Investors Receive N102 Per Note as NESF Doubles Coupon Payment

Investors in the Nigeria Energy Sector Fund (NESF) have received a coupon payment of N102 per note for the financial year ended March 31, 2017. NESF is a closed-end mutual fund quoted on the Nigerian Stock Exchange (NSE).

The coupon payment represents an increase of 100 per cent over the N51 paid in the previous year and also translates to a yield of 18.47 per cent at the current market price of N552.20 per note. The coupon was paid on February 16, 2018, to the noteholders whose names appeared on the Fund Managers register on the close of business on February 16th, 2018.

Reviewing the performance of the fund during the period, the Acting Managing Director of SCM Capital Asset Management Limited, Omololu Ajediran, noted that its gross earnings increased by 162.87 to N203.52 million in 2017 from N77.42 million recorded in the previous period of 2016. The profitability also grew by 99.26 from N50.9 million in March 2016 to N101.98 million in March 2017. He attributed the significant growth in the top and bottom-line to timely switch of investment strategy amongst various asset classes within the Trust Deed of the Fund.

“We were also able to optimise return from the equities market as against the challenges in the oil & gas sector in the previous year and the prevalent of bearish market mood occasioned by weak macroeconomic environment,” he said.

Also commenting on the impressive returns achieved by the fund, , the Group Managing Director of SCM Capital, Gaventa Otono said: “The fund since inception has continued to witness growth and deliver value to note holders in terms of coupon payments that is second to none in the industry.”

According to him, they kept their 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-emphasized 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 NESF for exceptional return.

The NESF 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. NESF 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.