Unit holders of UBA Asset Management Limited-managed funds are set to get returns on their investments via dividends, following an improved performance by the fund.

UAML manages four funds – the UBA Equity Fund, UBA Money Market Fund, UBA Bond Fund and UBA Balanced Fund, all of which made returns for the year ended March 31, 2013, according to the management of the firm.

The Managing Director and Chief Executive Officer, UAML, Mrs. Modupe Mujota, told journalists at the company’s Annual General Meeting in Lagos that UEF recorded a 39 per cent return, while UBF made a 36 per cent return with UMMF and UBF recording 14 per cent and 13 per cent returns, respectively.

She explained that the growth recorded by the fund was down to the company’s timely intervention in the market.

She said, “The growth is basically based on our timely intervention in a market that had opportunities that we were able to spot in time and take advantage of.”

She added that while the company was conservative in its allocation in line with the investment policy objectives, the selection within the equity market and investment in high yield led to the returns recorded by the fund.

Mujota, who said UAML was passionate about its subscribers – bearing in mind that some of them were pensioners – explained that the payment of dividends was part of the company’s objectives.

She explained that the unit holders were being paid dividends for all the funds, saying two of the mutual funds were paying 15 kobo per unit with the other two paying 10 kobo per unit.

Mujota added that the UMMF made a gross return of 14 per cent for the year after paying a dividend of eight kobo per unit, while UBF ended with a return of 13 per cent and paid a dividend of 10 kobo.

According to her, the relative low performance of UBF is largely due to the hold to maturity strategy.

She said, “Most of the assets were carried over at low yield since 2010. Thus, the fund manager aims to have a more active strategy that will ensure long position in high-yield instruments, going forward, as new contributions are used to lock in currently high yields in the market.”

Mujota called on Nigerians to consider investment in mutual funds for themselves and as gifts to their loved ones, especially in the festive season.

She said, “The best kind of gift you can give during this Yuletide is a gift that keeps on giving. And a gift that keeps on giving is an investment in UBA mutual funds.”

Source: Punch (by Simon Ejembi)