BusinessDay Nigeria BusinessDay 18 Jun 2018 | Page 28

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BUSINESS DAY
C002D5556
Monday 18 June 2018
Markets Intelligence
ECONOMY
FBN Asset YTD return highest among
peers after dividend adjustment
ENDURANCE OKAFOR
F
BN Capital Asset Manage-
ment Limited recorded the
highest year-to-date (YTD)
total return among its peers listed
on the Security Exchange Com-
mission (SEC).
This analysis was done follow-
ing an adjustment of its dividend
of N11 paid in March 2018. When
this is added to its returns of -1.0
percent as analysed by Business-
Day, it gives a total YTD return of
5.4 percent covering the period
between January and June 1st
2018.
This was not different for First
City Asset Management plc Leg-
acy Equity Fund as it had a YTD
return of -5.59 percent in the
period under review. Although,
when adjusted with its dividend
of 12 Kobo which the equity fund
paid in January 2018, a total YTD
return of 2.32 percent was re-
corded for the fund.
Only the two funds were ana-
lysed with dividend adjustment
among the initial 10 registered
funds surveyed in Business-
Source: Companies’ Publication
Day’s article published last week
Wednesday 13, June 2018, with
the headline; Stanbic IBTC ag-
gressive fund, United Capital,
ARM lead equity funds perfor-
mance in 2018, owing to the
availability of data on the paid
dividend of the funds.
Meanwhile, the Nigerian Stock
Exchange (NSE) all share index
return for the period was report-
ed to be -3.73, and it is the bench-
mark with which this analysis was
carried out.
Other funds that had returns
above the NSE all share index in
the period under review were;
Stanbic IBTC aggressive fund
with a 3.82 percent, United Capi-
tal asset management Ltd equity
fund (+ 3.22%), ARM aggressive
growth fund (+0.36%), Stan-
bic IBTC Nigerian equity fund
(-0.13%), and AXA Mansard in-
vestment Limited (-3.65%).
Although the dividend data of
these funds were not available
to BusinessDay as at the time of
this report, and as such dividend
adjustment were not carried out
on the funds’ returns.
Analysts however linked the
performance of the listed equity
funds that outperformed the NSE
all share index in the period to
being exposed to growth stocks.
Investment by these funds in
instruments that had very strong
potential was another reason
cited by analysts for the bullish
returns.
Meanwhile, the sizes of an
equity fund is determined by a
market capitalization, while the
investment style, reflected in
the fund’s stock holdings, is also
used to categorize equity mutual
funds.
An equity fund is therefore a
mutual fund that invests prin-
cipally in stocks. It can be ac-
tively or passively (index fund)
managed. Equity funds are also
known as stock funds.
Forte Oil has the largest Enterprise value among listed oil marketers
BALA AUGIE
F
orte Oil’s Enterprise value
or EV of N81.03 billion is the
largest among peers. This is
followed by Total; (N76.17 billion),
and Mobil; (N61.59 billion).
The EV for short is a measure
of a company’s total value, often
used as a more comprehensive
alternative to equity market
capitalization.
EV is calculated as the market
capitalization plus debt, minority
interest and preferred shares, minus
total cash and cash equivalents.
If a company were to purchase
Forte Oil’s outstanding shares
for N41.12 billion, it will also
have to settle the indigenous
downstream oil and gas giant’s
outstanding debts which sum
up to N33.93 billion. In total,
the acquiring company will
spend N82.07 billion to purchase
Forte’s.
However, since Forte has
N969.69 million in cash, this that will be used to pay off Forte’s
amount can be added to repay debt will only be N33.93 billion –
the debt. The money from the N969.69 million = N32.96 billion.
coffers of the acquiring company
Therefore, the company will
pay, out-of-pocket, N32.96 bil-
lion + N48.12 billion = N81.01
billion, which is the estimated
market value of Forte’s.