• Thursday, May 23, 2024
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Lotus Capital launches endowment fund for charitable activities

Lotus Capital launches endowment fund for charitable activities

Lotus Capital, an investment management company, has launched its first Securities and Exchange Commission-registered endowment fund in Nigeria.

The launch of ‘The Lotus Waqf (Endowment) Fund’ took place on Thursday in Lagos where the firm said the fund will be invested where investors can get a financial return and also give part of their return for charitable activities.

According to Hajara Adeola, managing director at Lotus Capital, the idea of the fund is a charitable deal that the firm perpetuates.

“Waqf means endowment and one definition is to keep wealth that can give benefit. The idea of the fund is like a social welfare fund which is intending to be like a charity retirement account,” she said.

Ndako Mijindadi, head of investment management and research at Lotus Capital said they will generate income from the fund and use it for charity.

“We are looking at charitable activities in the education sector specifically supporting primary schools in Nigeria, charitable activities in the healthcare sector by supporting primary healthcare institutions,” he said.

He added that the firm is also looking at charitable activities in social empowerment/ economic empowerment and supporting families and less privileged people as well.

“With as little as N5,000, one can invest in the mutual fund. It is an investment vehicle that has been registered with the SEC. The funds will be invested in financial instruments such as SUKUK which are non-interest fixed income instruments. The income that is generated will after that be used to support charity.”

Mijindadi said the social challenges in Nigeria are much and that the company is trying to use an investment vehicle to allow investors to have an opportunity to make an impact and reduce the level of insecurity, under education and also to improve the state of healthcare.

“We also have within the product an opportunity for people to get a financial return while they are also giving part of their return to charity.”