Note holders in The Nigeria Energy Sector Fund (NESF), a closed-end investment vehicle quoted on the Nigerian Stock Exchange (NSE) are to receive a coupon payment of N102 per note for the financial year ended March 31, 2017.
The coupon payment represents an increase of 100percent over the N51 paid in the previous year. The coupon payment also translates to a yield of 18.47percent at the current market price of N552.20 per Note. This has been paid to the Noteholders whose names appeared on the Fund Managers register on the close of business on February 16th, 2018. The coupon was paid out on February 23, 2018.
While reviewing the performance of the Fund during the period, Omololu Ajediran, the Acting Managing Director of SCM Capital Asset Management Limited noted that the Fund`s gross earnings increased by 162.87percent to N203.52 million in 2017 from N77.42 million recorded in the previous period of 2016. The profitability also grew by 99.26percent from N50.9 million in March 2016 to N101.98 million in March 2017.
He attributed the significant growth in the top and bottom-lines to timely switch of investment strategy amongst various asset classes within the Trust Deed of the Fund. According to him “we were also able to optimize return from the equities market as against the challenges in the oil and gas sector in the previous year and the prevalent of bearish market mood occasioned by weak macroeconomic environment”.
Also commenting earlier on the impressive returns achieved by the Fund, Gaventa Otono, the Group Managing Director of SCM Capital said “The Fund since inception has continued to witness growth and deliver value to Noteholders in terms of coupon payment that is second to none in the industry”. According to him “We kept our investment philosophy and adopted sound methodology to continue to sustain the Fund`s performance. The challenge of the sector notwithstanding “We will continue to adopt effective, flexible and forward looking asset allocation strategies to mitigate risks and deliver value to Noteholders”
Gaventa re-emphasised the determination to take advantage of emerging opportunities in the market as the economic recovery gathers momentum. He urged investors driven by passion to earn regular stream of income to invest in the Nigeria Energy Sector Fund (NESF) for exceptional return.
The Fund is constituted under a Trust Deed with United Capital Trustees Limited as the Trustees and UBA Global Services Limited as the Custodian to the Fund. The Fund which was created by Nigeria Energy Sector Fund Plc (“the Sponsor”) has SCM Capital as the Fund Manager. The Fund was created to mobilize investible funds from individuals and corporate entities both domestic and foreign for investment in the Energy sector of the Nigerian economy.
SCM Capital Asset Management offers a broad range of asset management products including Financial Planning, Portfolio Management and Investment Advisory. We also provide our clients with customised portfolio management services that are specific to circumstances and future expectation through engagement and rigorous analysis to achieve desired goals and objectives.
