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Nigeria International Debt Fund gets ‘A’ Rating

By BusinessNews Staff on December 24, 2014

The Nigeria International Debt Fund (NIDF), an NSE listed mutual fund that invests in fixed income securities of federal and state governments, has been rated “A-” by Global Credit Rating Company (GCR).
GCR was quoted to have said in its report that in rating the NIDF, cognizance was taken of the management quality of the Asset Manager, Afrinvest Asset Management Limited, as well as the consistency of the team of individuals managing the fund.

According to the report, “The fund’s three-year performance track record (in terms of return on investment) to 31 December 2013 is considered satisfactory, averaging 12 per cent annualised, which compared
favourably with the minimum return expectation of 10 per cent.”

The report also noted that the accorded rating reflects the credit quality of the fund’s assets, comprising mainly high investment grade rated sovereign and municipal bonds as at 2013.
Reacting to the rating, Managing Director of Afrinvest Asset Management Limited, Ola Beglore said he high rating of the NIDF by GCR is testament to the firm’s professionalism and adherence to global best practices, as well as its commitment to providing value for clients’ investments.

“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.”

Investors in NIDF had this year received an interim dividend of N60.71 per note, which as well above the initial estimated dividend payment of N36.00 per note.

“Dividends have become an important factor for investors to consider and, at Afrinvest, we are committed to providing value for our clients, helping them achieve their investment objectives,” Belgore had said.
According to him, the dividend was the 32rd coupon in the life of the fund which was launched in 1997.

“The interim distribution is in line with the structure of the NIDF, as the Fund is designed to pay distributions twice a year, as indicated in the Fund’s Trust Deed,” he had said.

The NIDF is a privately managed, collective investment scheme, mandated to invest in a collection of domestic (federal or state government issued) fixed interest securities.

Afrinvest Asset Management Limited is licensed by the Securities & Exchange Commission as a fund/portfolio manager. It is a subsidiary of Afrinvest (West Africa) Limited, a wealth advisory firm involved in investment banking, securities trading, asset management and investment research with a focus on West Africa.

[ThisDay]

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