The Nigerian capital market has been deepened with the launching of N3 billion Halal Commodities Fund by Marble Halal Commodities Fund (MHCF).
A new commodities Fund, domiciled in the agro-economic and extractive sector, has been launched as the first commodities Fund to be approved by the Securities and Exchange Commission (SEC).
Commodity funds invest in raw materials or primary agricultural products, known as commodities. These funds invest in precious metals, such as gold and silver, energy resources, such as oil and natural gas, and agricultural goods, such as wheat. Commodity funds may also invest in the companies that produce these commodities.
The new asset class was designed not only to impact the Nigerian financial market, but the entire economic sector, most especially but not limited to agriculture. industry. The initial N3 billion Fund consists of 30 million units at N100 per Unit at par. But it can be increased subject to the approval of SEC.
The Fund which primarily invests in commodities-linked instruments, operates based on the principles of Shari’ah and as such only invests in halal -certified investment instruments.
Speaking at the launching ceremony of the Fund recently in Lagos, the executive commissioner for Operations, Securities and Exchange Commission (SEC), Dayo Obisan, noted that the launch of the fund would play a key role in the attainment of the 2015 to 2025 Nigerian Capital Market Master Plan of the Commission.
Obisan, noted that one of the cardinal points was for 25 per cent of the market capitalization to come from non-interest areas such as Marble Halal Commodities Fund.
The chief executive officer, Marble Capital Limited, Akeem Oyewale, said the fund would enhance product diversification in the Nigerian economy while preventing loss of investments to Ponzi schemes and funny crowd funding programmes.
“The main objective of the fund is to provide investors with income diversification and generate returns by investing in diverse halal- compliant instruments. In addition, the fund would also contribute to the economic growth of the country. We believe that we will be able to formalise a lot of non-formal agricultural investments and that would allow investors to scale investments opportunities.
“The Marble Halal Commodities Fund is open to both retail and institutional investors and compliant with the PenCom guidelines for mutual fund investments. The minimum amount required for investment is N50,000,” said Oyewale.
The chairman, Marble Capital Limited, Alhaji Ali Ango, said the fund would be invested in a series of commodities-linked instruments, including gold and precious metals among others.
Meanwhile, recently, the director-general of SEC, Mr. Lamido Yuguda stated that the SEC is very passionate about the commodities sector as it has enormous benefits for the economy of the nation.
According to him, one of the key pillars of the Capital market Master Plan is the development of the commodities ecosystem which gives our nation the opportunity to diversify both the capital market and the economy and also create more products.
Speaking earlier, managing director of Lagos Commodities and Futures Exchange (LFCE), Mr. Akin Akeredolu-Ale said the commodities exchanges are interested in exploring avenues for investing pension funds in the capital market.
He expressed his joy that the SEC is spearheading the Investment and Securities Bill (ISB) to further boost the utilisation of pensions funds in the market adding that if pension funds are not reflated, inflation would keep affecting it.
“The primary part of our economic raw materials in crude oil, if you do not capitalise the primary sector, the manufacturing sector will suffer, same as the service sector. SEC has made provisions for the PFAs to invest in the commodities sector and this is expected to catalyse our economy and spur growth” he said.
Akeredolu-Ale reassured that the reflation of the assets under management is going to benefit people that have their assets as globally pension assets are used to stimulate economies adding that the nation’s economy needs to be activated to create opportunities for pension assets to participate in the exchanges.
He therefore urged Pencom to look into its rules and encourage PFAs to develop and interest in investing in commodity assets on the commodities exchanges like LFCE.
