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FBN Capital Asset Management Limited recorded the highest year-to-date (YTD) total return among its peers listed on the Security Exchange Commission (SEC).
This analysis was done following an adjustment of its dividend of N11 paid in March 2018. When this is added to its returns of -1.0 percent as analysed by BusinessDay, it gives a total YTD return of 5.4 percent covering the period between January and June 1st 2018.
This was not different for First City Asset Management plc Legacy Equity Fund as it had a YTD return of -5.59 percent in the period under review. Although, when adjusted with its dividend of 12 Kobo which the equity fund paid in January 2018, a total YTD return of 2.32 percent was recorded for the fund.
Only the two funds were analysed with dividend adjustment among the initial 10 registered funds surveyed in BusinessDay’s article published last week Wednesday 13, June 2018, with the headline; Stanbic IBTC aggressive fund, United Capital, ARM lead equity funds performance in 2018, owing to the availability of data on the paid dividend of the funds.
Meanwhile, the Nigerian Stock Exchange (NSE) all share index return for the period was reported to be -3.73, and it is the benchmark with which this analysis was carried out.
Other funds that had returns above the NSE all share index in the period under review were; Stanbic IBTC aggressive fund with a 3.82 percent, United Capital asset management Ltd equity fund (+ 3.22%), ARM aggressive growth fund (+0.36%), Stanbic IBTC Nigerian equity fund (-0.13%),and AXA Mansard investment Limited (-3.65%).
Although the dividend data of these funds were not available to BusinessDay as at the time of this report, and as such dividend adjustment were not carried out on the funds’ returns.
Analysts however linked the performance of the listed equity funds that outperformed the NSE all share index in the period to being exposed to growth stocks. Investment by these funds in instruments that had very strong potential was another reason cited by analysts for the bullish returns.
Meanwhile, the sizes of an equity fund is determined by a market capitalization, while the investment style, reflected in the fund’s stock holdings, is also used to categorize equity mutual funds.
An equity fund is therefore a mutual fund that invests principally in stocks. It can be actively or passively (index fund) managed. Equity funds are also known as stock funds.
