Equity-based funds, money market funds, real estate funds, balanced-based funds, ethical funds, sector funds are major asset classes that contributed to the asset value decline of mutual funds between August 8 and 15, 2014. On the contrary, asset value of bond funds, and umbrella funds increased.
Data on the net asset values and unit prices of fund management and collective investments schemes (CIS) as of week ended August 15, 2014, show that the net asset value (NAV) of mutual funds declined from N184.656 billion as of August 8, to N183.400 billion as of August 15.
In the review period, the asset value of equity based funds declined from N45.072 billion to N44.026 billion; that of money market fund decreased from N59.518 billion to N59.121 billion; asset value of bond fund rose from N16.533 billion to N16.985 billion, while value of real estate fund asset declined from N44.312 billion to N44.304 billion.
More so, balanced-based funds recorded net asset value decline from N8.916 billion to N8.770 billion; that of ethical funds decreased from N6.761 billion to N6.674 billion; sector fund asset value was down from N1.082 billion to N1.040 billion, while umbrella fund achieved growth in asset value from N2.460 billion to N2.478 billion.
Net asset value represents a fund’s per share market value. It is derived by dividing the total value of all the cash and securities in a fund’s portfolio, less any liabilities, by the number of shares outstanding. Fund’s NAV are important to investors, because it is from NAV that the price per unit of a fund is calculated.
Equity based funds
Looking at the performance of funds in this basket, it shows that the asset value of Stanbic IBTC Nigerian Equity Fund, which is managed by Stanbic IBTC Asset Management Limited, declined from N14.123 billion to N13.897 billion.
The fund’s unit price had declined from N11, 722.58 to N11, 534.45, figures at the Securities and Exchange Commission (SEC) showed. In addition, the asset value of ARM Discovery Fund, which is managed by Asset and Resources Management Company Limited, declined from N5.258 billion to N5.173 billion.
The fund’s unit price dipped from N342.0937 to N336.9892. Our check also shows that Coral Growth Fund, which is managed by FSDH Asset Management Limited, recorded asset value decline from N3.810 billion to N3.766 billion. Its unit price declined from N2, 592.33 to N2, 561.95.
The asset value of Nigeria International Growth Fund, managed by Investment One Financial Services Limited, dropped from N2.106 billion to N2.087 billion. The fund’s unit price had also dropped from N1.86 to N1.84. Legacy Fund, managed by First City Asset Management plc, recorded asset value decline from N960.370 million to N939.728 million, as its unit price dipped from N1.49 to N1.46 as of the week ended August 15.
Also, IMB Energy Master Fund, which is managed by First City Asset Management plc, saw its asset value down from N650.522 million to N627.460 million, as unit price of the fund dropped from N2.80 to N2.78. Likewise, Frontier Fund, a fund under the management of Sterling Capital Market Limited, recorded asset value decrease from N183.132 million to N179.80 6million; the fund’s unit price dropped from N123.74 to N120.90.
Paramount Equity Fund, a fund managed by Chapel Hill Denham Management Limited, also followed the same trend like other equity based funds. The asset value of Paramount Equity Fund declined from N263.862 million to N254.965 million, as its unit price dipped from N14.69 to N14.19.
For the UBA Equity Fund, managed by UBA Asset Management Limited, its asset value declined from N1.720 billion to N1.538 billion; the unit price of this fund moved down from N1.03 to N0.92. ARM Aggressive Growth Fund, which is managed by Asset and Resources Management Company Limited, recorded asset value decline from N4.279 billion to N4.181 billion; the fund’s unit price also dropped from N17.47 to N17.11. ACAP Canary Growth Fund, managed by Alternative Capital Partners Limited, recorded decline in its asset value from N1.392 billion to N1.382 billion; as it unit price remained at N0.70.
Further in the week to August 15, Anchor Fund, managed by FBN Capital Asset Management, recorded decline in its asset value from N88.945 million to N88.369 million; the fund’s unit price was unchanged at N1.11 against the preceding trading week. Another equity fund under the management of FBN Capital Asset Management is Bedrock Fund which its asset value dropped from N186.365 million to N181.649 million; the fund’s unit price dropped from N1.12 to N1.10.
The asset value of Zenith Equity Fund, managed by Zenith Asset Management Limited, declined from N4.452 billion to N4.133 billion; the fund’s unit price was down from N15.88 to N15.39. Afrinvest Equity Fund, managed by Afrinvest Asset Management, recorded growth in its asset value from N480.480 million to N481.540 million; its unit price dropped from N169.15 to N168.40.
Looking at BGL Nubian Fund, which is managed by BGL Asset Management Limited, the asset value of the fund dropped from N270.070 million to N265.389 million; its unit price also declined from N1.16 to N1.14.
In addition to the aforementioned equity-based funds, the asset value of SIM Capital Alliance Fund, under the management of SIM Capital Alliance Limited stood at N4.845 billion same as in the preceding trading week; also its unit price remained at N103.24.
Money market fund
Looking at the basket of money market funds in the period under review, its shows that Stanbic IBTC Money Market Fund, managed by Stanbic IBTC Asset Management Limited, recorded growth in asset value from N27.701 billlion to N27.706 billion; its unit price is N100. FBN Money Market Fund, managed by FBN Capital Asset Management Limited, recorded decline in net asset value from N27.037 billion to N26.761 billion; unit price remained at N100.
Further look at the data shows that UBA Money Market Fund, managed by UBA Asset Management Limited, its net asset value recorded a decline from N192.102 million to N173.704 million; unit price of the money market fund dropped from N1.18 to N1.07. Another money market fund is ARM Money Market Fund, managed by Asset and Resources Management Company Limited, which its asset value dipped from N4.586 billion to N4.479 billion; unit price remained at N1 against the preceding trading week.
Real estate fund
In the real estate fund basket, Skye Shelter Fund, a fund managed by SFS Capital Nigeria Limited, recorded net asset value growth from N2.335 billion to N2.336 billion. The unit price of the fund stood at N100 same as in the preceding trading week.
Union Homes REITS, managed by Union Homes Saving and Loans, recorded decline in net asset value from N13.477 billion to N13.475 billion; unit price of the fund also remained at N50. The UPDC Real Estate Investment Fund, managed by FSDH Asset Management Limited, also recorded a decline in its net asset value from N28.499 billion to N28.492 billion; unit price of the fund remained at N10.68, same as in the preceding trading week.
Iheanyi Nwachukwu
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