The Weston Oil and Gas Fund is an open-ended mutual fund approved, licensed and regulated by the Securities and Exchange Commission, with the aim to achieve growth in income and capital, by investing primarily in a diversified portfolio of listed equities and fixed income instruments.

Mr Rex Kontor, the Chief Executive Officer (CEO) of Weston Capital, said at the launch in Accra on Wednesday that the Fund would support the drive for local participation in the oil and gas industry by helping to build the financial capacity of local companies operating in the sector.

He said the Fund which is Ghana’s first sector-focused fund, would also create an avenue for individuals and corporate entities to participate in the success story of the oil and gas sector.

He said the fund would be providing an initial 500,000 shares at the price of 20 pesewas per share, adding that there would be an expected issuance of additional 250,000,000 shares within the next 11 months.

Mr Kontor called on individuals, associations, corporate institutions, investment clubs, provident and pension funds to invest in the oil and gas fund as there would be superior returns in the short-term, as well as other rewards.

Mr Adu Anane Antwi, the Director General of Security and Exchange Commission, said the introduction of the Weston Oil and Gas Fund marked the birth of specialty funds in the Ghanaian capital market that offered investors an additional avenue to place funds and increase the diversity of the market in terms of products.

He said the fund would focus on investing in majority-owned Ghanaian companies that provide services to the oil and gas industry, as well as targeting companies that provide services such as engineering, transportation and catering to oil producers, refiners and oil marketing companies.

“The Fund’s investment in these companies will enhance the participation of indigenous companies in the oil and gas sector under the local content provisions in the sector by helping them access long-term funding that is relatively cheaper,” he said.

He said the fund would help create avenues for every Ghanaian to invest in the oil and gas sector and share in the prosperity of the industry.

“It is hoped that the fund will position itself to become a specialist institutional financier for all the companies it will invest in, especially the small and medium enterprises, help them to practice good governance in their operations and transform them into companies that will eventually get listed either on the main board of the Ghana Stock Exchange (GSE) or on the Ghana Alternative Exchange of the GSE,” he said.

Mr Antwi urged management and staff of Weston Capital to acquaint themselves with the Securities law that governs the operations of mutual funds in the market.

Mr Senyo Hosi, CEO of Ghana Chamber of Bulk Distribution Companies said there was a huge infrastructural gap in the oil and gas sector and therefore the need for capital injection, especially from local investors.

He, therefore, expressed the hope that the Weston Oil and Gas Fund would help address such challenges in the sector.

GNA

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