By Goddy Egene
More investors will now have the opportunity to invest in the Nigerian International Debt Fund (NIDF) as its manager, Afrinvest Asset Management Limited (AAML), has decided to reduce the minimum investment from N1 million to N100,000. NIDF is an NSE-listed mutual fund since 1997 that invests in fixed income securities of the Federal Government of Nigeria, as well as those of the 36 States.
While the fund has been delivering significant returns to investors over the years, some prospective ones have been denied the benefits because of the entry point that was at N1 million.
However, AAML has proposed a reduction in the par value of the notes. The reduction and other amendment in the Trust Deed of NIDF will be considered at an extraordinary general meeting (EGM) of noteholders of the fund on Thursday in Lagos.
According to Managing Director of AAML, Ola Belgore, the EGM will discuss and get consent on the proposed amendment to the NIDF Trust Deed.
“ One of the major resolutions expected to be passed at the EGM is the amendment of the definition of ‘New Investment Notes’ in the Deed of Amendment and Restatement of Trust Deed of October 12, 2009 to mean that Notes of a par value of N100.00 will be issued to existing Noteholders in substitution for their existing Notes,” Belgore said.
He explained that the proposed reduction in par value from the N1, 000.00 N100.00 implies a stock split.
“The rationale for the stock split is to reduce the minimum entry value, which is currently at about N1 million to about N100,000. This will, in turn, accommodate more prospective customers as well as reduce the concentration risk of the Fund,” he stated.
According to him, all NIDF Noteholders are entitled to attend the EGM, or may appoint any person as proxy to vote on their behalf.
“NIDF offers investors safety, capital preservation, steady returns, diversification and value, and has a consistent dividend history making it quite attractive for both individual and institutional investors such as Pension Fund Administrators (PFAs), insurance companies, asset managers and gratuity funds.
Earlier in February 2016, a coupon of N49.00 per note was paid to noteholders on the NIDF register, representing the 36th coupon in the life of the fund since its inception in 1997.
In 2015, the NIDF was rated “A-” by Global Credit Rating Company (GCR), which is consider among the best for mutual funds in the market today.