ValuAlliance Asset Management Limited, manager of “Value Fund”, reported N169.2 million losses for six months ended December 31, 2018, indicating a 127.9 percent year-on-year contraction compared to N607.4 post-tax profit posted twelve months, triggered by N324.5 million fair value losses on equity instruments.
The fair value losses plunged 183 percent to N324.5 million compared with a gain of N391 million reported a year earlier.
The fund manager lost on fair value on 13 equities including Access Bank, Okomu Oil Palm and Seplat among others, out of 16 stocks, and this saw operating losses pile to N165.7 million against an operating income of N611.5 million posted in the similar period of 2017.
Fair value gains were recorded in stocks of Diamond Bank, Continental Reinsurance & Custodian & Allied Plc.
Revenue for the period stood at N136 million deficit, representing a whopping decline of 120.84 percent over N652.7 million obtained in the corresponding period a year earlier.
Earnings per share fell more than 128 percent to a loss of N5.27 in the period under review as against per-share profit of N18.93 a year earlier.
A total of N29.7 million were expended in the period under focus, an improvement over N41.2 million for six months ended December 2017, largely driven by N9.17 million reduction in other operating expenses.
The mutual fund holder reported N4.94 billion in total assets, which is 10.63 percent lower relative to N5.52 billion recorded in 2017 full year, driven by a drop in the financial assets at fair value.
Total liability, consisting payables and accruals settled at N21.6 million for the period, which is N2.9 million lesser than the figure for 2017 full year. Similarly, total equity dip by 10.62 percent to N4.92 billion against N5.5 billion recorded for 2017 full year.
Net asset value/unit, representing the value of a mutual fund scheme’s assets minus the value of its liabilities per unit, slumped by 10.63 percent to N153, 110 as against N171, 320 recorded in twelve months ended June 2018. This actually reflects an increase in the number of units held. Furthermore, market price per unit stood flat at N103, 200.
Total return, which represents all the income earned including interests, dividends, and capital gains, contracted by 8.16 basis percent points year-on-year to -3.04 percent as against 5.12 percent in the same period in 2017.
Total expense ratio, one of the parameters investors take into consideration before investing in the mutual fund scheme, grew to 1.54 percent in the reviewed period, and is 34 basis percent points higher than the figure for December 2017, thus signalling fewer profits on funds.
Annualized growth and holding period return rate stood at 11.28 and 116.97 percent respectively.
ValuAlliance Value Fund, (“The Value Fund”) is a closed-end unit Trust Scheme under the management of ValuAlliance Asset Management Limited with Leadway Capital and Trust Limited as Trustees.
It began operations in July 2011 and the units of the Fund are listed on the Exchange.
ISRAEL ODUBOLA
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