An investment banker, Mr Eugene Asiamah-Boadi, has called on the Securities and Exchange Commission (SEC) to facilitate the establishment of a common platform among fund managers to ensure the movement of funds to solve liquidity challenges.
Calling it the Inter-Fund Managers Market (IFMM), Mr Asiamah-Boadi, who is also the Chief Executive Officer of MET Capital Group, wants the platform akin to the inter-bank trading platform which pertains in the banking industry to create an avenue for the availability of short–term funds to meet short-term liquidity obligations.
“The proposed Inter-Fund Managers Market will create a regulated platform where all players can trade openly. That is to say in an instance where a participant requires funds to meet increasing demands for financial instrument, there will be a readily available market with minimal risk (if any) from which borrowing can take place,” Mr Asiamah-Boadi said.
He was speaking at the initial public offering (IPO) of the company’s collective investment scheme, the MET Wealth Scheme and the official inauguration of the two-year-old company.
“Between the time of placing of funds and investment, there will be a bit of gap. And you could make some margins on the fund by giving to fund managers that may be in need of it and then make some margin,” he explained.
Although it was true that funds under management tended to be for the long term, he said, clients also came for funds for their businesses at undetermined times, hence the need for the IFMM to address such liquidity challenges.
Currently, fund managers have devised their own means of addressing such liquidity constraints by keeping some funds to meet those short unbudgeted calls for the funds.
“This will reduce liquidity risks, boost investor confidence and promote healthy relationship among fund managers that will enhance the industry’s image,” Mr Asiamah-Boadi stated.
MET Wealth Scheme is a medium-to-long-term collective investment scheme for individual and corporate investors seeking for a well-diversified growth investment portfolio.
The company will invest the funds in both money market instruments such as treasury bills and equities (shares of companies) listed on the Ghana Stock Exchange.
Mr Asiamah-Boadi explained that in the medium term, the product was aimed at providing growth in investment and income, and also liquidity.
In the long term, the Met Wealth Scheme could serve as the avenue for raising seed capital for the acquisition of residential property through the company’s e-Housing project.
Valued at GH¢0.10 per unit, customers are permitted to purchase a minimum of 200 units or GH¢20 and thereafter multiples of 100 units or GH¢10 in an initial offer which opened on April 30 and will end on May 20, 2015.