United Capital launches new mutual funds

United Capital recently announced the launch of two new mutual funds - the Nigerian Eurobond Fund and the Wealth for Women Fund. These funds are designed to meet the diversified investment portfolio needs of both indigenous and global clients. In a recent interview with Jude Chiemeka, MD of United Capital Asset Management, the discussion revolved around the investor appetite for these funds amidst the current economic recession. United Capital is known for operating various funds like Capital Bond Equity, Balance, and Capital Money Market Fund, but the Nigerian Eurobond Fund introduces a new dimension to their offerings. This dollar-denominated fund aims to help investors diversify their risk arising from the volatility in the FX market. By investing in Eurobonds issued by Nigeria and Nigerian corporates, the fund targets a return of around 8% to 9%, making it an attractive option for investors seeking stable returns. Chiemeka highlighted that the fund provides a 3% return in the first year, with potential to increase to 8% in the following years. Amidst the current economic challenges, the Nigerian Eurobond Fund is positioned to fare well, offering real returns in dollar terms to local investors concerned about FX market volatility. Chiemeka emphasized the importance of holding dollars for investment in this fund, with a forecasted return of 3% to 7% over the next four years. As uncertainties loom regarding future exchange rates, the Eurobond Fund offers a promising avenue for capital preservation and long-term growth. Additionally, United Capital introduced the Wealth for Women Fund, aimed at addressing gender diversity in the investment space and promoting financial inclusion for women. With a minimal subscription of 10,000 Naira, this fund targets long-term capital growth and includes an asset allocation of 80% in the money market and 20% in equities. A distinguishing feature of this fund is its focus on investing in businesses with female representation on their boards and in management positions. Studies have shown that such companies tend to outperform their peers in the long run, making the Wealth for Women Fund an attractive option for investors seeking to support female inclusion and capitalize on the potential of gender-diverse businesses. Chiemeka highlighted the stability and growth potential of this fund, noting the higher yields in money market instruments and the strategic allocation to women-led companies. The United Capital Wealth for Women Fund offers a unique investment opportunity that sets it apart from traditional mixed funds, with its emphasis on gender diversity and long-term capital appreciation. With these two new mutual funds, United Capital is expanding its offerings to cater to a wider range of investors and address specific market needs. As Chiemeka aptly summarized, these funds provide investors with opportunities for diversified and sustainable growth amidst a challenging economic landscape.