Tanzanian Closed-End Funds Showcase Exceptional Growth in H1 2024

Strategic Insights -

As the curtains rise on the first half of 2024, the closed-end funds sector in Tanzania has taken center stage, showcasing impressive performances that have captured the attention of investors. At the forefront of this display are NICOL and Afriprise, two funds that have outpaced the market and set new benchmarks for growth. NICOL has seen its share price double, marking a 100 per cent increase year-to-date, while Afriprise has enjoyed a robust 53 per cent climb.

Key Takeaways:

  • NICOL reported a 25 per cent increase in total income for the first half of 2024, reaching 12.4bn/- compared to 9.93bn/- in the same period last year.
  • Afriprise reported a 57 per cent increase in income to 2.90bn/- and a remarkable 63 per cent surge in operating profit, reaching 2.54bn/-.
  • NICOL faced a significant rise in operating expenses, which surged by 248 per cent to 3.04bn/-, tempering the overall profitability, resulting in a modest 5 per cent growth in profit after tax.
  • NICOL's current share price of 800/- is significantly lower than its Net Asset Value (NAV) per share of 2,612, indicating a discount of 0.30x.
  • Afriprise has a current market price of 230/- and a NAV per share of 388/-, indicating a discount of 0.59x.
  • Closed-end funds like NICOL and Afriprise present a unique investment opportunity due to their fixed capital structure, allowing fund managers to implement a longer-term investment strategy.
  • The shares of CEFs can trade at a premium or a discount to their NAV, influenced by market demand and supply, investor sentiment, and perceived value of the underlying assets.

Statistics:

  • NICOL saw a 100 per cent increase in share price year-to-date.
  • Afriprise reported a 53 per cent climb in share price year-to-date.
  • NICOL reported a 25 per cent increase in total income for the first half of 2024.
  • Afriprise reported a 57 per cent increase in income to 2.90bn/-.
  • NICOL's operating expenses surged by 248 per cent to 3.04bn/-.
  • Afriprise reported a 63 per cent surge in operating profit, reaching 2.54bn/-.
  • NICOL's P/B ratio stands at 0.30x, while Afriprise's P/B ratio stands at 0.59x.
  • The Tanzanian closed-end funds market has seen exceptional growth in H1 2024.

Sources:

  • "Dar es Salaam, Aug. 27 -- DAR ES SALAAM: AS the curtains rise on the first half of 2024, the closed-end funds sector has taken centre stage, showcasing exceptional performances that have captured the attention of investors."
  • "NICOL reported a solid 25 per cent increase in total income for the first half of 2024, reaching 12.4bn/- compared to 9.93bn/- in the same period last year."
  • "Afriprise, another prominent player in the closed-end funds market, has outpaced NICOL in terms of growth trajectory."
  • "Published by HT Digital Content Services with permission from Daily News."