Cordros Asset

Management Ltd.
Investment Basics

Content.
Who We Are
Investment Basics
Mutual Funds

Cordros Money Market Fund

Who We Are.
Cordros Capital Ltd.
Cordros Asset Management Ltd.

Cordros Capital Limited.

Cordros Capital Limited is a leading investment banking firm licensed by both the Nigerian Stock Exchange
(NSE) and the Securities & Exchange Commission (SEC). We are innovative and client-focused, with strong
industry and execution expertise to serve our diverse corporate, institutional and public clients.

Cordros Capital

Investment Banking

Securities

Cordros Asset Management

Financial Advisory

Sales

Portfolio Management

Debt Capital Markets

Research

Mutual Funds

Equity Capital Markets

Stockbroking

Project & Structured Finance

Fixed Income Trading

Cordros Asset Management Limited is the Asset Management subsidiary of Cordros Capital Limited.

Cordros Asset Management Limited.

Cordros Asset Management Limited is a leading asset management firm that is duly registered by the Securities
and Exchange Commission ('SEC') as a Fund/Portfolio Manager. We are the Asset Management subsidiary of

Cordros Capital Limited.

Cordros Asset Management offers different products/services to individuals, private & governmental institutions:

Our Products and Services

Retail
Mutual Funds
(Cordros Money Market Fund)

Institutional

Private (HNIs)

Alternative Investments

Portfolio Management

Liquidity Management

Wealth Management

Mutual Funds
(Cordros Money Market Fund)

Liquidity
Management

Structured Products

Investment Basics.

Why is Investment Important?

What is investment?
An asset or item that is purchased with the hope that it will generate
income or appreciate in the future.
In an economic sense, an investment is the purchase of goods that
are not consumed today but are used in the future to create wealth.
In finance, an investment is a monetary asset purchased with the
idea that the asset will provide income in the future or appreciate and
be sold at a higher price

Basic Terminologies

Investment Objective

Risk

Rate of Return

Diversification

Investment objectives

Generally speaking, investors have a few factors to consider when looking for the right place to invest. Safety of

capital, current income and capital appreciation are factors that should influence an investment decision and will
depend on a person's age, stage/position in life and personal circumstances

Return
The return consists of the income and the capital gains relative on an investment. It is
usually quoted as a percentage.

Total return

Amount of
money
invested

Rate of
return

Investments usually earn higher rates of return than savings tools

Risk

*All investment tools carry some level of risk

Diversification

Diversification is a risk management technique that

mixes a wide variety of investments within a portfolio.
The rationale behind this technique contends that a
portfolio of different kinds of investments will, on
average, yield higher returns and pose a lower risk than
any individual investment found within the portfolio.

Investment vehicles

Fixed Income (Bonds)

Equities

Money Market

Real Estate
Investment
Vehicles

Equities

A stock or any other security representing an ownership

interest.

There are two main types of stock: common and

preferred. Common stock usually entitles the owner to vote
at shareholders' meetings and to receive dividends.
Preferred stock generally does not have voting rights, but
has a higher claim on assets and earnings than the
common shares.

Bonds
A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the
funds for a defined period of time at a fixed interest rate. Bonds are used by companies, municipalities, states and
federal

governments

to

finance

variety

of

projects

and

activities.

Bonds are commonly referred to as fixed-income securities and are one of the three main asset classes, along
with stocks and cash equivalents.
Bond characteristics

Issuer
Corporation
Municipality
Government
International

Priority
Junior or
Subordinated
Senior or
unsubordinated

Coupon Rate
Fixed Income
Floater
Inverse Floater
Zero coupon

Redemption
Features
Callable
Convertible
Puttable

Money Market

A segment of the financial market in which financial

instruments with high liquidity and very short maturities
are traded.
Money market securities consist of negotiable
certificates of deposit (CDs), bankers acceptances,
Treasury bills, commercial paper, municipal notes,
repurchase agreements (repos).

Types of Money Market Instruments

Commercial paper

Bankers acceptance

An unsecured, short-term debt instrument issued by a

corporation, typically for the financing of accounts
receivable, inventories and meeting short-term liabilities.
Maturities on commercial paper rarely range any longer
than 270 days. The debt is usually issued at a discount,
reflecting prevailing market interest rates.

A short-term debt instrument issued by a firm that is

guaranteed by a commercial bank. Banker's acceptances
are issued by firms as part of a commercial transaction.
These instruments are similar to T-Bills and are frequently
used in money market funds. Banker's acceptances are
regularly used financial instruments in international trade.

Treasury bills

Fixed placement

A short-term debt obligation backed by the federal

government and issued by the CBN with a maturity of
less than one year. T-bills have maturities of 91 days, 182
days and 364 days. T-bills are issued through a
competitive bidding process at a discount from face value

A fixed deposit (FD) is a financial instrument provided

which provides investors with a higher rate
of interest than a regular savings account, until the given
maturity date.. It is also known as a term deposit or time
deposit.

Real estate

Real estate investing involves the purchase, ownership,

management, rental and/or sale of real estate for profit.
It is common for investors to own multiple pieces of real estate,
one of which serves as a primary residence, while the others
are used to generate rental income and profits through price
appreciation.

Mutual Fund Definition

Mutual fund is a trust that pools money from a group of

investors (sharing common financial goals) and invest the
money collected into asset classes that match the stated
investment objectives of the scheme

An investment vehicle that is made up of a pool of funds

collected from many investors for the purpose of investing in
securities such as stocks, bonds, money market
instruments and similar assets.

Concept of Mutual Funds

Investors

Returns

Fund

Assets

History of Mutual Funds

Concept of pooling funds/assets for investment purposes has been

around for a long time

Historians are uncertain of the origins of investment funds; some cite the
closed-end investment companies launched in the Netherlands in 1822
by King William I as the first mutual funds,

while others point to a Dutch merchant named Adriaan van Ketwich

whose investment trust created in 1774 may have given the king the
idea.

The next wave of near-mutual funds included an investment trust

launched in Switzerland in 1849, followed by similar vehicles created in
Scotland in the 1880s.

The idea of pooling resources and spreading risk using closed-end

investments soon took root in Great Britain and France, making its way
to the United States in the 1890s.

The creation of the Massachusetts Investors' Trust in Boston,

Massachusetts, heralded the arrival of the modern mutual fund in 1924

Mutual Funds in Nigeria

Mutual funds operations in Nigeria came to the limelight for the first
time during the early 1990s as a result of the rapid growth in the
financial sector induced by the deregulation policy of the mid
1980s.
Mutual funds remained relatively insignificant with limited impact in
the capital market until the recent banking consolidation reinforced
the sector once again.

Mutual Funds are regulated by the Securities and Exchange

Commission, Nigeria

There are currently forty four (58) registered/approved Unit Trust

Schemes (UTS) in operation in Nigeria.

12 Equity Based Funds

7 Money Market Funds
6Bond Funds
9 Fixed Income
5 Ethical Funds
15 Mixed/Balanced Funds
3 Real Estate Investment Trust Schemes

Types of Mutual Funds

Types of
Mutual Fund

By
Constitution

By Asset
Class

By
Investment
Objective

Close-ended

Equity Funds

Growth

Open-ended

Debt Funds

Income

Interval

Hybrid Funds

Balanced

Money
Market Funds

Types of Mutual Funds (Contd)

By Constitution/Structure
Open Ended Fund: A type of mutual fund that does not
have restrictions on the amount of shares the fund will
issue. If demand is high enough, the fund will continue to
issue shares no matter how many investors there are.
Open-end funds also buy back shares when investors
wish to sell.
Interval Funds: A fund that combines the features of
open-ended and closed-ended schemes, making the
fund open for sale or redemption during pre-determined
intervals.
Closed-end Fund: is a publicly traded investment
company that raises a fixed amount of capital through an
initial public offering (IPO). The fund is then structured,
listed and traded like a stock on the stock exchange. It is
also known as closed-end investment or closed-end
mutual fund.

By Asset Class
Equity Fund: A mutual fund that invests principally in stocks. It can
be actively or passively (index fund) managed.

Money Market Fund: An investment fund that holds the objective to

earn interest for shareholders while maintaining a net asset value (NAV)
of N100 per share. Portfolios are comprised of short-term (less than
one year) securities representing high-quality, liquid debt and monetary
instruments.

Bond Fund: A fund invested primarily in bonds and other debt

instruments. The exact type of debt the fund invests in will depend on
its focus, but investments may include government, corporate,
municipal and convertible bonds, along with other debt securities like
mortgage-backed securities

Hybrid Fund: A category of mutual fund that is characterized by

portfolio that is made up of a mix of stocks and bonds, which can vary
proportionally over time or remain fixed

Types of Mutual Funds (Contd)

By Investment Objective
Growth fund: A growth fund's primary objective is capital
appreciation over the medium to long term. These funds may
invest in both well-established companies with above
average growth potential and/or in fast-growing industries
such as technology and healthcare
Income fund: An Income fund focuses primarily on income
typically as opposed to capital appreciation. Such funds hold
a variety of government, municipal and corporate debt
obligations, preferred stock, money market instruments, and
dividend-paying stocks from equity
Balanced fund: balanced fund is geared toward investors
who are looking for a mixture of safety, income and modest
capital appreciation.

Fund Structure (Regulatory)

SEC
Securities &
Exchange
Commission

Reporting

Reporting

Reporting

Underlying Assets

Cordros Mutual Funds.

Cordros Money Market Fund

Cordros Money Market fund.

Fund Name

Cordros Asset Management Money Market Fund

Minimum Advised Investment Period

2 years

Target Fund Size

N1,000,000,000.00

Minimum Investment

Initial: 100 units at N100 per unit

Subsequent: multiples of 50 units at N100 per unit

Minimum Investible Amount

Initial: N10,000.00
Subsequent: N5,000.00

Minimum Holding Period

30 days

Fund Type

Open-ended

Investment Objective

To provide capital stability, liquidity, and diversification while providing a competitive

return.

Investible Securities

Money Market Instruments (e.g. Certificate of Deposits, Commercial Papers, Fixed

Deposits, Treasury Bills,) and cash.

Maximum Days For processing Liquidation

3-5 working Days

Benefits of Cordros Money Market fund.

The Fund is particularly suitable for investors who seek:
A short to medium term investment horizon;
Safety and preservation of capital;
liquidity and regular stream of income as the fund is structured to pay dividend on a quarterly

basis.
Are you looking for an avenue for
financial planning and freedom
before and after graduation?
Think Cordros Money Market Fund

What are you saving for?

(Higher Education, retirement, vacations)

Benefits of Cordros Money Market fund.

Are you tired of having a regular
savings account with no returns?

Think Cordros Money Market Fund

Are you looking for a reliable vehicle
for market access and investment
returns?

Think Cordros Money Market Fund

Why Choose Us.

Experienced and
knowledgeable

Experienced, stable, and dedicated team.

We are skilled in managing investment across market cycles.

Highly-reputable

Our reputation and dealings with leading investment companies ensure your
investments are in the best hands.

Strong research capabilities

Ability to leverage on a team of research analysts, with strong capabilities in

equity, fixed income, money markets and real estate asset classes.

Asset specialist to enhance

strategic decision-making

Our product specialists are engaged in the idea generation process

We encourage innovative ideas and fresh thinking.

Diverse product range

We offer a comprehensive and competitive range off-the-shelf and tailored

products and services to help clients achieve their investment goals.

Risk management and return

generation

Our aim is to pursue the best possible returns while reducing risk.

Our Philosophy
We employ
quantitative

and qualitative
research and
analysis

to highlight the
best investment
opportunities

Contact Us.
Address: 70 Norman Williams Street, Off Keffi Street , Ikoyi, Lagos
Web Address: www.cordros.com

Olafisayo Ogunbiyi-Badaru

Gbolahan Aina

Omotola Olusoga

olafisayo.ogunbiyi-badaru@cordros.com

adegbolahan.aina@cordros.com

omotola.olusoga@cordros.com

0816 3481 461

0803 3617 739

08054008094

This document has been issued and approved by Cordros Asset Management (Cordros) and is based on information from various sources that we believe are reliable. However, this document is for
information purposes only. Cordros shall not be liable for any reliance on statements contained herein, by a third party to whom this proposal is not addressed to Cordros and/or a connected company may
or may not have a relationship with any of the entities mentioned in this document for which it has received or may receive in the future fees or other compensation. Cordros is regulated by the Securities
and Exchange Commission to conduct investment business in Nigeria.
Cordros Asset Management Limited.

Thank You.