THE NATIONAL Investment Fund Holding Company (NIF) closed 2024 with higher income but a weaker portfolio valuation, as it contended with continued market volatility and falling share prices across key holdings on the local stock exchange.
In its annual report for the year ended December 31, 2024, NIF reported a 72 per cent rise in net income to $145.2 million, driven by an $87.7 million or 27 per cent increase in dividend income, alongside higher interest earnings.
Total dividend income climbed from $324.1 million in 2023 to $411.8 million, bolstered by improved payouts from its investee companies.
Republic Financial Holdings, the largest component of NIF’s portfolio, paid total dividends of $5.70 per share in 2024, a 9.6 per cent increase from $5.20 in the previous year.
Trinidad Generation Unlimited (TGU) raised its dividend from $0.36 to $0.49 per share, while Angostura Holdings declared $0.38 per share, up 8.5 per cent.
West Indian Tobacco paid $0.87 per share, improving from $0.78, and One Caribbean Media distributed $0.21 per share, a marginal increase over the $0.20 paid in 2023.
Despite these gains, the overall value of NIF’s investment portfolio declined to $7.7 billion, down 11 per cent from $8.66 billion a year earlier.
The downturn reflected the broader slide in equity values on the TT Stock Exchange, where the composite index fell by 13 per cent and the all T&T Index by 14 per cent over the same period.
The fair value of the NIF1 investment portfolio dropped from $7.85 billion at the end of 2023 to $6.95 billion at December 31.
The decline was attributed to share price depreciation in Angostura, Republic Financial Holdings, West Indian Tobacco and One Caribbean Media.
Even so, the company maintained an asset-to-debt coverage ratio of 1.8:1, regarded by management as a healthy buffer for bondholders.
[caption id="attachment_1152053" align="alignnone" width="1024"] NIF chairperson Jennifer Lutchman. -[/caption]
Chairperson Jennifer Lutchman, in her annual statement, acknowledged the mixed outcome.
"The NIF1, a well-balanced portfolio, has been experiencing steady dividends which when combined with NIF2 amounted to $411.8 million in 2024, an increase of $87.7 million or 27 per cent from the $324.1 million earned in the prior year," she said.
The launch of the NIF2 bond in January 2024 marked a significant milestone for the company.
The $400 million bond, backed by 6.5 million Republic Financial Holdings shares, was aimed at individual and small business investors and was oversubscribed by 267 per cent.
It was listed on the stock exchange in March 2024, with cumulative trading volumes of $2.6 million by year-end.
NIF2’s investment portfolio, valued at $803.4 million at its launch, declined to $741.7 million by December 31, 2024, mirroring the fall in Republic Financial Holdings’ share price.
Nevertheless, NIF reported a coverage ratio of 1.85: 1 for NIF2, with all coupon payments made on schedule.
Dividend income from NIF2 totalled $37.3 million for the year, bas
