• Tuesday, March 05, 2024
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Meristem says dollar, fixed income funds generate 9.72%, 14.17% gross returns

Dollar nears N2,000 on black market as scarcity worsens

Meristem Asset Management has released its Funds performance report for January, noting that the Meristem Dollar Fund generated a gross return of 9.72 percent while the Fixed Income Fund generated a gross return of 14.17 percent for the period under review.

The Meristem Fixed Income Fund is an open-ended mutual fund launched on November 1, 2023.

Read also: Embarking on financial success: Introducing the Meristem Fixed Income Fund

The proceeds of the issue are invested in naira-denominated Fixed Income instruments with a tenor of more than 365 days (FGN Bonds, Corporate Bonds, State Bonds) and short-term instruments as may be decided by the investment committee.

The objective of the Fund is to provide long-term capital growth and regular income by investing in a diversified portfolio of fixed-income instruments. The fund’s average net return was 11.85 percent in January, while the benchmark average rate was 13.42 percent. In seeking to achieve fund objectives, the Fund Manager has set the target asset allocation within identified risk levels.

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The distribution of funds between asset classes may be an important factor in determining investment performance over time. In the event of extreme market conditions, the Fund Manager may revise the asset allocation to preserve the value of the Fund for the benefit of Unitholders.

The Meristem Dollar Fund is an open-ended mutual fund launched on December 11, 2023. The proceeds of the issue shall be invested in Investment grade sovereign and corporate Eurobonds, and other qualifying USD instruments issued by Nigerian entities as may be determined by the investment committee.

The objective of the Fund is to provide opportunities for investors seeking long-term capital preservation while providing liquidity and diversification.

For the month of January 2024, Meristem Dollar Fund recorded an average net return of 7.38 percent, while the fund’s benchmark average rate stood at 9.78 percent. In seeking to achieve fund objectives, the Fund Manager has set the target asset allocation within identified risk levels.

The distribution of funds between asset classes may be an important factor in determining investment performance over time.

In the event of extreme market conditions, the Fund Manager may revise the asset allocation to preserve the value of the Fund for the benefit of Unitholders.

The Meristem Money Market Fund aims to provide steady income to investors through short-term, high-quality money market instruments in Nigerian Naira while maintaining liquidity and stability of principal.

Its Gross Return dropped to 12.24 percent in January from 12.71 percent in December 2023, while the fund’s net return in January was 10.56 percent, down from 10.96 percent in December 2023. The fund’s benchmark average rate was 3.72 percent in January 2024 from 7.42 percent in December 2023.

The fund targets capital preservation and aims to provide returns in line with interest rates of money market instruments, with a minimum required return of the average 91-day Treasury Bill yield. It is authorised by the SEC and managed at the discretion of the investment team, with earned interest distributed to unitholders.

Meristem Equity Market Fund recorded a monthly return of 8.34 percent in January 2024 up from 7.45 percent in December 2023. The Meristem Equity Market Fund (MEMF) is an actively managed, open-ended collective investment scheme which aims to achieve long-term capital appreciation for its unitholders through investment in equity securities listed on the Nigerian Exchange (NGX).

The Fund seeks to outperform its benchmark gross of fees by taking advantage of the economies of scale that accompany the pooling of funds while relying on its quality research capabilities to identify outperforming stocks to be held by the Fund.