BusinessDay 19 Oct 2017

16 BUSINESS DAY
C002D5556 Thursday 19 October 2017
I NVESTO
Helping you to build wealth & make wise decisions
NSE Lotus II NSE Ind. Goods Index NSE Pension Index
Week open (06 – 10–17)
Week close (13 – 10–17)
Percentage change (WoW)
Percentage change (YTD) 37.11 44.86
IHEANYI NWACHUKWU
NSE All Share Index
36,320.93
36,848.17
R
In association with
NSE Premium Index The NSE-Main Board
Market capitalisation
NSE ASeM Index NSE 30 Index NSE Banking Index NSE Insurance Index NSE Consumer Goods Index NSE Oil/Gas Index
Year Open 26,874.62 N9.247 trillion 1,695.51 1,203.79 1,189.69 1,195.20 274.32
1.45
N12.502 trillion
N12.684 trillion
2,395.53
2,456.06
2.53
1,644.91
1,658.10
0.80
1,156.70
1,156.70
0.00
1,667.38
37.74 -2.77 41.25
454.14
1,688.19 460.56
Nigeria’s Mutual Funds assets
reach new high of N368bn
…rise by N20bn in one week, money market funds account for 66%
The value of Nigeria’s
mutual fund assets
reached record high
of N368billion, after
rising by N20billion
in the trading week to October
6. It stood at N347.7billion as
at preceding trading week to
September 29.
Mutual Funds, which are
collective/pooled investment
vehicles, are gradually becoming
investors delight as they allow
investors with limited resources
to own diversified investment
portfolio managed by seasoned
investment managers.
Data on the Net Asset Values (NAV)
and unit prices of fund management
and collective investment scheme
(CIS) as at the review week show the
record value growth of mutual fund
assets was boosted by N18.8billion
growth seen in SEC-regulated money
market funds which closed the period
in review at N242billion.
It represented 66percent of the
total value of Mutual Fund assets,
after rising from N223.3billion as at
the preceding trading week. Stanbic
IBTC Money Market Fund asset
value at N139.8billion accounted
for 57.8percent of the total value of
money market fund in the review
period.
Other money market funds
captured in the data and their
assets value are: FBN Money
Market Fund (N59.6billion);
United Capital Money Market
Fund (N386.76million);
AIICO Money Market Fund
(N697.101million); ARM Money
Market Fund (N24.08billion); and
Meristem Money Market Fund
(N413.26million).
The basket of Money Market
funds also includes: AXA
Mansard Money Market Fund
(N7.49billion); Greenwich
Plus Money Market Fund
(N1.970billion); Cordros Money
Market Fund (N1.99billion);
PACAM Money Market Fund
(N193.819million); Chapel Hill
Denham Money Market Fund
(N167.110million); Abacus Money
Market Fund (N3.203billion);
EDC Money Market Fund
Class A (N1.667billion); EDC
Money Market Fund Class
B (N522.47million); and
Kedari Investment Fund (KIF)
N251.710million.
Equity-based funds which
account for 3.64percent of the
total value of Mutual Funds
assets also grew to N13.386billion
from N13.045billion. Though it
represents 2.71percent of the value
of mutual funds, Bond Funds value
declined to N9.965billion from
N10.068billion. Ethical Funds
asset value grew to N5.419billion
from N5.374billion.
Meanwhile, Real Estate Fund
assets value grew by N106million.
It closed the week at N46.109billion
as against N46.003billion the
preceding week. Mixed Funds
asset value grew by N414million,
from preceding week level of
N25.314billion to N25.728billion.
Fixed Income funds closed
the period with assets valued at
N25.167billion which represents
6.84percent of the total value of
Mutual Funds assets as at that
date. It stood at N24.781billion at
the close of the preceding trading
week.
126.29
138.04
148.94
712.65
934.84
935.29
1.25 1.41% 7.90% 0.05%
312.68
285.89
291.09
1.82%
67.89% 17.93% 31.24% -6.90%
1,841.59
2,260.25
2,297.60
1.65%
24.76%
2,176.44
2,106.22
2,120.18
0.66%
32.90%
810.04
1,256.59
1,273.34
1.33%
57.19%
Vetiva presents Q3 review of Nigerian banking sector,
performance of Vetiva Banking Sector ETF
Vetiva Fund Managers
Limited (Vetiva)
recently presented
its review of the Nigerian
Banking Sector and the
performance of the Vetiva
Banking ETF for the
third-quarter (Q3) ended
September 30, 2017.
Olalekan Olabode, head
of research at Vetiva in the
presentation noted that
“Nigerian banks continue
to report impressive
performance across the Tier-
1 banks despite the tough
operating environment”.
“Although credit growth
has been tepid in the sector,
the elevated interest rate
environment continues to
support top line - particularly
for top Tier banks. However,
earnings from Tier II and
Tier III banks have been less
impressive,” he said.
Speaking on the impact
of the macro-environment
on the sector, Olabode
said “With a rebound in oil
prices, production levels and
stability in FX liquidity, the
banking sector has managed
to overcome the peak of
the crisis, supporting our
expectation of a moderation
in NPL (Non-performing loan)
formation. We believe that
earnings run rate is on track to
beat the modest performance
recorded in FY’16.”
In addition, Oyelade
Eigbe, head, investments
at Vetiva noted that the
Vetiva Banking ETF, which
replicates the yield and price
performance of the Nigerian
Stock Exchange Banking
Sector Index, returned
approximately 12percent in
the third quarter of the year
and circa 59percent yearto-date
(outperforming the
broader equity market).
She stated that “the
performance was driven
majorly by a rally in the
banking index in July amidst
investor positioning for
impressive performance
across Tier 1 banks, an
improved sector outlook, and
a softening macroeconomic
environment. On the other
hand, the months of August
and September were muted
as investors began to take
profit on stocks that had
previously seen buying
momentum”.
The Vetiva Banking ETF
tracks the top 10 banks
listed on the Nigerian Stock
Exchange in terms of market
capitalization and liquidity.
In response to questions on
how to access the ETF, Eigbe
indicated that investors could
purchase units of the Vetiva
Banking ETF on the floor of
the Nigerian Stock Exchange
(“NSE”) through any broker.
Vetiva Fund Managers
Limited is a wholly owned
subsidiary of Vetiva Capital
Management Limited and is
registered with the Securities
& Exchange Commission to
carry on business as Fund/
Portfolio Manager.