A. Sub-national Bond
This is a long-term debt instrument (five years and above). Whenever a Sub-national issues Bonds in Nigeria, it is a statutory requirement to appoint a Bond Trustee as the representative of the Bondholders/Investors.
The role of the Bond Trustee in this instance includes management of the sinking fund, monitoring the projects/utilization of proceeds in the bond issuance exercise, safeguarding the interest of bondholders until redemption while holding on their behalf the security for the repayment of the principal and coupon in relation to the Bond.
At UTL, we handle this process efficiently by:
- Participating in the bond issuance process.
- Holding the security on behalf of the Bondholders.
- Computing the repayment adequacy.
- Managing the sinking fund.
- Ensuring the interest of Bondholders are adequately protected.
- Monitoring compliance of covenants by all the parties.
- Sustaining tax payer’s confidence in the project execution.
B.Collective Investment Schemes (CIS)
Collective Investment Schemes (CIS) are generally tax- exempt, pooled investment vehicles maintained and supervised by a Corporate Trustee. CIS combine assets from eligible investors into a single investment portfolio (or “fund”) with a specific investment strategy.
By pooling assets together, sponsors of CIS take advantage of the economies of scale to attain desired investments and reducing attendant expenses.
We work with the investors towards optimizing returns on CIS by rendering the following services:
- Offering an additional level of risk management as supervising Trustee.
- Ensuring compliance of all parties with the terms of the Trust Deed.
- Providing effective control over the affairs of the Trust on behalf of the Investors.
- Rendering periodic reports to the Regulator.
- Collaborating with the Investment Committee on the Investment Policy, guidelines and activities of the Fund.
- Ensuring the separation of the underlying portfolios and that the legal entitlement of investors to such portfolios is assured.
- Reviewing and reporting on the administration of the CIS by the Manager during each annual accounting period.