Mutual Funds In Nigeria

[hispy99]

Personal Finance Features and Tools

[knightofdelta]

Originally Posted by blanka

I gree. No chop de one wey go bring blood on the dance floor or on the street.

...except if it is the blood of the bears prowling on Marina.

[hispy99]

Nigerian funds switch to bonds, boosting liquidity

[c kenneths]

Lotus capital lists 3,205,725,266 units of their Halal fund this week. The fund was listed at 0.87k and was listed under the memorandum listings.

[hispy99]

I guess KoD's armed robber salary is to blame for this...

CSL Legacy Fund unit holders get no dividend | Vanguard News

[knightofdelta]

Originally Posted by hispy99

I guess KoD's armed robber salary is to blame for this...

CSL Legacy Fund unit holders get no dividend | Vanguard News

This is balderdash reporting. I am going to send a mail to Vanguard about this.

The year end for Legacy Fund is June 30, not December 31. Dividends were paid for the year end June 30, 2008 and there is no unit holder that has been denied of it. The results for June 30, 2009 has not been declared.

First City Asset Management is in charge of the fund and the unit became an independent entity in late 2008 and new management was brought in. The new management brought in KoD in early 2009 so the impact of the armed robber peanut salary has not been felt.

[knightofdelta]

Originally Posted by hispy99

I guess KoD's armed robber salary is to blame for this...

CSL Legacy Fund unit holders get no dividend | Vanguard News

I have thoroughly analysed the contents of the questionable article. Incidentally, all the references and computations are correct, except:

1) The reference to 31 December 2008 as the period end date rather than 30 June 2008; and
2) The mention of no dividend payment in 2008 and payment of N21.182m in 2007. Incidentally, the reporter seems to have inferred these two sub-points from the Fund’s P&L. It’s the unfortunate disadvantage of the financial reporting method adopted for the Fund. The risk of this sort of interpretation had actually been raised in-house before now. Regardless, the notes to the account contains details of the proposed distribution; and generally, the notes form part of the accounts to be reviewed by users. Particularly, the Fund’s P&L reflects only the N21.182m interim distribution paid in 2007 (under the Jun 2007 FYE comparative figures) and not the N36m final payment (which would have featured as a provision under the 2007 figures if an alternative accounting method were used; though it was reflected in the June 2008 FYE Notes (on Reserves) and Cashflow statement).
In effect:
a. the total distribution payment (equivalent of the reporter’s reference to ‘dividends’) in 2006/2007 financial period was N57.182m and not N21.182m.
b. given the reporting method adopted, when the 2008/2009 report is published, the total dividend payment of over N40m made for the 2007/2008 financial period would be reflected on the 2008/2009 Cashflow Statement and Movement in Reserves.
c. the 2007/2008 proposed distributions are stated under note 20 of the published financial statement, being the Fund’s chosen reporting method for proposed distributions.

Since it’s inherently complex explaining our current accounting method to the understanding of a number of lay users of financial reports, I will recommend we don’t attempt justifying our method. I’d suggest that we rather focus on stating some, or all, of the following categorically:
1) The Fund Manager reflects only dividends paid within a year on its P&L for that year;
2) Proposed distributions are not stated on the Fund’s P&L Statements until after ratifications are obtained from Unitholders at the Fund’s AGMs. Since the Fund’s Financial Reports are prepared before Unitholders’ ratifications are obtained at AGMs, the actual amounts proposed for payment do not reflect in the P&L Statements of the respective ‘Current Year Under Review’;
3) The proposed distributions are stated in the notes to the financials as well as under the Summary of Statements of Total Returns (in the Notices of AGM), which form part of the Financial Reports sent to all Unitholders yearly;
4) The Fund’s FYEs are up to June and not December;
5) The Fund Manager proposed 5.35kobo ( or N0.538k) per N1 Unit for the Jun 2008 FYE, which Unitholders adopted by resolution at the AGM and have since been paid to Unitholders who did not indicate a preference for the purchase of additional Units in their names; and
6) The Fund paid an interim distribution of N21.182m during the June 2007 FYE but a total of N57.182m; which is exclusive of the 4.5kobo (or N0.045k) gratis payment made by the Fund Manager to subscribers to the Fund’s initial public offering.

Notably, we find it curious that in reviewing the Audited Statements and Reports, the reporter had discountenanced the amounts disclosed as proposed distribution on the published audited financials. As a matter of fact, all distribution warrants have been dispatched and records from the Registrars indicate that a large number of Unitholders have already claimed their distributions.

Abiola Sanni
Chief Operating Officer
First City Asset Management Limited
Primrose Towers, 17A Tinubu
Lagos
DL: 01 739 1545
M: 0708 713 7141
Tel: 2793030 (Ext. 2452

[hispy99]

Originally Posted by knightofdelta

I have thoroughly analysed the contents of the questionable article. Incidentally, all the references and computations are correct, except:

Notably, we find it curious that in reviewing the Audited Statements and Reports, the reporter had discountenanced the amounts disclosed as proposed distribution on the published audited financials. As a matter of fact, all distribution warrants have been dispatched and records from the Registrars indicate that a large number of Unitholders have already claimed their distributions.

Abiola Sanni
Chief Operating Officer
First City Asset Management Limited
Primrose Towers, 17A Tinubu
Lagos
DL: 01 739 1545
M: 0708 713 7141
Tel: 2793030 (Ext. 2452

This forum is indeed important for COO to be posting here

On a more serious note, pass my appreciation to Abiola for the clarification, although I suspected there were some errors in the Vanguard article (which I failed to mention when I posted the link) given that KoD had earlier confirmed that a dividend of ~ 5k was paid in his post of 30 June.

On a less serious note, so your COO now knows that you spend your time posting on SMN...when you don't meet deadlines, he know why now

[knightofdelta]

Originally Posted by hispy99

This forum is indeed important for COO to be posting here

On a more serious note, pass my appreciation to Abiola for the clarification, although I suspected there were some errors in the Vanguard article (which I failed to mention when I posted the link) given that KoD had earlier confirmed that a dividend of ~ 5k was paid in his post of 30 June.

On a less serious note, so your COO now knows that you spend your time posting on SMN...when you don't meet deadlines, he know why now

That was a mail I got from him. I sent the link to the all the rank and file of the investment banking group and it sparked a serious conversation everywhere.

SMN is a closely guarded secret between me, myself and I. They keep thinking I am a genius when I quote data from this forum. Hehehe

[knightofdelta]

Vanguard corrects publication on Legacy Fund...

[hispy99]

How market volatility distorts mutual funds

[hispy99]

http://www.proshareng.com/news/singleNews3.php?id=1737
Stanbic IBTC floats N2bn fixed income funds’ offer

[pumping]

Originally Posted by hispy99

http://www.proshareng.com/news/singleNews3.php?id=1737
Stanbic IBTC floats N2bn fixed income funds’ offer

Just wondering if these funds will further have a negative impact liquidity.