The eight-week volatility measure of Nigeria’s collective investment schemes (CIS) revealed approximately N2billion loss in the value of eight money market funds regulated by the Securities and Exchange Commission (SEC).
This huge value erosion is evident in the Net Asset Value (NAV) of money market funds as at week ended November 4, 2016 when compared to the week ended September 9, 2016. It declined from a record high of N105.796billion to N103.869billion, figures at the SEC showed. Money market funds are open-ended mutual funds that invest in short-term debt securities such as Nigerian Treasury bills and commercial papers. While equity based funds are mutual funds that invest principally in stocks.
Interestingly, within this eight-week period, the value of Stanbic IBTC Money Market Fund increased from N60.043billion to N64.616billion; the fund’s unit price stood at N100. On the contrary, the NAV of FBN Money Market Fund depleted remarkably from N29.554billion as at September 9, 2016 to N21.665billion as at week ended November 4, 2016. The fund’s unit price stood at N100.
The value of UBA Money Market Fund which stood at N357.628million as at September 9 rose to N364.729million as at November 4. The fund’s unit price stood at N1.05.
AIICO Money Market Fund also depleted from N671.503million to N666.864million; its unit price stood at N100. Meanwhile, the value of ARM Money Market Fund rose from N13.120billion to N13.157billion; its unit price remained at N1.
Meristem Money Market Fund with unit price at N10 also witnessed value increase from N347.780million to N351.048million in the eight-week period.
The Net Asset Value of AXA Mansard Money Market Fund which stood at N1.701billion with unit price at N1 decreased to N1.647billion; while that of Greenwich Plus Money Market Fund stood at N1.399billion with unit price at N100.
Likewise, there is well over N200million decline in the value of eleven SEC-regulated equity-based funds. From N13.701billion as at September 9, 2016, their net asset value reduced to N13.431billion as at November 4, 2016.
Within this period, the value of Stanbic IBTC Nigerian Equity Fund declined from N7.900billion to N7.798billion; Legacy Equity Fund also decreased from N493.133million to N489.029million; Frontier Fund increased from N209.575million to N211.720million; while the net asset value of Paramount Equity Fund appreciated from N168.207million to N168.564billion.
UBA Equity Fund valued at N1.249billion as at the base period decreased to N1.148billion as at November 4. ARM Aggressive Growth Fund also valued at N2.801billion increased marginally to N2.805billion; Nigeria Global Investment Fund valued at N125.838million decreased to N125.244million; FBN Nigeria Smart Beta Equity Fund valued at N155.736million increased to N159.401million; while Meristem Equity Market Fund valued at N212.629million decreased to N208.229million.
The Net Asset Value of Stanbic IBTC Aggressive Fund (Sub Fund) decreased from N282.907million to N213.195million; that of AXA Mansard Equity Income Fund increased from N101.178million to N104.049million in the review eight weeks period.
Iheanyi Nwachukwu
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