A review of offer prices of active mutual funds on memorandum quotation on the Nigerian Stock Exchange last week showed that both equity-specific and mixed mutual funds have recorded significant depreciation, although equity-specific funds were hard-hit.

The review showed UBA Equity Fund, an equity-specific mutual fund, with the highest depreciation of 30.6% dropping from its opening offer price of N1.57 per unit to N1.09 per unit. Legacy Fund, managed by FCMB, followed with a loss of 20.3% with an offer price of N1.37 as against its 2008 opening offer price of N1.71 per unit. UBA Balanced Fund, a mixed equity and fixed-income securities mutual fund, dropped by 17.6% to N1.22 per units compared with its opening price of N1.48 per unit. Stanbic IBTC Nigerian Equity Fund, probably Nigeria’s most successful mutual fund, recorded a drop of 16.1% from opening price of N12, 399.01 per unit to N10, 396.93 per unit.

The ARM Discovery Fund, under the management of ARM, also retreated by 11.4%. Coral Growth Fund, managed by FSDH Asset Management Limited, recorded a loss of 10.4% while Sterling Capital’s Frontier Fund has lost 9.0%. The Stanbic IBTC Ethical Fund recorded a decline of 15.6% dropping from opening offer price of N2.05 per unit to N1.73 per unit. Coral Ethical Fund, which extended its unethical list to include all interest-bearing securities and financial services companies engaging in conventional interest-based businesses, also dropped by 15.1% to N888.30 compared with N1, 046.17 per unit.

Fixed-income and mixed mutual funds meanwhile showed some restraints with Coral Income Fund posting an encouraging positive return of 5.0%. Both UBA Bond Fund and UBA Money Market Fund posted a loss of 4.7% each.
However, market review still showed most mutual funds, with the exception of UBA Equity Fund, trailing below average market loss with the NSE’s All Share Index indicating a year-to-date loss of 27.11% during the review period.

SOURCE: www.reportyourstockbroker
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