Equity-based funds’ value depletes further

The net asset value (NAV) of twelve equity-based funds regulated by the Securities and Exchange Commission (SEC) have depleted further. Figures at the SEC showed equity-based funds value shed of about N92million from a record high of N13.498billion as at August 5, 2016 to N13.406billion as at August 12.
This helped to push the value of Collective Investment Schemes (CIS) down from N245.605billion to N238.178billion, a decrease of about N7.427billion.
In the review period, the net asset value of Stanbic IBTC Nigerian Equity Fund declined from N7.79billion to N7.76billion; while that of Legacy Equity Fund rose from N480.357million to N481.638million.
The asset value of Frontier Fund, managed by SCM Capital Limited also declined from N207.360million to N206.773million; while Chapel Hill Denham managed Paramount Equity Fund slightly increased in value from N164.646million to N164.921million.
Domestic economic numbers released recently the National Bureau of Statistics (NBS) showed that in second-quarter (Q2) Gross Domestic Product (GDP) contracted to -2.1%.
Market watchers believe that for the rest of 2016, the performance of equity-based fund, like other naira asset classes hinges on the quality and timing of government’s response to the myriad of macro challenges currently rocking the domestic economy.
United Capital Equity Fund depleted from N1.152billion as at August 5 to N1.148billion as at the trading week to August 12. ARM Aggressive Growth Fund, an equity-based fund managed by Asset & Resources Management Company Limited depleted from N2.818billion to N2.773billion; while another Chapel Hill Denham managed fund, Nigeria Global Investment Fund grew in value from N119.173million to N122.650million.
FBN Capital Asset Management managed FBN Nigeria Smart Beta Equity Fund grew in value from N155.144million to N153.587million; while Meristem Wealth Management Limited managed equity-fund, Meristem Equity Market Fund depleted from N212.049million to N205.945million.
Stanbic IBTC Aggressive Fund (Sub Fund) managed by Stanbic IBTC Asset Management decreased in value from N297.943million to N278.554million; while AXA Mansard Equity Income Fund managed by AXA Mansard Investments Limited rose from N99.994million to a little above N100million.

 

Iheanyi Nwachukwu