The Nigeria Energy Sector Fund (NESF), a closed-end investment vehicle quoted on the Nigerian Stock Exchange (NSE) has declared a coupon payment of N51 per note to unitholders for the financial year ended March 31st 2016.
The coupon translates to 9.23% at the current market price of N552.20 per note.
A statement explained that over the last three years, the Fund has delivered an average return of 10.74% to unitholders in terms of coupon payments.
“This impressive returns, notwithstanding the bearish mood that characterized the equities market following the prevalent weak macroeconomic environment in the country, is a demonstration of sound management of the Fund”,said the statement.
It added: “In 2015, despite the impact of severe diminution incurred on investments in some oil and gas stock due to weak performance, the Fund delighted unitholders with a N35 coupon per note distribution.
“This translated into 6.33% yield as against a negative return of 17.36% in the stock market. Also in 2014, unitholders earned N92 coupon per note, which translated into a yield of 17% compared to a negative return of 16.14% in the stock market during the period”.
Commenting on the returns achieved by the Fund in the last three years, Gaventa Otono, the Group Managing Director of SCM Capital who is the Fund Manager said “The Fund since inception has continued to witness significant growth and delivered value to unitholders in terms of coupon payments that is second to none in the industry”.
According to him “We kept our investment philosophy and adopted sound investment methodology to continue to sustain the Fund`s performance. The adoption of the improved and optimal appropriate asset allocation strategy has been key to the performance”.
On future expectation, the Fund Manager reiterates its resolve to aggressively manage and take advantage of emerging opportunities in the economy despite the current economic recession which offers both opportunities and challenges to fund managers.
While reassuring on its potential to generate competitive returns on investment, the Fund Manager urged discerning investors who are driven by the passion to earn regular income to take advantage of the enormous opportunities available to invest in the Fund in order to earn consistent income.
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.
