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Funds Management

These two mutual funds will pay dividends to its investors.

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Unlike regular equity securities that pay dividends, mutual funds make or pay distributions. Though the name may differ, the substance is the same.

The only difference is that the declaration and payment of dividends by companies is optional as it depends on the management of the company to decide to declare and pay dividend or to plough back the money into the company’s business, whereas, in mutual funds,most laws require that distributions be made at least once a year and most fund prospectuses contain information on the frequency of payment.  

So, when you invest in mutual funds, you are almost always sure to receive a distribution each year, unlike equity investments.

Unfortunately, not all mutual funds in Nigeria have lived up to that avowed obligation. One of those that have been faithful with distribution payment is the DV BALANCED FUND.

In its latest distribution notice, the fund manager announced that it has decided to pay a distribution of ₦23 per unit to unit holders whose names appear in the register of unit holders of the fund as at 5.00 pm on Tuesday April 24th, 2018.

Consequently, the register would be closed at 5.00 pm on Tuesday April 24th, 2018 in preparation for the payment scheduled to take place on Friday, April 27th, 2018. The fund had paid ₦2.00 as interim distribution earlier in the year.

It will be recalled that the fund made a final payment of ₦.02 per unit in June 2017 after an interim payment of ₦.50 per unit in February same year. In 2016 also, the fund paid ₦.10 in December as final payment.

About DV Balanced Fund

The DV Balanced Fund is an open-ended mutual fund that seeks to invest in a range of securities, including quoted equities, fixed income securities and money market instruments. Using an asset mix strategy that aims to achieve consistent growth primarily from a well-diversified portfolio of stocks and mitigate volatility associated with Nigerian equities market, the fund places itself in a strategic position to keep up the distributions.

The fund launched on August 26th, 2014 at a price of ₦100 per share but is now valued at ₦112.24, representing an inception to date unrealized capital gain of 12.43%.  If you had invested in the fund at launch date, you would have recovered ₦25.62 of your initial investment through the distributions.

The fund, whose investment strategy is the selection of securities based on a detailed investment policy focused on value investing, return/yield maximization, prudent diversification and risk management, is suitable for prudent investors with medium risk appetites who wish to achieve capital appreciation over time, especially investors with medium to long term investment horizons. The fund charges a 1.5% management fee and a 1% penalty if you redeem within 90 days of investment.

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ACAP Income Fund Too

In the same vein, ACAP Income Fund, for the third consecutive quarter, distributed 13% income to existing shareholders for the quarter ended December 31st, 2017 in fulfillment of the fund manager’s commitment to deliver a minimum of 13% payout to fund holders. For those holders whose registrations are not up to date, the distribution would be reinvested into the fund for them.

About ACAP Income Fund

ACAP Income Fund is managed by Alternative Capital Partners Limited and it invests in guaranteed fixed income and money market securities. Its objective is to encourage savings and investment culture with competitive returns above conventional savings products. It takes ₦5,000 to invest in ACAP income fund.

The fund recorded a performance of 81% in 2017 and is currently returning 4.2% in 2018. ACAP Income Fund was originally known as BGL Nubian Fund, but was taken over by Alternative Capital Partners Limited following approval from shareholders in March 2017.

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Uchenna Ndimele is the President of Quantitative Financial Analytics Ltd. MutualfundsAfrica.com and mutualfundsnigeria.com (both Quantitative Financial Analytics company website) is a leader in supplying mutual fund information, analysis, and commentary on African mutual funds. We provide reliable fund data; and ratings information that will add value to fund managers, the media, individual investors and investment clubs.

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Funds Management

Nigeria’s Best performing Mutual Funds in Q1 2021

The Net Asset Value of the listed Nigerian Mutual Funds dipped by 4.01% in Q1 2021

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Best Mutual Funds in Nigeria

Mutual Funds in Nigeria recorded a bearish performance in the first quarter of 2021 as only 25 funds posted positive growth in the review month against 59 declines while 34 funds remained flat in March.

Mutual funds have been considered as a good alternative investment opportunity, particularly for retail investors because it gives them access to diversified and professionally managed portfolios at a low price.

However, data obtained from the Security and Exchange Commission revealed that on average, the 118 listed funds as of 31st March 2021, dipped by 1.91%, having recorded a similar decline in the month of February.

  • Also, the net asset value declined by 4.01% from N1.57 trillion as of 31st December 2020 to N1.51 trillion as of 1st April 2021.
  • This is could be partly attributed to the bearish performance recorded in the Nigerian Stock Exchange market as data from the NSE showed that the All-Share Index dipped by 3.63% year to date as of April 1, 2021.
  • A comparison of the performance of the fund types indicated that despite the fall in total net asset value in Q1 2021, Bond funds grew by +14.82%, Ethical funds by +12.95%, Fixed income funds by +12.91%.
  • Real estate funds and infrastructure funds grew marginally by +0.69% and +0.43% respectively. Other funds recorded losses with the money market funds recording the highest loss of -20.68%.

Nairametrics tracked the performance of these mutual funds by comparing the fund prices as of 31st December 2020 with the fund prices as of 1st of April 2021.

Below were the top-performing mutual funds in Q1 2021. We also highlighted their performance in terms of changes in net asset value and included profiles of the funds as described on their websites.


ARM Ethical Fund – Asset & Resources Mgt. Company Ltd. (Ethical Funds)

The ARM Ethical Fund is suitable for Islamic investors who want long-term capital growth by investing strictly according to the principles of Islamic finance and ethical values. The Fund invests only in investments screened by a Shari’ah Advisory Board.

It invests in equities, real estates, and other investments that do not involve interest-bearing transactions.

December 31st, 2020

Fund Price – N35.46

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April 1st, 2021

Fund Price – N36.55

Return – 3.06%

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Ranking – Fifth

Commentary: The ARM Ethical Fund was the fifth-best performing fund in the first quarter of the year. The unit price appreciated by 3.06% while the net assets value increased by 3.15% from N358.96 million as of 31st December 2020 to N370.27 million as of 1st April 2021.


Vantage Dollar Fund – Investment One Funds Management (Fixed Income Fund)

Vantage Dollar Fund is an open-ended Unit Trust Scheme by Investment One Funds. The Fund seeks to provide investors with a bias for Dollar-denominated securities and access to such securities, which ordinarily would be inaccessible to them by virtue of the minimum amount typically required to make such investments.

December 31st, 2020

Fund PriceN502.90

April 1st, 2021

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Fund PriceN518.95

Return – 3.19%

Ranking – Fourth

Commentary: The Ventage Dollar fund performed as the fourth-best performing fund in the first quarter of the year. The unit price appreciated by 3.19% while the net assets value declined by -2.97% from N1.85 billion as of December 31st, 2020 to N1.79 billion as of April 1st 2021.

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FSDH Dollar Fund – FSDH Asset Management Ltd. (Fixed Income Funds)

This is an open-ended mutual fund that invests in US Dollar denominated Fixed Income Securities issued by Nigerian Sovereign and Corporate Entities. The objective of the fund is to provide customers with the opportunity to invest in dollar-denominated instruments.

The minimum amount required to invest in the fund is $1,000.

December 31st, 2020

Fund Price – N415.10

April 1st, 2021

Fund Price – N431.44

Return – 3.94%

Ranking – Third

Commentary: The FSDH Dollar Fund was the third best performing fund in the first quarter of the year. The unit price appreciated by 3.94% while the net assets value increased by 41.99% from N846.27 million as of December 31st, 2020 to N1.2 billion as of April 1st 2021.


FBNQuest Asset Management Limited – Institutional (Bond Funds)

The FBN Nigeria Eurobond (USD) designed for institutional investors is also invested in US Dollar-denominated debt instruments issued by the Nigerian government and reputable corporate institutions and managed by FBNQuest Asset Management Limited.

To begin investment as an institutional investor, a minimum of $100,000 is required for a minimum tenor of 180 days.

December 31st, 2020

Fund Price – N49,283.56

April 1st, 2021

Fund Price – N51,682.31

Return – 4.86%

Ranking – Second

Commentary: The FBNQuest Asset Management Limited bond funds created for institutional investors was the second best performing fund in the first quarter of the year. The unit price appreciated by 4.86% while the net assets value increased by 5.69% from N571.01 million as of December 31st, 2020 to N603.51 million as of April 1st 2021.


FBNQuest Asset Management Limited – Retail (Bond Funds)

The FBN Nigeria Eurobond is a fixed income mutual fund that invests in the US Dollar-denominated debt instruments issued by the Nigerian government and reputable corporate institutions. Investments can be made into this fund by both retail and institutional investors.

To get started as a retail investor, a minimum investment of $2,500 is required and the minimum holding period is 180 days.

December 31st, 2020

Fund Price – N49,346.65

April 1st, 2021

Fund Price – N51,751.89

Return – 4.87%

Ranking – First

Commentary: The FBNQuest Asset Management Limited bond funds created for retail investors was the First best performing fund in the first quarter of the year. The unit price appreciated by 4.87% while the net assets value increased by 18.29% from N4.57 billion as of December 31st, 2020 to N5.41 billion as of April 1st 2021.


Bubbling under

  • Legacy Equity Fund – 1.95%
  • PACAM Equity Fund – 1.81%
  • Stanbic IBTC Shariah Fixed Income Fund – 1.66%
  • AVA GAM Fixed income Dollar Fund – 1.65%
  • United Capital Fixed – 1.51%

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Funds Management

Best Pension Funds in Nigeria for the month of March 2021

Nigerian Pension Fund administrators in the month of March 2021, recovered from the downturn recorded in February to post marginal growth.

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Pension plan participation among Nigerians increases

Nigerian pension funds asset recorded tepid growth in the month of March, recovering marginally from the negative growth recorded in the previous month, as 81.25% of the total funds recorded positive growth against 22% recorded in February.

This is according to data tracked by Nairalytics Research on the fund performances of Nigerian Pension Funds Administrators.

A cursory look at the data revealed that the RSA Fund IV on average performed the best in March, followed by RSA Fund III, while RSA Fund I remained flat in the review month.

Nairametrics considered the prices of the different RSA funds as of 28th February 2021 and compared them with the prices as of the last day of March (31st March 2021).

READ: Pension asset increases to N9.33 trillion – PenCom

Below is a list of the best-performing funds in March


RSA Fund I

This fund has the highest allocation of risky or variable income instruments and participation is strictly upon a formal request from a contributor. The RSA Fund I is suitable for people who want to invest in high-risk instruments with higher rewards. Hence, contributors who are 50 years and above cannot apply to be moved into this fund.

According to available data 9 of the funds recorded positive growth in the month under review, as against 1 recorded in the previous month.

First position: Crusader Sterling Pensions Limited

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  • March return: 0.68%

Second position: ARM Pension Managers Limited

  • March return: 0.52%

Third position: FCMB Pensions Limited

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  • March return: 0.44%

Others on the list of gainers include; Premium Pension Limited, Trustfund Pensions Plc, Pensions Alliance Limited, Stanbic IBTC Pension Managers, NPF Pensions Limited, and Sigma Pensions Limited.

It is noteworthy that Investment One Pension Managers and Veritas Glanvills Pensions were not included in the analysis, as their information could not be obtained, as at the time of writing this article. Considering the aggregate performance of the fund, it stood flat at 0%.

READ: NLPC, Investment One and OAK PFAs generate highest ROI in three RSA funds for 11 months

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RSA Fund II

This fund is balanced and suitable for middle-aged contributors as well as those with a medium risk appetite. It is designed to be less risky with reduced allocation to variable income instruments compared to Fund I. The age requirement for participation is 49 years and below.

First position: Crusader Sterling Pensions Limited

  • March return: 0.65%

Second position: FCMB Pensions Limited

  • March return: 0.63%

Third position: ARM Pension Managers Limited

  • March return: 0.6%

Others on the list, which recorded positive growth in the month of March include; Leadway Pensure PFA, Nigerian University Pension Management, Trustfund Pensions, Pensions Alliance, Sigma Pensions Limited, Stanbic IBTC, and Radix Pension Fund Managers.

Of the 20 funds considered in the analysis, 16 recorded positive growth in value, representing 80% of the total. Meanwhile, it is noteworthy that as with the case in the RSA fund I category, Investment One Pension Managers and Veritas Glanvills Pensions, were not included.

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The aggregate performance of the RSA Fund II, stood at 0.29% in March 2021.


RSA Fund III

This is a conservative fund that is designed for contributors close to retirement and contributors with a low-risk appetite. It is suited for contributors between the ages of 50 and 60 years. However, younger contributors may opt to participate in this fund category.

First position: APT Pension Fund Managers Limited

  • March return: 1.17%

Second position: Crusader Sterling Pensions Limited

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  • March return: 0.73%

Third position: Pensions Alliance Limited

  • March return: 0.66%

In this category of funds, all the pension funds posted positive growth in the month of March, with the exception of Investment One and Veritas Glanvills, which were not included in the analysis. The aggregate RSA Fund III, appreciated by 0.47% in March 2021.


RSA Fund IV

The RSA Fund IV is exclusively for retirees. In the month of February, of all 22 Pension Fund Administrators, 10 of them recorded positive growth. However, they were all marginal growth of less than 1%.

First position: Pensions Alliance Limited

  • March return: 0.74%

Second position: First Guarantee Pension Limited

  • March return: 0.74%

Third position: Crusader Sterling pensions Limited

  • March return: 0.71%

Similarly, as witnessed in the RSA Fund III category all but AIICO Pension Managers recorded positive growth in March 2021, a recovery compared to the previous month. In terms of the aggregate performance, RSA Fund IV grew by 0.5% in the month under review.

According to the monthly report from the National Pension Commission, the total Pension Fund assets declined in the month of February 2021 from N12.3 trillion recorded as of 31st January 2021 to N12.25 trillion. This could be attributed to the bearish performance of the various funds in February 2021.

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