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Wednesday, March 22, 2023

ValuAlliance Value Fund Proposes N10 per Unit Distribution

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The ValuAlliance Value Fund, formerly called the SIM Capital Alliance Value Fund is proposing a distribution of ₦10.00/unit, for the financial year ended 30th June 2020.

This is equivalent to a yield of c.9.69 percent relative to its closing market price of ₦103.20.

From inception (July 2011) to the report date, the Value Fund has distributed approximately N2.56bn to unit holders.

If the proposed distribution is approved by unit holders, total distribution since inception will stand at N2.88bn representing approximately 90 percent of net offer proceeds at the inception of the Value Fund.

The Value Fund is a closed-end Fund registered and regulated by the Securities and Exchange Commission (SEC) whose units are listed on the Main Board of the NSE.

The Value Fund commenced the year under review; its 9th financial year, with a net asset value (NAV) per unit of ₦ 152.18.

During the period, a distribution to unit holders of ₦11.00/unit was made for the financial year ended 30th June 2019.

The NAV per unit of the Value Fund closed at ₦145.49 as at 30th June 2020 (net of all fees and expenses).

A review of the results indicates that the Value Fund achieved a year on year total return (net of all fees and expenses) of 2.83 percent in its 9th year ended 30th June 2020.

This performance resulted in a 125.32 percent cumulative return since inception of the Fund, which translates to a 9-year Internal Rate of Return (“IRR”) of 12.06 percent.

The performance of the Value Fund during the period under review was impacted by the significant decline in equity prices during the period.

While the Nigerian All Share Index returned -18.31 percent over the financial year, the Value Fund’s Fixed Income investments contributed to the positive performance of the Fund.


The Fund Manager expects factors that include COVID-19, global politics, geopolitical uncertainty, foreign and particularly domestic monetary policy actions, amongst others to contribute to market volatility in the domestic capital markets.

The Fund Manager expects attractive entry opportunities in both the listed and unlisted equity markets for long-term value investors and will seek to take advantage of these by selectively increasing the Value Fund’s equity exposure.

Concurrently, the Fund Manager will continue to review the Value Fund’s existing holdings and will potentially trade out of equity positions that are determined to be trading close to intrinsic value or at a premium to intrinsic value.

In the fixed income space, the Fund Manager will continue to seek and take advantage of attractive opportunities while working to ensure optimal portfolio diversification and flexibility in the evolving domestic fixed income market.

The Value Fund pursues a total return objective and aims to provide investors with capital growth over the long-term by investing in listed and unlisted Nigerian equities and other securities as approved by Securities and Exchange Commission (SEC).

To achieve this, the Value Fund pursues a pragmatic value philosophy, thus, the Fund invests in securities which are sufficiently undervalued relative to their intrinsic value.

It seeks securities that are trading at an acceptable margin of safety to the Fund Manager’s assessment of intrinsic value.

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