Investors Hail Coral Growth Fund’s Management
Investors of Coral Growth Fund (CGF) have commended the Fund manager, FSDH Asset Management Limited, for its efficient and honest management of the fund since its establishment. They also advised the manager to continue investing in more securities to enable more people have access to funds to solve their financial problem.
Speaking to THISDAY on the sidelines of the annual general meeting (AGM) of CGF held in Lagos, one of the unit holders, Mr. Ajao Johnny Adelakun, said: “I find the management of the fund very interesting. I’ve been in the investment since four years and I find it very interesting.
“My advice to the managers is for them to invest in more projects and stocks so that those who need fund will be able to get it to solve their financial problem.
“That’s what they should do going ahead. So, they should invest more, grow the fund more, so that we can also have an increase in our dividends.”
However, the Managing Director of FSDH Asset Management Limited, Olumayowa Ogunwemimo, who welcomed the advice, stated: “that’s basically what the Fund Manager is doing, trying to extract maximum value from the instruments that are invested.” Meanwhile, the Fund Manager’s Report for the year ending December 31, 2018 which was read at the meeting indicated a negative return of 1.08 per cent, but showed, however, that the Fund did out-perform the Nigerian Stock Exchange All Share Index (NSE ASI) which depreciated by -17.81 per cent in the same period. According to the report, “the Stock Market 2018 witnessed a short-lived bullish run for the first quarter in 2018 while there was a persistent bearish run for the rest of the year. The bullish run was essentially driven by expectations of bright macroeconomic outlook, as well as brilliant corporate management”.
It added: “In view of our opinion that some of the quoted stocks are trading below their fair value, we will take advantage of purchasing selected stocks with good fundamentals, take profit when the prices appreciate. In addition, in the fixed income and money market space, we will continue to look into high yielding securities”.
The Coral Growth Fund established in February 2001, is an actively managed open-ended equity-based unit trust scheme that invests a maximum of 65 per cent of its assets in equity securities quoted in the Nigerian Stock Exchange and a minimum of 35 per cent in investment grade fixed income investments.
The objective of the Fund is to enable investors achieve capital growth over the long term. In particular, the CGF is designed to enable investors satisfy a broad range of financial needs as it can be used as a private pension/retirement plan, investments plan, or children’s educational plan.