus Here

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