Q4: Lotus Halal Fixed Income Fund Investors Receive N30.77

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By Goddy Egene

Unit holders in the Lotus Halal Fixed Income Fund last Friday received N30.77 per unit distribution for the fourth quarter ended December 31, 2019.

The fund, managed by the Lotus Capital Halal Investments Limited, 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 fund, which was floated in 2016 and got listed on the NSE in 2018, offer investors the opportunity to invest in Shari’ah-compliant fixed income securities and investment products.

 According to the fund managers, the fund  affords investors the opportunity to earn competitive returns while avoiding exposure to the risks associated with equity investments.

“The fund also seeks to achieve capital preservation whilst maximising returns through investing in strategically diversified portfolio of Shari’ah-compliant fixed income securities and products,” the fund manager said.

Based on the Shari’ah, this implies the fund’s investments must be ethical and it must not invest in interest bearing instruments such as treasury bills, conventional bonds or conventional bank deposits.

According to the fund manager, the Lotus Capital Fixed Income Fund seeks to attract investors interested in low risk, liquidity, capital preservation, shari’ah-compliant investment, competitive returns, portfolio diversification and a regular income stream

The managers added that fund is for investors with low risk appetite, who seek safety and capital preservation as well as relatively attractive returns. It pays distribution to investors every quarter.

“The fund is aimed at ethical investors seeking competitive returns without compromising their beliefs,” it stressed.