mutual funds

Nigeria’s mutual fund industry has come of age, hitting some milestones after another, every now and then. Earlier in the year, mutual fund assets crossed the half trillion Naira mark. As at June 29th, the first half of the year, fund NAV increased by 44.43% from N425.6 billion to N615.12 billion. The growth has, however, been mixed across funds and we have selected below the fastest growing funds.

Criteria for Selection

The selection is based on flow analysis that Quantitative Financial Analytics does on the NAV Summary Report from the Security and Exchange Commission, SEC. Flow analysis is a compilation of money that comes to and goes from mutual funds and their managers with a view to finding out where investors are putting their money. According to that analysis, we have identified the fastest growing fund, so far in 2018, to be Chapel Hill Denham Money Market Fund which grew its asset by 258% for the fiscal year ending June 30th, 2018.

The fund started the year with a total net asset value of N173.7 million but large inflows and relatively small outflows propelled the money market fund to the enviable position of the fastest growing fund with a total asset value of N622 million. Within the period under review, the fund gathered an estimated N464 million of new investments while it suffered just N16 million outflow.

The Chapel Hill Denham Money Market Fund was originally an equity fund known as Nigeria Global investment fund but in a 26th January extraordinary unitholders’ meeting, it was decided the fund be converted to a money market fund. The fund which has a rating of A(f) by Agusto and Co.

1st Fastest Growing Fund

Name of Fund: Chapel Hill Denham Money Market Fund

Who are the Fund Managers: Chapel Hill Denham Fund Management Limited

Type of Fund: Money Market Fund

% NAV Increase: 226.32%

NAV Increase: From N173 million to N566.million

Coronation Research

In addition to the Chapel Hill Denham Money Market Fund, here are the funds that grew the fastest in the first half of 2018.

2nd Fastest Growing Fund

Name of Fund: EDC Money Market Fund Class A

Who are the Fund Managers: EDC Fund Management Limited

Type of Fund: Money Market Fund

% NAV Increase: 189.43%

NAV Increase: From N2.3 billion to N6.6 billion

3rd Fastest Growing Fund

Name of Fund: Greenwich Plus Money Market Fund

Who are the Fund Managers: Greenwich fund Management Company

Type of Fund: Money Market Fund

% NAV Increase: 186.67%

NAV Increase: From 1.8 billion to 5.0 billion

4th Fastest Growing Fund

Name of Fund: Stanbic IBTC Absolute Fund

Who are the Fund Managers: Stanbic IBTC fund Management Company

Type of Fund: Mixed/Balance Based Fund

% NAV Increase: 174.56%

NAV Increase: From 4.95 billion to 13.6 billion

In all, 8 funds grew their NAV by more than 100% in the first half of the year while 16 funds suffered some decrease in their NAV.

1 COMMENT

  1. Thanks for the info. Just to be sure, the NAV increase means more invested funds by investors? Otherwise going by the headline tag “The best performing mutual fund”, it would’ve been the one yielding highest returns to it’s investors?

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