25-08-2015 by 
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Not too long ago, I noted in a blog that there is a fund that "never" lost money. In that blog, I wrote about the enticing performance of Stanbic IBTC Absolute Fund. The fund has continued its positive even with the choppiness of the market in recent months, the Stanbic IBTC Absolute fund ended the month of July in the black, making it the only fund that has  made just one month loss since January 2013. With a performance of 1.13% in July, the fund has so far recorded a YTD return of 7.77%, beating  all the indices in the Nigerian market. With the  Allshare Index at a YTD return of -12.92% by July 31, the Stanbic IBTC Absolute Fund is therefore showing an out performance of 20.69%

YTD July Performance

In 2013, the fund recorded a YTD return of 10.01% and 12.61% in 2014. The only loss  the fund witnessed was in June 2013 when it recorded a negative return of 0.58%, too marginal to be consequential in the light of its positive home  runs. The fund which opened the year with a NAV price of N1,910.24 is currently trading at N2,071.87.

 Price Trend

From available information, it does not look like the fund has ever paid any dividend, so investors can only wish that the long term capital appreciation of the fund will continue. Looking at the price trend of the fund, it does appear that the upward slope is here to stay.

Risk Return Profile

the Stanbic IBTC Absolute fund is a low volatility fund with annualized  standard deviation of 1.88, high reward and low risk profile. According to our analysis, the fund has an inception to date risk of 0.61 and reward of 6.67. 

Risk Profile

 

The fund also has a low correlation with the All Share index. With a correlation of -0.5, it is easy to see why the fund generates positive returns when the Allshare index is in the red.

The Fund

Stanbic  IBTC Absolute Fund is an open-end fund incorporated in Nigeria. The Fund's objective is to provide liquidity whilst maintaining low to medium volatility of return over the long term.

 The Fund is currently invested almost exclusively in money market instruments according to the latest monthly Fund Manager investment released by the Security and Exchange Commission for the month of June, 2015, The fund  is aimed at investors with low risk appetite.

asset allocation

Caveat

As always, readers are reminded that past performance of a fund does not guarantee future performance. In addition, the author does not hold any position in the IBTC Absolute fund and information provided in this write up is derived from various sources presumed to be correct but the authenticity of which the author did not or could not verify. Note also that this is not to be taken as an investment advise or a recommendation of the said fund.

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