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What is Lotus Capital?
Lotus Capital, the leader of interest-free finance in Nigeria, offers halal investments to its clients. It was established in 2004 and registered with the Securities and Exchange Commission (SEC) as Fund managers in 2006. Over the last 15 years, Lotus Capital has made outstanding contributions to the growth of non-interest finance in the Nigerian capital market with the help of an accomplished board, experienced team, and Shariah advisory board.
Lotus Capital Limited persistently helps its clients to achieve their investment goals in line with their values. The company provides full-service ethical investment services specializing in Asset Management, Private Wealth Management, and Financial Advisory services. Lotus Halal Investment Fund offers its services specifically for investors who seek moderate risk and medium to long-term investment options. The Fund provides attractive returns investing in a broadly diversified portfolio of equities, real estate, and other asset-backed investments which are Shariah-compliant.
How Lotus Capital Halal Investments Work
Evidently, Lotus Capital’s investment strategy works in line with Fiqh, the principles of Islamic law. So, the main principle of Lotus Halal investing is that they focus is on companies with low interest–yielding debt, a high percentage of core business earnings (non-interest), and good working capital efficiency, among other criteria. Halal Investment Fund does not invest in pornography, tobacco, ammunition, alcohol, conventional banking & insurance, and interest-bearing securities. Besides regular audits, independent Shari’ah Advisory Board reviews and audits Lotus Capital. This process ensures that Lotus does not use funds for haram activities and instructs the development of new Islamic products. Shari’ah Advisory Board Members are Islamic scholars who are well-known in the Islamic world. Indeed, Board scholars confirm if the proposed investment options comply with Islamic laws.
Islamic Mutual Funds At Lotus
In 2008, Lotus launched the first Islamic mutual Fund, the Lotus Halal Investment Fund. Currently, it manages three mutual funds registered on the Nigerian Stock Exchange, and it handles the largest Islamic Mutual Fund in the country. At present, the company has offices in Lagos, Abuja, and Kano.
In 2013, Lotus acted as the lead advisor of the first Sukuk in Nigeria. The Osun State government issued this Sukuk and 11.4% oversubscribed. Furthermore, Lotus was appointed as financial advisers to Nigeria Federal Government on issuing the first three sovereign Sukuk in 2017-2020, all of which were oversubscribed.
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