Energy Fund Declares Coupon Payment

• Energy Fund Declares Coupon Payment

The Nigeria Energy Sector Fund has declared a coupon payment of N51 per note to unit holders for the financial year ended March 31, 2016.

The coupon translates to 9.23 per cent at the current market price of N552.20 per note.

Over the last three years, the fund has delivered an average return of 10.74 per cent to unit holders in terms of coupon payments as against a negative return of 15.05 per cent in the stock market during the same period.

The fund, a closed-end investment vehicle quoted on the Nigerian Stock Exchange, was created by Nigeria Energy Sector Fund Plc to mobilise investible funds from local and foreign individuals and corporate entities for investment in the energy sector of the Nigerian economy.

According to a statement from the fund manager, SCM Capital, 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 Group Managing Director, SCM Capital, Gaventa Otono, said, “The fund since inception has continued to witness significant growth and delivered value to unit holders in terms of coupon payments that is second to none in the industry.”

“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 reaffirmed its resolve to aggressively manage and take advantage of emerging opportunities in the economy despite the current economic recession which, according to it, offered both opportunities and challenges to fund managers.

According to the statement, in 2015, despite the impact of severe diminution incurred on investments in some oil and gas stocks due to weak performance, the fund delighted unit holders with a N35 coupon per note distribution.

It said this translated into 6.33 per cent yield as against a negative return of 17.36 per cent in the stock market, adding, “Also in 2014, unit holders earned N92 coupon per note, which translated into a yield of 17 per cent, compared to a negative return of 16.14 per cent in the stock market during the period.”