United Capital Asset Management mutual funds have recorded significant growth despite the COVID-19 pandemic that has affected the economy and headwinds in the financial markets. Data made available showed that the funds surpassed the market realities and beat the benchmarks.
According to the fund managers, all our funds are actively managed to generate alpha regardless of the market conditions. For instance, the current return on the United Capital Money Market Fund is 5.7 per cent, which is better two per cent yield on the 91-day Treasury Bill in the secondary market.
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Also, the United Capital Bond Fund and Eurobond Funds’ yields stand at 8.9 per cent and 6.9 per cent compared to benchmark returns of 6.0 per cent and 3.0 per cent respectively. The benchmark for the two funds are 3-year average FGN Bond yields and LIBOR+2 per cent respectively.
The company said the funds grew mainly on the back of its robust distribution network. “We have been able to complement our physical touchpoints with effective online sales model that allows clients to subscribe and redeem funds seamlessly. Our superior returns also set us apart our funds continued to return above industry average and benchmarks. For our Eurobond Fund, another key driver of the growth was investors demand for FCY due to the weak outlook for the naira especially amidst the pandemic. We have also maintained a strong A credit rating for our Money Market Fund, which gives investors comfort in investing in our funds,” the firm explained.
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Commenting further, the Managing Director/CEO United Capital Asset Management, Odiri Oginni, the firm has constantly supported its clients on their journey to financial independence through our mutual funds. “Our mutual funds have grown much faster than the overall market in the last 18 months while returns on the funds consistently outperformed benchmarks, placing us amongst the top five Asset Managers by mutual funds size in the market. We hope to continue in this streak and even surpass it in the months and years ahead,” he said.
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Also commenting, the Group Executive Director, United Capital Plc, Sunny Anene, stated: “the strong growth in the funds under management of our Asset Management subsidiary points to a high level of investor confidence in our brand as we continue to reward our clients with above-market returns regardless of challenges in the market. With an investment-grade credit rating, asset under management in excess of N150 billion, cutting across privately managed funds and 6 collective investment schemes, we remain positioned as a fund manager of choice in Nigeria today.”