UNIT-HOLDERS in the four United Bank for Africa Mutual Funds have endorsed the dividend payment of 10 kobo, 15 kobo, 10 kobo and 10 kobo for the UBA Balanced Fund, UBA Bond Fund, UBA Equity Fund and UBA Money Market Fund.

In the financial statements for the funds considered on Friday for the year ended 31 March 2010, the UBA’s Money Market Fund returned an increase of N47.4 million and a net decrease of N17.5 million in the corresponding period of 2009, representing a 370.9 per cent appreciation.

The fund posted a gross income per unit of N0.23 kobo in the year 2010 and N0.00 kobo for the year 2009.  This performance represents a capital appreciation of 23 per cent in the value of the fund. “The appreciation in the fund is due to the increase in the interest rates during the first half of 2009.”

For the UBA equity fund, the fund achieved a net increase of N999.63 million from a net decrease of N1.460.81 million in the corresponding period of 2009, representing a 168 per cent appreciation.

The performance, which was attributed to the appreciation in stock valuation which rose from N791 million to N1.66 billion in the financial year representing a 110 per cent.

On the UBA Balanced Fund, the fund returned an increase of N550 million and net decrease of N422 million in the corresponding period of 2009, representing a 230 per cent appreciation.

The fund also recorded a gross income of N0.38 kobo in the year 2010 and a loss of N0.25 kobo per unit for the 2009. The performance represents an appreciation of 252 per cent in the value of the fund.

Speaking at the 3rd yearly general meeting of UBA Asset Management Mutual Funds in Lagos on Friday, the Managing Director of UBA Asset Management, Mr. Haruna Jalo-Waziri told shareholders that the appreciation is due to the fund’s 30 per cent investment in the stock market which was impacted by the bullish trend in the market, adding that the managements are doing everything within their powers to consolidate on the performance by putting the right systems in place to continue to yield good dividend at the end of every financial year.

“We will ensure that shareholders keep believing in us by putting the right system in place and creating assets that would generate good returns for investors especially now that confidence is returning on the Nigerian Capital Market.”

He bemoaned investors’ shallow knowledge of investing in mutual funds but however, added that they will create avenue where this knowledge would be impacted on prospective investors.

 

(Source: Guardian)