Peter Egwuatu

FBN Heritage Fund declared a profit of ?955.8million for the financial year ended March 31, 2010. This represents a return of 21.4 per cent in 12 months.

The Fund closed the financial year with an Offer/Bid price of ?91.96 and ?89.28 respectively, translating to ?16.22 appreciation in absolute terms on the offer price as at April 1, 2009.

Total operating expenses (inclusive of Fund Manager’s fee) amounted to ?95.33million. The returns resulted in the reduction of the accumulated deficit from ?1.438billion to ?577.699million as at March 31, 2010.

Addressing unit holders at the 2nd Annual General Meeting of the Fund in Lagos on Thursday, Mr. Abiodun Akinjayeju, Head of Asset Management at FBN Capital Limited, the Fund Manager, stressed that, “following the amendments to the Trust Deed obtained at the last AGM of the Fund, the Fund Manager embarked upon a strategic asset reallocation into assets classes that was to significantly address the difficult market conditions in the stock market in the final quarter of 2009”.

He further noted that the Fund’s performance was tempered by its strategy which was overweight in money market/fixed income securities asset class for greater part of the reporting period.

He added, “although the Fund made a return of 21.4 per cent during the financial year ended, March 31, 2010, the Fund Manager considers it imperative to wipe out the accumulated deficit in the account before any distribution can be recommended. Consequently, he told the unit holders that the Fund regretted to announce that there will not be dividend distribution for the year ended March 31, 2010.

“It is our belief and hope that all the initiatives now in place will produce the needed returns which will afford us the opportunity to make dividend distribution at the next AGM,” he added.

The FBN Heritage Fund is a balanced mutual fund which invests in equities; investment grade fixed income securities (bonds and debentures) as well as money market instruments issued by reputable banks and financial institutions.