Norrenberger to List Islamic and Turbo Funds on Nigerian Exchange, Expanding Access to Shariah-Compliant and Fixed-Income Investments

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Olori Uwem

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Mar 18, 2024
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Norrenberger to List Islamic and Turbo Funds on Nigerian Exchange, Expanding Access to Shariah-Compliant and Fixed-Income Investments

Detailed Breakdown:

Norrenberger, a prominent asset management firm, will introduce its Islamic Fund (NIF) and the Norrenberger Turbo Fund (NTF) on the Nigerian Exchange Limited (NGX) on Tuesday. These listings, approved by the Securities and Exchange Commission (SEC), will expand investment opportunities in collective investment schemes (CIS) for a range of investors.

Norrenberger Islamic Fund (NIF)

The Norrenberger Islamic Fund, launched in May 2021, is aimed at investors seeking Shariah-compliant investment options with a conservative approach to risk. Focusing on fixed-income assets, the NIF allocates approximately 75% of its portfolio to Sukuk bonds, designed for investors looking for steady returns that avoid speculative risks and interest-based transactions.

The fund’s asset distribution includes:

• Sukuk Bonds: 75%

• Mudarabah: 19%

• Ijarah (Leasing): 4%

• Murabaha and Cash: 2%

With an initial minimum investment of 50 units and additional investments of 10 units, the NIF’s total fund size reached N1.04 billion as of July 2024. The fund is benchmarked against the 3-year Federal Government of Nigeria (FGN) Bond, providing investors with an alternative to traditional fixed deposits within Shariah principles.

Norrenberger Turbo Fund (NTF)

Launched in November 2023, the Norrenberger Turbo Fund primarily targets fixed-income securities, with 86.3% of assets in fixed income and 13.3% in money market instruments. As of September 2023, the NTF held a fund size of N1.68 billion, requiring a minimum initial investment of N5,000, and additional investments of N1,000. The Turbo Fund had a year-to-date yield of 13.66%, though it underperformed its benchmark by 5.35%.

With the listing of both funds on the NGX, Norrenberger is set to broaden the range of mutual fund securities on the exchange, bringing the total number to 22. This move underscores the company’s commitment to providing diverse and accessible investment options for Nigerian investors.