UPDC Real Estate Investment Fund leads sector fund performance in 2018
BusinessDay year-to-date analysis of the performance of the three equity funds in Nigeria’s real estate sector from December 29, 2017 to November 2, 2018 shows UAC Property Development Company (UPDC) Real Estate Investment Fund topped the table.
The fund which is managed by FSDH Asset Management Limited was up 1.66 percent in the review period, from N11.84 in December last year to N12.04 in November 2018, figures from the Securities and Exchange Commission (SEC) shows.
Johnson Chukwu, MD of Cowry Assets Limited, said ordinarily, any good fund manager should perform well, because a portfolio investor has to first identify the instrument that qualifies for investment in their portfolio, and those should be the only instruments that have very good fundamentals.
“The selectiveness of investors in picking instruments into their portfolio is such that any good portfolio or fund manager should ordinarily outperform the market index, because their choices will largely be on the good performers,” Chukwu told BusinessDay.
Skye Shelter Fund and Union Homes REITS, both managed by SFS Capital Nigeria Limited, however reported negative return in their unit price in the same period under review.
Union Homes and Skye Shelter Fund had a decrease by 5 percent and 0.04 percent in their unite price respectively.
The unit price of Skye Shelter Fund was down in the review period from N100 it reported on December 29, 2017 to N95 at the week ended November 5 2018 while Union Homes declined marginally in its unit price from N45.22 billion to N45.20 billion.
A further analysis of the fund revealed that both Union Homes REITS and UPDC Real Estate Investment Fund increased in their Net Asset Value (NAV).
The NAV of the former increased by 0.95 percent, from N12.69 billion to N12.81 billion in the review period while the latter, with 67.94 percent share of the total Real Estate Fund of N47.27 billion, grew its NAV from N31.59 billion in December last year to N32.11 billion in November this year.
Skye Shelter Fund on the other hand, reported a reduction in its Net Asset Value by 1.26 percent from N2.37 billion to N2.34 billion in the period under review.
A mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers who invest in the fund’s capital and attempt to produce capital gains and income for the fund’s investors.
The Real Estate Fund with total asset under management of N47.27 billion has 7.26 percent share of the total asset listed on the security exchange which stood at N650.6 billion.
This is lower than the 11.14 percent share the fund reported from the total of N418,83 billion in November last year, as compiled from the figures available on SEC website.
Meanwhile, the total NAV reported for Ethical Funds, Mixed Funds, Fixed Income Funds, Equity Based Funds, Real Estate Funds, Money Market Funds, and Bond Funds in November this year at N650.6 billion is 55.3 percent higher than the 418.83 billion reported in the week ended December 29, 2017.
Endurance Okafor