Pac Asset Management to float N1b initial public offering
PAC Asset Management Limited (PACAM), a subsidiary of Pan African Capital Plc has received regulatory approval to offer for subscription, a balance fund of N1billion units of N1.00 each at par, with minimum subscription of 50,000 units and multiples of 10,000 units thereafter.
The offer, which is payable in full on application, according to the Chairman of the company, Chris Oshiafi opens on February 7, 2015 and closes on March 13, 2015
Speaking at a completion board meeting where all the professional parties to the offer were present, Oshiafi pointed out that the primary objective of the fund was to achieve long-term capital appreciation, as well as providing a stable stream of income to investors by investing the fund’s assets across a mix of equities listed on the Nigerian Stock Exchange (NSE), bonds of investment grade, money market instruments and real estate assets in Nigeria.
The fund, according to him, offers investors an opportunity to own high quality assets in a diversified portfolio with steady returns on investment, estimated at 13.328 per cent in 2014, 16.02 per cent in 2015, 15.86 per cent in 2016 and 15.88 per cent in 2017.
He listed the benefits of the fund to include; outstanding portfolio management, investment in a diversified portfolio, stable and steady returns on investment, redeem investment at any time at the prevailing offer price based on net asset value and indirect holdings in highly valued companies with sustainable financial performance.
“The PANCAM balance fund will be managed by an investment committee made up of experienced and accomplished investments professionals and experts with excellent track record in line with best practices for the benefit of investors. An investment policy framework has been formulated to ensure the objectives of the fund are met at all times.
The Managing Director of the company, David Okwuadigbo , while fielding questions to journalists on the level of protection for investors on the fund, Okwuadigbo said;
“We will adopt a bottom up approach that will examine the fundamentals of securities in which it will invest. It will also conduct due diligence on proposed real estate investments. It will make investments in securities and assets only where it sees significant discount to intrinsic value. The Fund Manager will also follow an active approach in managing its portfolio of shorter-term securities and assets. The Fund will seek to achieve an efficient balance between capital appreciation and income for investors with modest risk appetite.
“If you look at the parties to this fund, you will find that we have diversified parties to the fund with a lot of experience. The trustee to the fund is a very experienced trustee. If you look at the custodian of the fund, very experienced; the receiving bank is very experienced, the reporting accountants very experienced. We have gone out of our way to make sure that the parties to this fund are such that they will give that necessary protection to investors who come into this fund.
“Secondly, the investment committee members are very experienced people. If you look at the names of people on the committee, they have been in the industry with a total cumulative wealth of experience of over 80 years. So, these are people who have experience in managing investment on behalf of a lot of high network individuals and for corporate bodies. With these put together, we are confident that money raised in this fund will be judiciously applied in such a way that the returns to investors will be fare above what has been promised in the prospectus,” he added.