Economy
Real Estate Delivers 15.6% RoI for Risevest Investors
By Adedapo Adesanya
Real estate portfolio delivered the best return for investors on US stocks and investment platform, Risevest, in 2022, with a 15.6 per cent return on investment (RoI).
In its Investment Wrapped: A Look At Our Investment Journey in 2022 newsletter, seen by Business Post, the company said that the year’s investment was actively affected by inflation and the measures to tackle it.
The company, despite the tough year, paid out $23.2 million to users while 109,800 plans were created while its members in its investment club grew to 15,100.
“All the monetary easing that central banks worldwide did in response to COVID led to the worst inflation numbers in over 40 years. US inflation peaked at 9.1%, and the aggressive increase in interest rates by the US Federal Reserve and other major central banks led to the global increase in the cost of capital,” it explained.
It added that although inflation in the world’s largest economy dropped as rate hikes hit 5 per cent, the increased rates and higher cost of capital led to a massive drop in the valuations of stocks and other assets, leading to some of the worst stock markets drop in recent history.
This was coupled with the energy and wheat crisis caused by Russia’s invasion of Ukraine, as well as the meltdown in the crypto industry.
The company revealed that real estate markets, including Myrtle Beach South Carolina homes for sale, were strong for most of the year until the final quarter, delivering double-digit returns for the Rise portfolio.
Also, energy commodities were up in the review year, and energy stocks like ExxonMobil defied the downturn and gained 70 per cent, adding that, “all of that was overshadowed by what has been the 7th worst performance of the stock markets ever in history.”
After the real estate market, fixed income delivered a 10 per cent return for the year, providing much-needed returns to users and balancing out the losses from stocks that fell 22 per cent in the year.
Speaking on moves it made, the company, in the newsletter, revealed that it introduced Airbnb to its portfolio based on its seasonal advantage and consumer-driven demand.
“For real estate, we introduced Airbnb rentals to our portfolio. While they are much more hands-on than our traditional rentals, their returns, even after expenses, are much higher, making it well worth the experience.
“However, we will continue to invest in Airbnb rentals as a smaller component of our real estate strategy due to their seasonality and the risk of changes in consumer behaviour,” parts of the article read.
For stocks, the company noted that it exited companies without either significant growth or cash-flow generation capabilities and, moving forward, will prioritise defensive companies with strong demand profiles and solid balance sheets.
“We held onto some tech companies like Facebook (Meta) and Google, who still present a lot of value despite deep sentiment against them, and we added new positions in both short and long-term bets that will pay off when stocks rebound.”
For the fixed-income portfolio, the overall fixed-income market saw relatively stable returns, with the Bloomberg Barclays U.S. Aggregate Bond Index returning 4.26 per cent and our portfolio delivering 10 per cent for the year.
“Our portfolio has a good representation of (third-party provided) consumer credit and mortgage-backed fixed-income assets and an increasingly smaller position in emerging market sovereign debt. Despite a tough market position, credit and debt profiles remain relatively stable.
“Also, with higher interest rates, it’s becoming increasingly possible to move up the risk ladder into even safer fixed-income assets without sacrificing returns, which is great news,” it said.
Presenting its outlook for the year, it said that looking at a possible recession, weakened demand, and a lean global supply chain, it expects a tougher first half and advised more people to “keep their budgets lean, emergency funds funded, and their investment plans disciplined.”
Product-wise, Risevest said “multi-year asset class plans are on the way, as well as varied account types. Multi-country support and a slew of new features, including dark mode, potential localised offerings, and more personalization, should also be expected to support our users’ financial journeys and unlock more wealth-creating opportunities for all Risers.”
By Modupe Gbadeyanka
The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.
In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.
A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.
To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”
“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.
It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”
“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.
“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.
“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.
“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.
By Adedapo Adesanya
Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.
The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.
Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.
Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.
Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.
The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.
By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.
By Dipo Olowookere
It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.
The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.
Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.
Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.
At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.
This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.
VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.
In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn