What is The Nigeria Football Fund?
The Nigeria Football Fund (TNFF) is a fund that will help build and deliver a “Football Economy”, reposition Sports as a national asset through contribution to Nigeria’s GDP and transform football/sports from socio-political tools to profitable business enterprises. It is also a collective investment scheme that seeks to provide sustainable solutions to the challenges hindering the growth and advancement of football and other sports in Nigeria with a primary focus on the development of the Nigeria Premier Football League Clubs. The Nigeria Football Fund (TNFF) is an open-ended SEC-Registered Unit Trust (“Fund”) that allows ease of entry and exit by investors.
What is a Football Economy?
A Football Economy consists of football and other sporting activities measurable in statistical terms as a significant component of the nation’s Gross Domestic Products. It includes Football, Basketball, Boxing, Tennis, Athletics, Golf, & Polo.
How many units are being offered?
What is the Issue Price?
How much can I invest in the Fund?
The minimum initial investment for the offer is N100,000 (i.e. 100,000 units at N1.00 each) while additional investments shall be a minimum of 100,000 units thereafter.
What is the primary objective of TNFF?
The primary objective of the fund is to build a “Football Economy” within the Nigeria sport ecosystem, transform football clubs from socio-political tools to profitable business enterprise and by extension, a national asset; contributing significant percentage to Nigeria’s GDP.
What will TNFF be investing in?
High quality investment–grade instruments involving equities of quoted companies, money market or fixed income instruments, and strategic investment in football/sport sector via securitized lending investments in identified short to medium term “football projects.”
What is the Minimum Holding Period of the Fund?
The Fund Manager is of the view that investors will earn optimal returns from the Fund if investments are held for a minimum period of 90 days. In the event that a Unitholder redeems his investment within the first 90 days, an administrative fee of up to 20% of the income earned on the investment will be charged by the Fund Manager
Will TNFF pay dividends?
Yes, the Fund Manager will be declaring dividends and making distribution to investors, in any financial year where the returns on investment less relevant expenses exceed 10%. The pay-out ratio of such income, where applicable shall not be less than 60% of the net profit. Unit-holders can choose to receive their dividend in cash or reinvest their dividends in new units at the Offer Price.
What is a “Unit Trust”?
A Unit Trust (collective investment scheme) is a pool of funds from several investors who share similar investment objectives and risk appetite. Pooled funds will be invested in diverse financial instruments and professionally managed by fund managers. Each investor becomes a unit holder in the Fund, and the units held confer certain rights of ownership on the investor such as participating in the income derived from the Fund’s investments.
Do I have control over what TNFF invests in?
No. The Fund Manager, GAMTL, makes all the investment decisions based on guidelines set out in the Fund’s Trust Deed.
What are the advantages of investing in Unit Trusts/Mutual Funds?
- Diversification: Diversification involves the mixture of investments within a portfolio and it is used to manage risk. Mutual funds can invest in dozens, hundreds and thousands of different investment securities, making diversification possible by investing in just one fund.
- Accessibility: Mutual funds are easy to buy; even very retail investors can easily open an account within minutes.
- Professional management: Mutual funds have professionals who manage such funds by also researching and analysing investments, thereby saving investors lot of time and energy.
- Liquidity: One of the advantages of mutual funds is that its assets are liquid. Liquidity simply refers to converting your assets to cash with relative ease. For mutual funds, an investor can convert asset to cash by quickly selling it off.
Who monitors the Fund Manager’s activities?
Mutual Funds (collective investment schemes) in Nigeria are regulated by the Securities & Exchange Commission (SEC). TNFF is registered and regulated by SEC, and the Fund is further protected by the Trustee (Radix Trustees Limited), who supervises the activities of the Fund Manager in compliance with the Trust Deed. An independent Custodian (UBA Custodian) also holds and safeguards the assets of the Fund. All these structures create transparency and accountability in the management of the Fund.
What is the procedure for selling or redeeming my investment?
Unit-holders can sell their units in the Fund after the initial 6-months minimum holding period. Unit-holders will be required to redeem units online or complete a Redemption Form and return the proof of investment to the Fund Manager. Once these documents have been verified, the redemption request will be processed within five (5) business days. Minimum permissible holding after partial redemption is N100,000 or such balance as advised by the Manager from time to time.
How do I monitor my investment?
The daily prices are available on our website www.gti.com.ng. Also, as a unit holder of the Fund, you can view your account online by simply logging on to tnff.gti.com.ng
How do I calculate the value of my investment?
At any point in time, the value of your investment = Number of units held X Current Bid Price per unit.
Can I use my holdings in TNFF as collateral for a loan?
Yes, many banks will accept units of the Fund as collateral for bank loans. However, this depends on each bank’s lending policy.
How can I keep track of my investment?
Send us an email requesting for your account statement at gtiamt@gti.com.ng or visit our website www.asset.gti.com.ng or login into our online platform and enter your login details to access your statement on a real time basis. You call also call your relationship officer or call our contact centre with your details and your statement will be send to your registered email with us.
Can I exit my investment at any time?
Yes, you can sell your investment to the Fund at any time. You will be required to complete and execute the redemption form. This document should be returned to the Fund Manager’s office or sent to our email gtiamt@gti.com.ng. The redemption process shall not exceed 5 working days from the date the Fund Manager receives your executed redemption form.
What financial return will I get by investing in TNFF ?
The gross return on investments is forecast to be between 13 – 16% over the forecast period/in the first three years, which is slightly above the computed weighted average yield with other earnings that may arise from short term placements, but generally, the exact return will be a weighted average return of the global investments made by the fund, which will be in line with the prevailing markets rate.
What is the assurance that the projected forecast/ROI will be achieved?
TNFF is rated “?(f)” by Datapro, which means GAMTL is considered to have good investment and risk management capabilities. Baker Tilly Nigeria, a reputable international accounting firm that served as the Reporting Accountant to TNFF also confirmed the proper compilation and accuracy of all financial statements forecasts, and its preparation on a basis consistent with the accounting policies normally adopted by the Company. The quality of the Fund Manager, Trustee, Investment Committee, Custodians and Registrars etc. will also be sustained throughout the forecast period, and even beyond.
What is the target market for TNFF
All participants along the entire value chain of the football industry, including football fans, football regulatory bodies (local & international), professional club owners, professional football players, state governments, corporate clients, religious bodies, institutional clients, football analysts, football promoters, etc.
The Fund equally welcomes subscription from all corporates that are interested in the growth of Nigeria football, particularly from investing public with similar investment objectives and those engaged in the provision of products and allied services that support the development of football.
TNFF is also very suitable for government supports, especially as regards development of one of Nigeria’s instrument of unity and the potential to support government’s drive for revenue diversification.
What are the benefits of investing in TNFF?
- A steady flow of income as yearly payment of dividends would be made to unit holders, from the second year.
- Capital preservation and safety.
- Access to periodic cash income.
- Potential capital appreciation.
- Easy mode of entry and exit.
- Low transaction cost on the fund.
- The dividend is not subjected to Withholding Tax and Value Added Tax. So, the return on investment is tax-free.
- Opportunity to contribute to the growth of Nigeria Football.
- Unit holders to enjoy a discount on Brokerage Commission for trades executed through GTI Securities Limited.
- The use of GTI Investment Note Certificate as collateral for credit facility through GTI Microfinance Bank.
- Free guidance/ assistance in the preparation of wills by the Trust Units.
- Discount on deals structured through GTI Capital Limited