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LFIF reports N44m PAT, proposes N2.08 dividend per share

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Taiwo Olashore

Lead Fixed Income Fund (LFIF), an open-ended fund managed by Lead Asset Management Limited, has reported a 14.7 per cent increase in its Profit After Tax (PAT), for the year ended December 31, 2018, fuelled by increases in its subscriber base. Data compiled from the company’s 2018 financials revealed that PAT rose to N44 million in 2018, N5.64 million above the N38.36 million reported in 2017.

In the period under review, the fund posted 3.83 million units of new subscribers amounting of N459.55 million in 2018, a 32.37 per cent increase compared to the N347.16 million in 2017.Speaking at the company’s Annual General Meeting (AGM), Managing Director, Lead Asset Management, Taiwo Olashore, said all the company’s expectations were met, as the unit holders remain happy since the fixed income fund was created, and had paid dividend twice in a year.

His words: “I think we are doing very well. Our current yield is about 13.6 per cent, which is clearly above the inflation rate and the indices are looking quite attractive even for Nigeria as a country.

“If you had invested N100 in 2018, that amount today would have become N140, that an investment growth by 40 percent, which is actually not bad.“We want to offer different varieties of products, we recently concluded the IPO for Balanced Fund, which is also a combination of equity and fixed income instruments, and later in the year we’ll also launch our money market fund.”

Speaking further, Olashore said that LFIF recorded a 7.27 per cent growth in revenue, in the year under review, as revenue grew from N47.99 million generated in 2017 to N51.477 in 2018.He proposed a 25 per cent dividend payment to members whose names appeared on the members register as at the close of book for full-year ended 31 December 2018, which is a N2.08 dividend payment per unit of share, in line with the provisions of the trust deed.

In her remarks, a subscriber to the Fund, Oyekanmi Marian, said she found the Fund very interesting after she signed up in 2018, as the fund appreciated very fast.

Meanwhile, data from the company’s 2018 financials revealed that 64.44 per cent of the funds were invested in Treasury bills, 19.57 per cent in Bonds, 12.11 per cent in Commercial Paper, and 3.8 per cent in Cash at the bank.

The fund’s asset allocation went through significant changes, voted by unit holders in line with the trust deed, to increase the number of units and value, and reduce the minimum entry value to N5,000, which however gave the fund an impressive performance in the full year.

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Taiwo Olashore
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