United Capital Asset Management mutual funds have experienced significant growth despite the COVID -19 pandemic affecting the economy and headwinds in financial markets. The data made available showed that the funds outperform market realities and beat benchmarks.
According to the fund managers, “all of our funds are actively managed to generate alpha regardless of market conditions.”
âFor example, the current yield of the United Capital Money Market Fund is 5.7%, which is higher than the current benchmark of 91-day T-bills.
In addition, the returns of the United Capital Bond Fund and the Eurobond Funds are 8.9% and 6.9% compared to the benchmark returns of 6.0% and 3.0%, respectively.
The benchmark for the two funds is the average 3-year FGN bond yield and LIBOR + 2%, respectively, âthe company explained.
The company said funds increased mainly due to its strong distribution network.
âWe have been able to complement our physical touchpoints with an efficient online sales model that allows clients to subscribe and redeem funds seamlessly. Our superior returns also set us apart, as the funds continued to outperform the industry average and benchmarks.
One of the main growth drivers for the Eurobond fund is investor demand for currencies due to the weak outlook for the naira, especially in the midst of the pandemic.
We have also maintained a strong A credit rating for our money market fund, which gives investors the comfort of investing in our funds, âthe company explained.
Further commenting, United Capital Asset Management Managing Director / CEO Odiri Oginni said the company has continuously supported its clients on their journey to financial independence through our mutual funds.
âOur mutual funds have grown much faster than the overall market over the past 18 months, while fund returns have consistently outperformed benchmarks, placing us in the top five asset managers. by size of mutual funds in the market.
We hope to continue this momentum and even exceed it in the months and years to come, âshe said.
Also commenting, Group Executive Director, United Capital Plc, Sunny Anene, said: âThe strong growth in funds under management from our asset management subsidiary is a testament to a high level of investor confidence in our brand as we continue to reward our clients with above-market returns, regardless of market challenges.
With an investment grade credit rating, assets under management of over 150 billion Naira, spanning stand-alone portfolios and six collective investment schemes, we remain positioned today as a fund manager of choice in Nigeria.