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United Capital leverages Collective Investment Scheme to boost retail market

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Stories by Peter Egwuatu

UNITED Capital Plc, a Lagos based investment house, may have leveraged its Collective Investment Scheme, CIS,  over the years to grow its assets in excess of N100 billion.

The apex regulatory body, Securities and Exchange Commission, SEC, has continuously emphasized that such investment scheme has features to militate against risk arising from a volatile equity market, stressing the need for retail investors to embrace such scheme.

For more than 50 years, United Capital Asset Management has supported its clients on their journey to financial independence through its collective investment schemes.

Securities and Exchange Commission

The Group Executive Director, Mr Sunny Anene, said: “Our mutual funds and bespoke investment services constitute a robust suite of products that are designed for the client. Through these product offerings, we have constantly, consistently grown the size of our business (assets under management currently in excess of N100 billion /$360 million) over the years, as new clients are attracted by our commitment to their prosperity.” to prosperity

Commenting on its money market fund which is part of its mutual funds, he said; “Money Market Fund is a simple way to invest money and receive substantial value in returns within a relatively short time. It is a mutual fund that allows investors to make periodic contributions to the fund while receiving quarterly returns on the investment. The Fund offers significant value to the public especially as clients get markedly higher interest rates, only require an initial investment of  ten thousand naira to begin and can liquidate the fund at any time. These benefits make it a great choice for clients looking to grow their money with investment options that have very low risk.”

The United Capital Nigerian Eurobond Fund is another collective investment scheme that is low-risk and returns a competitive interest. The fund is invested in dollar denominated Eurobonds floated by the Federal Government of Nigeria. Given the top-value return on investment, it offers an excellent investment option for Nigerians living in the diaspora who are looking to invest some funds back home. The minimum investment for the United Capital Nigerian Eurobond Fund is $1000 and subsequently, multiples of $500 or more.

Meanwhile, the company’s latest financial performance, third quarter, Q3’18 shows significant growth (292 percent) in asset size of the Money Market, significant growth (122 percent) in the asset size of the Eurobond Fund and Zero customer complaints and regulatory infractions in the last 12 months. The company’s Q3 result further shows that revenue of N5.97billion in Q3’18, compared to N6.24billion in Q3’17 (4 percent Year o Year,  YoY decline). Operating Income: stood at N4.85billion in Q3’18, compared to N5.47 billion in Q3’17(11 percent YoY decline). The Operating expenses: was N2.29 billion in Q3’18compared to N2.34bn in Q3’17 (2 percent YoY decline).

The company recorded Profit Before Tax, PBT of N3.67billion in Q3’18, compared to N3.90 billion in Q3”17 (6 percent YoY) decline), while Profit After Tax was N3.08 billion in Q3’18 compared to N3.27billion in Q3’ 17(6 percent YoY decline).

Commenting on the financial results, Mr. Peter Ashade, the Group CEO of United Capital Plc, said that, “Looking at our results, although there was a slight drop in Gross Earnings by four percent driven majorly by decline in the yield environment, we are optimistic that we would close the year strong.”

He further stated that “United Capital seeks to reinforce its commitment to continually deliver a strong performance to shareholders, and we remain positive about the future opportunities within the Nigerian and African market, not-withstanding the current challenging macroeconomic environment.”

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