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.
Source: The nation