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Greenwich Trust Launches Nigerian ETF

The Nigerian Stock Exchange listed the Greenwich Alpha ETF by Greenwich Asset Management (a subsidiary of Greenwich Trust Limited) following its Initial Public Offering (IPO) on Monday 19th August.

The Greenwich Alpha ETF were listed on the exchange at N100 after the IPO. The ETF aims to track the NSE 30 Index, which contains the 30 most liquid stocks trading on the exchange and is designed to provide access for investors to these companies. The largest constituents in the index by market capitalisation (as of 20th August 2019) include Dangote Cement, Nestle Nigeria and Guaranty Trust Bank.

NSE 30 Index

Companies and constituents in the NSE 30 Index (source: uk.investing.com)

Dayo Obisan, the Managing Director at Greenwich Asset Management, said: “The Greenwich Alpha ETF Fund is designed for and offered to investors seeking exposure to the Nigerian equities market, particularly to the constituents of the NSE-30 index. It offers the full benefits of diversification through a single transaction thereby reducing associated transaction cost and helping investors spread their risk. We will continue to encourage retail and institutional investment in this Fund based on its potentials”.

Jude Chiemeka, Head of Trading Business on the Nigerian Stock Exchange, also expressed his delight at the listing on the exchange: “We are delighted to welcome Greenwich Asset Management Limited to our growing list of ETF providers. Globally, ETFs continue to make an impact as effective tools for accessing the market and diversifying investments.

As the leading stock exchange for listing and trading ETFs in West Africa, we will continue to lead innovation in the market as well as support the issuance of products and investment vehicles that meet the objectives of investors.

At the NSE, we operate an efficient, orderly and transparent market based on cutting edge technology, to support product development efforts for the benefit of all investors.

We remain resolute in our commitment to partnering with all market stakeholders, to continue to build and develop the Nigerian capital market while offering a wide range of investment vehicles for all investors.”

Since the beginning of the year to the end of July, Nigeria’s All-Share Index was ranked as the third worst performing Frontier Market, but there has been positive news for the country recently in the form of MTN Communications being included in the MSCI Frontier Markets Index.

The launch of the Greenwich Alpha ETF will see an increase in the number of ETFs that focus on tracking the performance of Nigerian companies, including the more popular and larger Global X Nigeria ETF. A full list of Frontier Market ETFs can be found here.

About James Eugene (94 Articles)
Interested in many (maybe too many) things. Football, Politics and Emerging & Frontier Markets, to name a few. Twitter: @James_Eugene

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