The Nigerian Sovereign Investment Agency (NSIA) has realised about N1.2billion profit as at the first quarter, ending March 31.
The amount is nearly N1billion over the return made last year.
NSIA Managing Director/CEO Uche Orji broke the news in Lagos. With him was NSIA’s Executive Director & Chief Investment Officer, Hanspeter Ackermann. He said the result aligned with the expectations of his team, adding that although it is impossible to predict what the future outcome might be, given the volatility of the economic environment, he expressed confidence that “the NSIA is on the path to deliver a more robust performance by the end of 2014”, all things being equal.
Orji said given the level of performance by the agency in the last three months from April, there could be a repeat performance of the March ending figures. Nonetheless, he would prefer that the accounts go through audit scrutiny before they are finally released, adding that a N2.7billion projected profit for June ending will not be off the mark.
Said Orji: “We are on track to deliver similar or higher numbers as seen in Q1. We will be in a better position to release the specifics,” in the course of July. He said the proceeds are coming from about 50 per cent of NSIA’s investment of its total investment fund.
Orji said the agency has split its Fund into three broad categories - Stabilisation Fund, Future Generation Funds and Infrastructure Fund. Of the fund, 20 per cent is allocated to Stabilisation. The other two are allocated 40 per cent apiece.
He said due to low interest rates and other contending market forces, the Stabilisation Fund is not structured to yield much returns. Nevertheless, it has made modest returns of about 0.55 per cent, Orji said, adding: “We have decided to tweak the strategy of this fund as we adjust to the near zero-interest rate environment in developed markets and the uncertainty of rising rates. As such, we have reallocated the growth portion of this portfolio to managers with the expertise and latitude to navigate such contrasting environment.”
The NSIA chief said the agency has deployed its infrastructure quotient of the Fund to play in the realisation of the Second Niger Bridge, and would soon get involved in the Lagos-Ibadan Expressway. He listed the Nigeria Mortgage Refinancing Company , the power sector and health as other areas on the NSIA list.
On insinuations that the Second Niger Bridged is mired in politics, Orji said nothing could be farther from the truth.
Work on the bridge is progressing as planned, Orji said, adding that nothing has delayed the pace of construction in any way. He said the Environmental Impact Assessment (EIA) report had been done and compensation paid to those whose land and properties were affected.
He pointed out that the 1.2kilimetre six-lane bridge and the additional piled bridge stretching a distance of 12kilometers that the Fund is financing would be ready in four years, as planned.
Dr. Orji’s view the Future Generations Funds is the NSIA’s toast as most of the returns are derived from it. He said the investment in this segment are factored into hedge funds, Long-Only Equity Managers, Emerging Markets, Private Equity and into Developed Markets.
He said the Funds’ timing for allocating capital to emerging markets had been excellent, “as we practically picked the bottom of these markets resulting in strong performance for the asset class”.
Orji said one of the funds had returned yields in excess of seven per cent.
The amount is nearly N1billion over the return made last year.
NSIA Managing Director/CEO Uche Orji broke the news in Lagos. With him was NSIA’s Executive Director & Chief Investment Officer, Hanspeter Ackermann. He said the result aligned with the expectations of his team, adding that although it is impossible to predict what the future outcome might be, given the volatility of the economic environment, he expressed confidence that “the NSIA is on the path to deliver a more robust performance by the end of 2014”, all things being equal.
Orji said given the level of performance by the agency in the last three months from April, there could be a repeat performance of the March ending figures. Nonetheless, he would prefer that the accounts go through audit scrutiny before they are finally released, adding that a N2.7billion projected profit for June ending will not be off the mark.
Said Orji: “We are on track to deliver similar or higher numbers as seen in Q1. We will be in a better position to release the specifics,” in the course of July. He said the proceeds are coming from about 50 per cent of NSIA’s investment of its total investment fund.
Orji said the agency has split its Fund into three broad categories - Stabilisation Fund, Future Generation Funds and Infrastructure Fund. Of the fund, 20 per cent is allocated to Stabilisation. The other two are allocated 40 per cent apiece.
He said due to low interest rates and other contending market forces, the Stabilisation Fund is not structured to yield much returns. Nevertheless, it has made modest returns of about 0.55 per cent, Orji said, adding: “We have decided to tweak the strategy of this fund as we adjust to the near zero-interest rate environment in developed markets and the uncertainty of rising rates. As such, we have reallocated the growth portion of this portfolio to managers with the expertise and latitude to navigate such contrasting environment.”
The NSIA chief said the agency has deployed its infrastructure quotient of the Fund to play in the realisation of the Second Niger Bridge, and would soon get involved in the Lagos-Ibadan Expressway. He listed the Nigeria Mortgage Refinancing Company , the power sector and health as other areas on the NSIA list.
On insinuations that the Second Niger Bridged is mired in politics, Orji said nothing could be farther from the truth.
Work on the bridge is progressing as planned, Orji said, adding that nothing has delayed the pace of construction in any way. He said the Environmental Impact Assessment (EIA) report had been done and compensation paid to those whose land and properties were affected.
He pointed out that the 1.2kilimetre six-lane bridge and the additional piled bridge stretching a distance of 12kilometers that the Fund is financing would be ready in four years, as planned.
Dr. Orji’s view the Future Generations Funds is the NSIA’s toast as most of the returns are derived from it. He said the investment in this segment are factored into hedge funds, Long-Only Equity Managers, Emerging Markets, Private Equity and into Developed Markets.
He said the Funds’ timing for allocating capital to emerging markets had been excellent, “as we practically picked the bottom of these markets resulting in strong performance for the asset class”.
Orji said one of the funds had returned yields in excess of seven per cent.
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