The Nigerian International Debt Fund, a mutual fund managed by Afrinvest Asset Management Limited, will pay a minimum of N40 per note holder as final coupon to investors for the year ending December 31, 2014.

According to the fund manager, a total of N25.191m will be distributed amongst note holders on the register of the fund as at the closure date of February 5, 2015.

A statement by Afrinvest Asset Management quoted its Managing Dirctor, Mr. Ola Belgore, as saying the payment represented the 34th coupon in the life of the fund since its launch in 1997, adding that the final distribution was in line with the structure of the NIDF. The fund is designed to pay distributions twice a year.

He said, “NIDF paid an interim coupon of N60.71 per note in August 2014 and, with an estimated N40.00 per note to be paid on February 11, 2015, the total payment for the 2014 financial year stands at N100.71.”

Belgore also explained that the performance of the fund in the year under review was positive.

“The fund closed the year at a price of N1, 978.31 per note achieving a N68.51 capital gain over the opening price for 2014. At the trading price of N1987.26 on Wednesday, January 21, 2015 the coupon yield was 5.1 per cent,” he said.

The NIDF invests in the domestic and international debt instruments of the Federal Government of Nigeria as well as those of the 36 states.

According to the statement, the fund 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, insurance companies, asset managers and gratuity funds.

The NIDF was recently rated ‘A-‘ by Global Credit Rating Company.

The fund manager had explained in August that the interim dividend it paid that month had exceeded estimates due to an impressive performance by the fund.

The fund manager had in July announced that it would pay an interim dividend of N36 per note to investors in the NIDF, a Nigerian Stock Exchange-listed mutual fund. However, it eventually paid N60.71 interim dividend to NIDF investors on Wednesday, August 13.

The N60.71 being paid was N24.71 or 68.6 per cent higher than the projected dividend payment of N36 per note earlier announced.

Afrinvest Asset Management Limited 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.

Punch