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Tag: Lotus Capital

  • Lotus Capital lists N1.49b fixed income fund on NSE

    Lotus Capital Halal Investments Limited has listed its N1.49 billion fixed income fund on the memorandum board of the Nigerian Stock Exchange (NSE), paving the way for the trading of the units on the Exchange.

    A total of 1.487 million units of Lotus Capital Fixed Income Fund of N1, 000 each were listed by way of introduction on the memorandum board of the Exchange on June 21. The NSE Quotation Committee had earlier approved the listing of the Lotus Capital Fixed Income Fund. The Lotus Capital Fixed Income Funds are approved by Lotus Capital’s Shari’ah Advisory Board as well as the Securities and Exchange Commission (SEC).

    The new listing has increased the mutual funds listed on the memorandum quotation of the Exchange to 47, including Lotus Capital Halal Investment Fund, another mutual fund under the management of Lotus Capital Halal Investments Limited.

    Lotus Capital Halal Investments Limited Managing Director, Mrs Hajara Adeola, reiterated the company’s commitment to providing investors with alternative investment opportunities in line with their beliefs and ethics.

    The Lotus Capital Fixed Income Fund is an open-ended collective investment scheme, which invests strictly in Shari’ah-compliant fixed income instruments and contracts such as sovereign and sub-sovereign sukuk, corporate sukuk, Shari’ah-compliant fixed term investments, murabaha or cost-plus financing contracts and ijarah or lease contracts.

    Based on the Shari’ah, this implies the Fund’s investments must be ethical and it must not invest in interest bearing instruments such as treasury bills, conventional bonds or conventional bank deposits.

    Also, the Fund will not invest in the stock market in order to avoid the associated volatility. The Fund intends to distribute 80 per cent of its returns to investors on a quarterly basis.

    According to the fund manager, the Lotus Capital Fixed Income Fund seeks to attract investors interested in low risk, liquidity, capital preservation, shari’ah-compliant investment, competitive returns,     portfolio diversification and a regular income stream

    The Lotus Capital Fixed Income Fund projects a return on investment of 15 per cent for 2018. However, the Fund’s returns will be determined by the performance of the underlying assets and therefore, may deviate significantly from the forecast.

     

  • Lotus Capital to list N1.49b fixed income fund

    LOTUS Capital Halal Investments Limited has received regulatory approval to list its N1.49 billion fixed income fund on the memorandum board of the Nigerian Stock Exchange (NSE).

    A total of 1.487 million units of Lotus Capital Fixed Income Fund of N1, 000 each will be listed by way of introduction on the memorandum board of the Exchange. The Quotation Committee of the NSE has approved the listing of the Lotus Capital Fixed Income Fund, a process that will pave way for the trading of the units on the Exchange.

    The Lotus Capital Fixed Income Fund had earlier been approved by Lotus Capital’s Shari’ah Advisory Board as well as the Securities and Exchange Commission (SEC).

    There are 46 mutual funds already listed on the memorandum quotation of the Exchange including Lotus Capital Halal Investment Fund, another mutual fund under the management of Lotus Capital Halal Investments Limited.

    The Lotus Capital Fixed Income Fund is an open-ended collective investment scheme which invests strictly in Shari’ah-compliant fixed income instruments and contracts such as sovereign and sub-sovereign sukuk, corporate sukuk, Shari’ah-compliant fixed term investments, murabaha or cost-plus financing contracts and ijarah or lease contracts.

    Based on the Shari’ah, this implies the Fund’s investments must be ethical and it must not invest in interest bearing instruments such as treasury bills, conventional bonds or conventional bank deposits.

    Also, the Fund will also not invest in the stock market in order to avoid the associated volatility. The Fund intends to distribute 80 per cent of its returns to investors on a quarterly basis

    According to the fund manager, the Lotus Capital Fixed Income Fund seeks to attract investors interested in low risk, liquidity, capital preservation, shari’ah-compliant investment, competitive returns,     portfolio diversification and a regular income stream

    The Lotus Capital Fixed Income Fund projects a return on investment of 15 per cent for 2018. However, the Fund’s returns will be determined by the performance of the underlying assets and therefore, may deviate significantly from the forecast.

  • Lotus Capital to list N1.49b fixed income fund

    Lotus Capital Halal Investments Limited has been given regulatory nod to list its N1.49 billion fixed income fund on the memorandum board of the Nigerian Stock Exchange (NSE).

    A total of 1.487 million units of Lotus Capital Fixed Income Fund of N1, 000 each will be listed by way of introduction on the memorandum board of the Exchange. The Quotation Committee of the NSE has approved the listing of the Lotus Capital Fixed Income Fund, a process that will pave way for the trading of the units on the Exchange.

    The Lotus Capital Fixed Income Fund had earlier been approved by Lotus Capital’s Shari’ah Advisory Board as well as the Securities and Exchange Commission (SEC).

    There are 46 mutual funds already listed on the memorandum quotation of the Exchange, including Lotus Capital Halal Investment Fund, another mutual fund under the management of Lotus Capital Halal Investments Limited.

    The Lotus Capital Fixed Income Fund is an open-ended collective investment scheme, which invests strictly in Shari’ah-compliant fixed income instruments and contracts such as sovereign and sub-sovereign sukuk, corporate sukuk, shari’ah-compliant fixed term investments, murabaha or cost-plus financing contracts and ijarah or lease contracts.

    Based on the Shari’ah, it implies that the Fund’s investments must be ethical and must not invest in interest bearing instruments such as treasury bills, conventional bonds or conventional bank deposits.

    Also, the Fund will also not invest in the stock market in order to avoid the associated volatility. The Fund intends to distribute 80 per cent of its returns to investors on a quarterly basis

    According to the fund manager, the Lotus Capital Fixed Income Fund seeks to attract investors interested in low risk, liquidity, capital preservation, shari’ah-compliant investment, competitive returns,     portfolio diversification and a regular income stream

    The Lotus Capital Fixed Income Fund projects a return on investment of 15 per cent for 2018. However, the Fund’s returns will be determined by the performance of the underlying assets and therefore, may deviate significantly from the forecast.

  • EFInA backs Lotus Capital with $250,000 grant

    The Enhancing Financial Innovation & Access (EFInA) has given a technical assistance grant of $250,000 to Lotus Capital Limited, to support the “Lotus Health is Wealth Savings Plan”.

    EFInA is a financial sector development organisation that promotes financial inclusion in Nigeria. Lotus Capital Limited is the pioneer provider of non-interest financial services in Nigeria. The company provides a broad spectrum of fund/portfolio management services for individual, corporate and retail clients.

    The Lotus Health is Wealth Savings Plan (LHIWSP) is a dynamic non-interest, fixed income savings product that will also offer health insurance. The plan is structured around monthly collections of deposits from customers which will be invested in non-interest, low-risk instruments, and non-interest fixed term investments to give customers returns on their savings. A small portion of customers’ deposits will be allocated to pay the monthly premiums for health insurance. The project will be piloted in Lagos, Abuja and Kano States. Lotus Capital will target traders, market associations, religious associations, service companies and women pressure groups.

    Speaking about the Grant, the Chief Executive Officer of EFInA, Chidinma Lawanson, stated that, “The EFInA Access to Financial Services in Nigeria 2014 survey revealed that 16.8 million adults representing 18 per cent of the adult population who do not use non-interest banking products stated that they are likely to take up such products if they are readily available.

    Managing Director of Lotus Capital, Hajara Adeola said: “Since our founding, we have being dedicated to creating wealth ethically for our clients. Our firm belief is that with the right financial plan and education, everyone can and should improve the quality of their life. Through this project, we hope to encourage the development of an investment culture among the low income and financially excluded segment of the population”.

  • Lotus Capital plans new mutual funds

    Lotus Capital Limited, the fund manager of Lotus Capital Halal Investment Fund, is considering floating new public funds as it urges investors in its premier fund to have long-term outlook of between five to 10 years.

    In an investment update obtained by The Nation, the firm said the new funds would be tailored to meet the specific needs of different segments of investors.

    It noted that the new funds would provide opportunities for investors whose profiles could not fit into the long-term nature of the Halal Fund and further diversify the investors’ base of the company.

    According to the company, investors in Halal Fund, which was launched in 2008, should have minimum waiting period of five to 10 years as the value of the investments could fluctuate within a short-term framework.

    Lotus Capital stated that it had changed its investment management strategies to preserve investors’ funds and ensure competitive returns pointing at 14 per cent appreciation between December 2011 and February 2013 as indicative of the success of the new strategy.

    “To ensure adequate diversification and manage our risk exposure, we have also identified viable real estate and selected asset-backed investments which we believe will enhance the performance of the Hala Fund in the medium term,” the fund manager stated.

    The fund manager blamed the performance of the mutual fund, which is 83 kobo as against its initial public offering price of N1, on the meltdown in the stock market.

    The Halal Fund is an ethical collective investment scheme.

    Meanwhile, recent analysis showed that an average investor whose beliefs constrain him from investing in certain groups of stocks can still make better returns than investors with unrestricted investment portfolios

    Year-to-date return analysis dated December 10, 2012 showed that ethical investor earns more than 10 percentage points above average return for general investor while investors in highly capitalised stocks and consumer goods companies are also likely to earn more than average return by portfolios that mirror the entire market.

    Investors in insurance and oil and gas sectors continue to feel the pains of the recession, with double-digit negative returns.

    Official data from the NSE indicates that the stock market opened trading on the day with average year-to-date return of 28.66 per cent. The NSE has six group indices including indices for the 30 most capitalised stocks, banking subsector, insurance subsector, oil and gas subsector, consumer goods subsector and ethical stocks.

    Ethical stocks under the NSE-Lotus Islamic Index (NSE-Lotus II) opened the day with the highest year-to-date return of 38.98 per cent. The NSE 30 Index, which tracks the 30 most capitalised stocks, opened with a return of 37.10 per cent while consumer good index indicated year-to-date return of 36.71 per cent. The banking sector index showed a return of 13.82 per cent.

    However, oil and gas index opened trading with a return of -30.81 per cent while insurance stocks showed year-to-date yield of -18.60 per cent. The NSE Lotus II is the first index created to track the performance of Shari’ah compliant equities on the NSE and also the first index to be developed in collaboration with local partners. It was developed by the NSE in conjunction with Lotus Capital Limited.

    The NSE Lotus II excludes stocks in industries such as alcohol, interest-based financial services, tobacco, arms and ammunitions, gambling, piggery and other businesses regarded by Muslims’ laws as unlawful.

    The NSE Lotus II was introduced to increase the breadth of the market and create an important benchmark for investments as the alternative non-interest investment space widens.

    The Exchange had reasoned that NSE Lotus II would serve as an important diversification tool for ethically minded investors and portfolio managers both locally and from around the world, who seek to profitably invest in emerging African equities market. It is also expected to serve as a general benchmark for ‘ethical’ funds and also basis for creating Mirror Funds, Index Funds, Exchange Traded Funds, Index options and other instruments, which would broaden the range of financial instruments being traded on the NSE.