From left Fatai Yussuff (Head of Marketing FSL Asset Management, Tola Odukoya (CEO FSL Asset Management) Sunday Kadiri (Funds Manager FSL Asset Management) at the Launch of their commodities and balanced funds in Lagos recently.
FSL Asset Management has launched a Commodity Fund designed to channel non-bank capital into Nigeria’s agricultural value chain while giving investors regulated exposure to commodity-linked assets.
The new fund, unveiled at a media briefing in Lagos, is structured as an open-ended unit trust scheme regulated by the Securities and Exchange Commission (SEC). It will invest primarily in securitised agricultural contracts, commercial papers issued by agricultural companies and exchange-traded commodities listed on registered platforms, including the AFEX Commodities Exchange and Lagos Commodities Exchange.
The launch comes as agricultural businesses continue to face significant financing constraints, despite agriculture accounting for roughly 25 to 30 percent of Nigeria’s GDP, according to Adetola Odukoya, FSL Asset Management CEO.
Odukoya said the fund was created to address the dual challenge of providing relatively cheaper capital to patients, agricultural producers, and processors while offering investors a regulated alternative to the high-risk commodity investment schemes that have proliferated in the country.
“With this commodities fund, we are creating a transparent, SEC-regulated gateway that allows investors to earn competitive real returns from high-growth agricultural assets while providing…
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Read Full Article by Chinwe Michael at businessday.ng
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