Notes to the Financial Statements

for the year ended March 31, 2009

5. Managed Funds

	The Group		The Bank
	2009 N'million	2008 N'million	2009 N'million	2008 N'million
Bank balances	449	1,989	-	-
Quoted investments market value N15 billion (2008 – N72 billion)	38,651	41,367	-	-
Treasury bills	-	11	-	-
Bankers acceptance	18,617	12,597	-	-
Government bonds	23	23	-	-
Managed real estate investment	650	-	-	-
Others	10	34	-	-
	58,400	56,021	-	-
Provision for diminution in value of investments
– Managed funds (note 5.1)	(21,506)	-	-	-
	36,894	56,021	-	-

This represents funds and deposits received from corporate and individual clients for investments, under mutually agreed terms.

 

5.1 Exceptional item – Provision for diminution in value of investments

	The Group		The Bank
	2009 N'million	2008 N'million	2009 N'million	2008 N'million
Managed Funds – (note 5)	21,506	-	-	-
Own investments – (note 6.8)	4,607	-	-	-
	26,113	-	-	-

First Trustees Nigeria Limited, in the ordinary course of business, inter alia, manages funds on behalf of various clients for investment purposes. During the year the investments in quoted securities suffered a diminution in value as a result of the situation in the Nigerian Capital Market, occasioned by the Global Credit crises and recession in world economies.

The company has therefore made provision for this diminution in value amounting to N21,506,278,438 for shares held on behalf of clients under a guaranteed principal fund agreement, and N4,606,955,000 on account of its own direct investments. This amount has been charged to the Profit and Loss account as exceptional item.

As at 31 March, 2009, the market value of shares on behalf of clients amounted to N8,534,520,381 (Cost: N30,040,798,819) and the market value of own investments was N4,336,497,164 (Cost: N8,949,115,312).

Subsequent to the balance sheet date, there has been some price appreciation in the capital market, which reduces the amount of probable loss.