Lotus Capital debuts Halal ETF in Nigeria

Nigeria-based investment management firm Lotus Capital has listed the Lotus Halal Equity exchange-traded Fund, an Islamic exchange-traded fund (ETF), after receiving regulatory approval by the country’s Securities and Exchange Commission (SEC).

The Lotus Halal Equity ETF, Nigeria’s third, will track the NSE-Lotus Islamic Index (NSE-LII), which charts the performance of 15 screened equities listed on the country’s exchange including Cadbury Nigeria, Dangote Cement and Unilever Nigeria.

“The launch of this new ETF is in line with our commitment to provide alternative ethical investment solutions in Nigeria,” Hajara Adeola, managing director of Lotus Capital, told local newspaper IFN. “The new product will not only develop the capital market by increasing the diversity of instruments available, it will also increase the investment options available for investors seeking to invest in only ethical or Shariah compliant products.”

The ETF was listed on August 15 and will be open for subscription until September 11. Investors have the option to invest via cash or in-kind subscription exchanging stocks of the constituent companies of the NSE-LII for units of the fund.

The NSE-Lotus Islamic Index (NSE-LII) is an equity index that tracks the performance of selected Shariah-compliant and high-capped equities listed on the floor of the Nigerian Stock Exchange. The NSE-LII is composed of 15 screened equities with weights applied to component stocks and sub-sectors. The NSE-LII was launched in 2012 to track the performance of Shariah-compliant equities on the Nigerian Stock Exchange, and excludes banks, companies with high levels of debt or leverage and other stocks that conflict with Islamic principles.

The new ETF was listed alongside the NewGold ETF and Vetiva Griffin 30 ETF the other two tracking products available on the NSE.