NSE partners market stakeholders to launch Mutual Funds Trading
The Nigerian Stock Exchange has partnered with three capital market stakeholders: Fund Managers Association of Nigeria (FMAN), Association of Stockbroking House of Nigeria and the Central Securities Clearing System (CSCS) PLC to launch the Exchange’s Mutual Fund Trading and Distribution.
According to the market regulator, Mutual Fund is a pool of funds brought together by a professional fund manager from several investors to invest in selected underlying securities, with seamless interaction between NSE, CSCS Plc, Fund managers and Brokers Dealers.
Speaking at the launch in Lagos, Head of Listing Business Division, Olumide Bolumole said, “We are delighted to provide a solution that will enhance visibility for the listed mutual funds and promote financial inclusion, while stimulating retail investors participation in our market. This reinforces our commitment to provide market professionals, issuers, fund managers and investors with a reliable, efficient and an adaptable exchange hub in Africa, to save and to access capital.”
He also noted that through the Mutual Funds Trading, investors can dive in and pool funds to increase returns and cut risks.
“Through this platform, investors can pool funds into chosen basket of securities which have proven to be veritable means to optmise returns and reduce risks,” Bolumole added.
President of Fund Managers Association of Nigeria, Dayo Obisan also echoed Bolumole’s excitement which the launch of the platform brings to the market.
“It is a great pleasure to see the platform launched and become operational. One of the initiative in the FMAN 5-year road map was to deveo and implement a nationwide distribution, trading platform for mutual funds. Over the past 18 months, the NSE, CSCS Plc, ASHON and the Securities and Exchange Commission (SEC) worked closo with FMAN to attain this great milestone,” Obisan said.
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