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NESF doubles investment returns at N102 per note


An employee walks past electricity pylons carrying high voltage cables at the newly renovated energy generation plant, operated by Egbin Power Plc, in Lagos, Nigeria, on Wednesday, Aug. 26, 2015. While Nigeria was the world’s fourth-biggest exporter of liquefied natural gas in 2012, it’s struggling to meet local demand for the fuel used by plants that generate at least 70 percent of the country’s electricity needs. PHOTO: George Osodi/Bloomberg

Noteholders in The Nigeria Energy Sector Fund (NESF), a closed-end investment vehicle quoted on the Nigerian Stock Exchange (NSE) are to receive a coupon payment of N102 per note for the financial year ended March 31, 2017.

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.

This has been paid since February 23, 2018, to the Noteholders whose names appeared on the Fund Managers register on the close of business on February 16, 2018.


Reviewing the performance of the Fund during the period, the Acting Managing Director of SCM Capital Asset Management Limited, Omololu Ajediran, noted that the Fund`s gross earnings increased by 162.87 per cent to N203.52 million in 2017 from N77.42 million recorded in the previous period of 2016.

The profitability also grew by 99.26 per cent from N50.9 million in March 2016, to N101.98 million in March 2017, while he attributed the significant growth in the top and bottom-line to timely switch of investment strategy among various asset classes within the Trust Deed of the Fund.

According to him, “we were also able to optimize return from the equities market as against the challenges in the oil and gas sector in the previous year and the prevalent of bearish market mood occasioned by weak macroeconomic environment”.
Also commenting earlier 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 Noteholders in terms of coupon payments that is second to none in the industry.

“We kept our 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 Nigeria Energy Sector Fund (NESF) for exceptional return.

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