The Nigerian Stock Exchange (NSE) has given Lotus Capital Halal Investments Limited clearance to list its 1,486,877 units of Fixed Income Fund at N1,000 each on the memorandum board of the NSE.
This is sequel to the approval by Lotus Capital’s Shari’ah Advisory Board as well as the Securities and Exchange Commission (SEC).
What this means
The fund is an open-ended collective investment scheme which invests strictly in Shari’ah-compliant fixed income instruments and contracts such as sovereign and sub-sovereign sukuk, corporate sukuk, Shari’ah-compliant fixed-term investments, Murabaha (cost-plus financing) contracts and ijarah (lease) contracts.
The Shari’ah compliant nature of the Fund ensures that all investments are ethical. Therefore, it is not invested in interest-bearing instruments such as treasury bills, conventional bonds or conventional bank deposits. Likewise the stock market in order to avoid the associated volatility.
The primary objective of the Fund is to generate competitive returns on investment in a Shari’ah Compliant manner whilst ensuring capital preservation. The objective will be realised through investments in a carefully selected and well-diversified portfolio of Shari’ah-compliant fixed income instruments and products while leveraging on the bargaining power from pooling funds to earn competitive returns.
According to the company, the Lotus Capital Fixed Income Fund projects a Return on Investment (ROI) of 15 percent for 2018.
The fund return will be determined by the performance of the underlying assets and therefore, may deviate significantly from the forecast. Notwithstanding, the Fund intends to distribute 80% of its returns to investors on a quarterly basis.
Recently, Lotus Capital received a Technical Assistance Grant of $250,000 from Enhancing Financial Innovation & Access (EFInA) to support the its “Lotus Health is Wealth Savings Plan”.
The plan is a dynamic non-interest, fixed income savings product that offers health insurance. The Plan is structured around monthly collections of deposits from customers which will be invested in non-interest, low-risk instruments, and non-interest fixed term investments to give customers returns on their savings.
Managing Director, Lotus Capital, Mrs. Hajara Adeola, noted that the company will strive harder to maintain its integrity by offering present and future customers innovative and rewarding investment products without violating their religious beliefs or personal values.
She further disclosed that the fund is structured in line with the tenets of Islam, having various checks and balances that ensures that it is not used for prohibited activities.
Lotus Capital is a full-service, Halal investment management company specializing in Shari’ah compliant asset management, private wealth management, and financial advisory services. Lotus Capital was founded in June 2004 with the specific objective of meeting the investment needs of ethical individuals, businesses, and organizations across West Africa.
Lotus Capital is duly registered with the Securities & Exchange Commission (SEC) as Fund Managers, Corporate Investment Advisers, and Issuing House.
Lotus Capital is the first company in Nigeria to provide exclusive Islamic financial services. It established the first Shari’ah compliant mutual fund in 2008, structured the first sub-sovereign sukuk in 2013 and launched the first Shari’ah compliant Exchange Traded Fund in 2014.
The company is a member of the Islamic Financial Services Board, an international standard-setting organisation that promotes and enhances the soundness and stability of the Islamic financial services industry.