Onome Amuge
Financial services group, United Capital Plc, has launched the United Capital Children Investment Fund, a new mutual fund product specifically designed to facilitate long-term financial planning for children in Nigeria. The initiative, the firm stated, underscores its strategic commitment to enhancing financial literacy, cultivating a savings culture among young Nigerians, and boosting retail participation in the country’s capital market.
Speaking at the official unveiling in Lagos, Peter Ashade, group chief executive officer of United Capital, revealed that the company’s mutual fund assets have experienced an increase of over 200 per cent in the past three years, reaching an aggregate of N650 billion. Ashade attributed the robust growth to United Capital’s innovation-led strategy and unwavering focus on wealth creation across generations.
“In the past three years, we’ve grown from seven to 11 mutual funds, expanding our suite of products to meet evolving investor needs,” Ashade stated. “Our vision is clear—to build and manage wealth that transcends generations. The Children Investment Fund embodies our commitment to the future of Nigerian families and the prosperity of the nation,” he added
Set for a full launch on May 28, 2025, the fund is structured as a naira-denominated, open-ended mutual fund. It provides parents and guardians with a systematic avenue to invest in their children’s future, offering features such as capital appreciation, professional fund management, annual dividends, competitive returns, and flexible access. The fund’s portfolio is strategically diversified across government securities, corporate bonds, equities, and money market instruments.
Ashade underscored the significance of the new product in fostering early financial literacy and empowering young Nigerians for future leadership, entrepreneurship, and broader economic contribution.
“This fund is more than a product, it’s a platform for purpose. Every Nigerian child deserves a structured and empowering financial foundation. Through this fund, we aim to prepare the next generation for a world that rewards early planning and informed financial decisions,” he asserted.
United Capital Asset Management, the subsidiary managing the fund, has solidified its position as Nigeria’s second-largest collective investment scheme manager. It also holds the distinction of being the largest fixed-income fund manager and the second-largest manager of dollar-denominated mutual funds in the country.
“These are not accidental achievements,” Ashade noted, attributing the success to a culture of excellence across our business units, from investment banking and asset management to trusteeship and the emerging consumer finance arm.
Odiri Oginni, managing director/CEO of United Capital Asset Management, provided further insights into the Children Investment Fund’s structure and performance expectations. She described it as a long-term fund designed to remain active beyond 365 days, offering consistent income, liquidity, and long-term capital growth.
“After one year, investors are eligible to receive dividends, which can be reinvested into the fund for compounded returns. The fund aims to deliver an average return of at least 19 per cent, outperforming inflation and optimizing returns through a strategic allocation across asset classes, she explained.
Oginni spoke further on the fund’s balanced approach, focusing on three main asset categories including money market instruments for liquidity, equities for capital appreciation, and fixed-income securities for stability and cash flow.
This diversification, according to the company, is engineered to meet both immediate and future financial needs, such as education, healthcare, or seed capital for entrepreneurial ventures.
“What differentiates this fund is its purpose-built design. It’s not just another savings product. It’s a strategic tool for financial empowerment, tailored specifically for families who want to plan deliberately and effectively for their children’s futures,” the MD stated.
Addressing common investor concerns regarding inflation and market volatility, Oginni said the company has structured the fund to consistently outperform inflation over time.
“Equities, despite their perceived risks, have historically delivered superior long-term returns. Combined with stable fixed income and liquid money market instruments, the fund is positioned to offer security and growth,” she added.
