Alternative Capital Partners Limited (ACAP), one of Nigeria’s fund managers has concluded the integration of the Intercontinental Integrity Fund (“IIF”), previously managed by Intercontinental Capital Markets Limited (“ICML”) with the ACAP CanaryGrowth Fund (“ACAP CGF”) presently managed by ACAP.
This follows agreed resolutions with Unitholders at the Extra-Ordinary General Meeting held by ACAP on behalf of the IIF. Units of the IIF have since been transferred into the ACAP CanaryGrowth Fund (“ACAP CGF”).
Sequel to the decision of Access Bank Plc to discontinue operations of non-bank subsidiaries of the now defunct Intercontinental Bank Plc previously the parent company of ICML, an approval was granted by the Securities & Exchange Commission for ICML to wind down operations and transfer the IIF to ACAP CGF.
It is noteworthy that this is the first collective investment scheme merger to have been undertaken by local fund managers in Nigeria. This feat comes twelve months after the firm’s successful acquisition of Oceanic Vintage Fund (now known as ACAP CanaryGrowth Fund) from Oceanic Bank Plc on October 28, 2011.
The ACAP CGF is a SEC-registered collective investment scheme listed on the Nigerian Stock Exchange Memorandum Quotations and commenced in October 2011 after ACAP acquired the Oceanic Vintage Fund from Oceanic Bank Plc and rebranded it ACAP CGF.
The integration of the IIF with the ACAP CGF is expected to further accelerate the fund growth, broaden the fund’s earnings base, and increase opportunities for Unitholders to take advantage of superior returns whilst preserving capital.
The ACAP CGF with a net asset value exceeding N1 billion as at October 9, 2012 has consistently outperformed the Nigerian Stock Exchange All Share Index since it was taken over, delivering over 30% returns on investment as at October 31, 2012.
According to the fund manager, the strong performance of the fund has been attributed to the application of ACAP’s effective asset allocation strategy with an approach that takes advantage of attractive returns in the real estate, fixed income, and money markets while focusing on equities representing the most optimal investment choice with a medium to long term view.
Despite low market penetration, the fund managers highlight key benefits of investing in collective investment schemes such as the reduction in investment risk (capital risk) by diversification, affordability, professional management by experienced fund managers, and flexibility of assets. By investing in a range of equities and other securities, the capital risk is reduced, and return on investment is optimized.
Benefits that can be derived from collective investment schemes cannot be over-emphasized if properly harnessed as it would be the needed catalyst that will not only quicken the pace of development of individual participants but the country as a whole.
ACAP is an independent alternative wealth management company with additional focus on private equity, financial advisory principal investments and sales & trading. ACAP is registered by the Securities & Exchange Commission of Nigeria as a Fund Manager and Corporate Investment Adviser.