United Capital Asset Management Explains Mutual Funds’ Positive Performance


Goddy Egene

United Capital Asset Management mutual funds have recorded significant growth despite the COVID -19 pandemic that has affected the economy and headwinds in the financial markets. Data made available to THISDAY showed that the funds surpassed the market realities and beat the benchmarks.

According to the fund managers, “all our funds are managed actively to generate alpha regardless of the market conditions.”

“For instance, the current return on the United Capital Money Market Fund is 5.7 percent, which exceeds the current benchmark of 91-day Treasury Bill. Also, the United Capital Bond Fund and Eurobond Funds’ yields stand at 8.9 percent and 6.9 percent compared to benchmark returns of 6.0 percent and 3.0 percent, respectively. The benchmark for the two funds is 3-year average FGN Bond yields and LIBOR+2 percent, respectively,” the firm explained.

The company said the funds grew mainly on the back of its robust distribution network.

“We have been able to complement our physical touchpoints with an effective online sales model that allows clients to subscribe and redeem funds seamlessly. Our superior returns also set us apart as the funds continued to return above industry average and benchmarks. A key driver of growth for the Eurobond fund is investor’s demand for foreign currency due to the weak outlook for the naira, especially amidst the pandemic. We have also maintained a strong A credit rating for our Money Market Fund, which gives investors comfort in investing in our funds,” the firm explained.

Commenting further, the Managing Director/CEO United Capital Asset Management, Odiri Oginni, stated that the firm has continuously supported its clients on their journey to financial independence through our mutual funds. “Our mutual funds have grown much faster than the overall market in the last 18 months while returns on the funds consistently outperformed benchmarks, placing us among the top five Asset Managers by mutual fund size in the market. We hope to continue in this streak and even surpass it in the months and years ahead,” she said.

Also commenting, the Group Executive Director, United Capital Plc, Sunny Anene, stated: “the strong growth in the funds under management of our Asset Management subsidiary points to a high level of investor confidence in our brand as we continue to reward our clients with above-market returns regardless of challenges in the market. With an investment-grade credit rating, asset under management over N150 billion, cutting across stand-alone portfolios, and six collective investment schemes, we remain positioned as a fund manager of choice in Nigeria today.”