UBA Mutual Funds Delight Investors with High Returns

Mutual funds managed by UBA Asset Management Limited (UAML) recorded improved performances and declaring dividends to unit holders for the year ended March 31, 2013. UAML has four mutual funds namely: UBA Money Market Fund (UMMF), UBA Balanced Fund(UBAF),UBA Bond Fund(UBF) and UBA Equity Fund(UEF).

Speaking at the annual general meeting (AGM) of unit holders of the funds in Lagos yesterday, the Managing Director/Chief Executive Officer of UAML, Modupe Mujota, said   all the funds closed the year higher.

According to her, UEF recorded the highest return of 39 per cent, followed by UBAF with a return of 36 per cent. UMMF and UBF returned 14 per cent and 13 per cent respectively.

She said the UEF, for instance, opened the year at N0.8207 but close at N1.1846, translating into gross return of 39 per cent.

“The outstanding performance of the fund was driven largely by the strong bullish run in the equity market over the period. While we were conservative in our allocation in line with the investment policy objectives, our selection within the equity market and investment in high yield ensured the appreciable performance of the fund, ”Mujota said.

Regarding the UBF, she said it opened with an offer price of N1.1527 and closed at N1.3945, which translated into 36 per cent and paid a 10 kobo dividend.
She said the fund outperformed its peers and benchmark for balanced funds due largely  to significant portion of the fund’s exposure  to equities in the financial year.

The UAML boss added that the UMMF ended the year with a gross return of 14 per cent after paying a dividend of eight kobo per unit, while UBF ended with a return of 13 per cent and paid a dividend of 10 kobo.

According to her, the relative low performance of   UBF is largely due to the hold to maturity strategy.

“Most of the assets were carried over at low yield since 2010. Thus the fund manager aims to have a more active strategy that will ensure long position in high yield instruments, going forward as new contributions are used to lock in currently high yields in the market,” she said.

As preparations for the celebration of  Christmas  continue, Mujota advised investors that they embrace a gift that can keep on giving.
“The best kind of gift you can give during this Yuletide  is  a gift that keeps on giving. And a gift that keeps on giving is an investment in UBA mutual funds. Invest now,” she declared.