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Funds Management

Mutual Funds in Nigeria and how they rank in reporting and transparency

Even the fund manager stands to gain from transparency in reporting mutual fund activities.



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Mutual funds in Nigeria are growing both in number and asset value. Going by the latest NAV Summary Report from the Security and Exchange Commission, (SEC) for the week ending June 19th, 2020, there are 106 mutual funds in Nigeria with a total asset value of N1,337,044,839,679 the equivalent of $3,714,013,444. That is about the most that one can confidently and unequivocally say about Nigerian mutual funds. That underscores the extent of transparency, or lack thereof, in mutual fund reporting in Nigeria. One would expect that an industry that large, one whose net asset value represents 10% of Nigeria’s stock market capitalization, would not be shrouded in any form of opacity.

What is Transparency: The dictionary meaning of transparency is “the state of being easily detected or seen through, easily and readily understood”. When that definition is applied to mutual funds, transparency translates into the ability of the investor to look through his investment portfolio report or fact sheet and be able to see what the investment manager is doing with his money.

Why Transparency in Reporting Matters to the investor: Though mutual fund investors may largely be retail investors with not so much investment knowledge, they would like to monitor their investment performance, the risks involved as well as what their money is being invested in. In addition, investors would like to know how much they pay by way of fees. Transparency makes that information known. To the investor, more transparency translates to more information upon which investment decisions can be made. It also increases the level of comfort that investors have about the fund manager to whom they have given their money to manage.

READ ALSO: Top 10 high-yield money market funds that beat inflation in Nigeria

Why Transparency Matters to the Fund Manager: Even the fund manager stands to gain from transparency in reporting mutual fund activities.  Fund managers operate in a competitive market environment and transparency gives them a competitive advantage. A fund manager that discloses information readily, timely, and voluntarily stands to attract investment contributions from investors. It helps to make communication with investors clearer and timely.

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Fund Managers Transparency Ranking: Having made known what and why transparency in mutual fund reporting is and should be the norm, I present below a transparency ranking of fund managers based on the availability of requisite information on their website or elsewhere, the frequency and availability of fact sheets as well as the content of such factsheets.

Stanbic IBTC Asset Management Company:

Daily Prices: Stanbic IBTC Asset Management Company has been at the forefront of mutual fund reporting transparency in Nigeria. It has daily fund prices for the 14 funds it manages updated daily on its website and sent to you upon request. Not only are the prices readily available daily, but they are also available on a historical (inception to date) basis.

Factsheets: Prior to 2019, Stanbic IBTC Asset Management Company used to have a monthly fact sheet for each of their funds, but that got changed to a consolidated quarterly report. The quarterly report is released on a timely basis. The beauty of that report is that it tells the investor the risk profile of each fund, the expense ratio, asset allocation by sector, top 3 stock holdings (which is grossly inadequate disclosure) as well as current fund performance juxtaposed with 3- and 5-year performance data. The fact sheet also shows the investor the performance of the benchmark index for each fund.  Other information contained in the fact sheet includes fund size, NAV, initial and subsequent investments as well as fund objectives. The Q1 2020 factsheets are currently on the website.

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Annual Financial Reports: In addition to the rendition of the fact sheets as noted above, Stanbic IBTC Asset Management publishes the audited financial statements of all the funds under its management. Although that of 2019 has not been published, that of 2018 has been published.

READ ALSO: SEC DG, Mary Uduk, addresses impact of CBN’s policy on equities market

Vetiva Asset Management Company:

Daily Prices: Vetiva Asset Management Company is the second most transparent fund manager in Nigeria. The daily fund prices are readily available although some times it looks like only the dates change without the actual prices changing. This may have to do with the valuation frequency of the funds.

Factsheets: Vetiva Asset Management Company has a monthly factsheet for its funds. The fact sheet contains most of the information that investors require. It beats Stanbic IBTC as it reports the top 10 holdings, which is better than Stanbic’s 3 top holdings. Like Stanbic, Vetiva Asset Management Company reports the risk profile of its funds but not all, and also reports the gross expense ratio. In addition, it lets investors see the funds’ MTD, QTD, YTD, ITD performance in juxtaposition with the relevant benchmarks. The factsheets used to be timely but as at the time of writing, the latest available is for the end of March 2020, it is likely they fund manager may be changing to quarterly reporting like Stanbic IBTC. Other pertinent information on the fact sheet includes dividend history, NAV, Bloomberg identifier, and lots more.

READ ALSO: What You need to know about Stanbic IBTC’s Shari’ah Fixed Income Fund (“SFIF”)

Lotus Capital Asset Management Company:

Daily Prices: Lotus Capital Asset Management comes next in line on transparency in mutual fund reporting. The fund manager publishes daily mutual fund prices but unlike Stanbic and like Vetiva, historical prices are not readily available. In that case, the prices are available on a get it or lose it basis.

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Fact Sheets: Lotus Capital Asset Management publishes its factsheets on a quarterly basis and has published Q1 2020 edition for each of its funds. Though it does not show expense ratio, it shows the management and incentive fee percentages as well as a description of the risk profile of the fund. In terms of returns, the factsheet shows the QTD, YTD and ITD returns. It does show 5 top stock holdings as well as asset allocation by sector.

Annual Financial Reports: In addition to the fact sheets being available quarterly, Lotus Capital Asset Management publishes the audited financial statements of all the funds under its management. And the 2019 audited financial statement has been put on the platform.

Quantum Zenith Asset Management Company:

Daily Prices: Quantum Zenith Asset management Company has made a lot of changes to its reporting and by so doing has become one of the most transparent in mutual fund reporting. Daily prices are readily available as well as historical prices in downloadable form.

Factsheets: Quantum Zenith Asset management Company has the funds’ factsheets tucked away on the website The fund manager will be better off making it easier for investors to find the factsheets as its presence is not very evident from the home page.  The fact sheet has most of the required information including top 5 holdings. The beauty of the performance presentation is that it shows whether the fund is out or under perfuming the relevant index and by how much. Information on expense ratio is not provided except the management fee rate.

United Capital Asset Management Company:

Daily Prices: United Capital Asset Management Company would probably have ranked the first or second fund manager if not for the lack of daily prices. On its web site, the last daily price is dated June 14th, 2019. However, I have been receiving the weekly prices upon request and investors can too.

Factsheets: United Capital Asset Mgt. Ltd publishes a monthly fact sheet, the latest being for the month of May 2020. The factsheet shows the risk profile of the fund, the total expense ratio, as well as MTD and YTD return numbers put side by side with that of the benchmark in addition to a 5-year performance summary.  Unfortunately, it does not contain information on what the funds are invested in but it shows the allocation by asset type.

READ MORE: Nigeria’s mutual fund asset value hits N1 Trillion

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FSDH is another fund manager that practices or is cognizant of the importance of transparency in fund reporting. The fund manager reports daily prices which can also be downloaded on a historical basis. It also publishes fact sheets. Regrettably, FSDH has been slacking on the timeliness of the fact sheets as the last published ones are for Q4 2019 

FCMB Asset Management is yet another reporting transparency conscious fund. The fund manager ensures that the fund prices are on their website daily. They used to let investors have the funds’ fact sheets but that has stopped as the last one posted was for December 2018


Other Fund Managers:  There are other fund managers that are transparent with regard to daily fund prices like ARM Asset Management, Afrinvest, Chapelhill, FBN, FCMB, and Meristem but the lack of factsheets pushed them out of contention.

Conclusion: The fund industry has come a long way in Nigeria and it continues to evolve, as the regulators tie all the loose ends and fund managers begin to leverage off of the advantages from transparency, my hope is that mutual fund reporting will improve and the investors will be the happier for it.




Uchenna Ndimele is the President of Quantitative Financial Analytics Ltd. and (both Quantitative Financial Analytics company website) is a leader in supplying mutual fund information, analysis, and commentary on African mutual funds. We provide reliable fund data; and ratings information that will add value to fund managers, the media, individual investors and investment clubs.



  1. Anonymous

    June 30, 2020 at 8:59 pm

    These report is so FLAWED what is the clear basis for this ranking. Kindly explain how a company that updates their report quarterly can be ranked first. Clients have a whole 3 months without understanding what their funds are being used for. Has the writer heard of GIPS compliance? is Stanbic GIPS compliant, do they publish their price on the Nigerian Stock Exchange, do they have appropriate benchmarks for their Funds. Where calls made to the Asset Management business to ask questions? Are the assets in their portfolio marked to market to reflect transparency.

    Obviously the writer works for Stanbic? Shame on Naira metrics for publishing such a report

  2. Anonymous

    June 30, 2020 at 9:00 pm

    These report is so FLAWED what is the clear basis for this ranking. Kindly explain how a company that updates their report quarterly can be ranked first. Clients have a whole 3 months without understanding what their funds are being used for. Has the writer heard of GIPS compliance? is Stanbic GIPS compliant, do they publish their price on the Nigerian Stock Exchange, do they have appropriate benchmarks for their Funds. Where calls made to the Asset Management business to ask questions? are assets in their portfolio marked to market to reflect transparency.

    Obviously the writer works for Stanbic? Shame on Naira metrics for publishing such a report

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Funds Management

PenCom recovers N17.51billion from defaulting employers, imposes penalties

N17.51 billion was recovered by PenCom from employers who refused to remit pensions from workers’salaries



Nigeria’s Pension Asset increased by N228 billion in October, PFAs increase investment in infrastructure to N40.52 billion   

The National Pension Commission has recovered N17.51 billion from employers that refused to remit deducted monthly pensions from their workers’ salaries to their Retirement Savings Accounts with the respective Pension Fund Administrators.

This was disclosed by the Commission in its 2020 second quarter report which was released on Friday.

Out of the N17.51 billion, the principal contribution was N8.89 billion, while the penalty imposed on the employers was N8.63 billion.

READ: CBN says 22 banks to restructure over 35,000 loans due to COVID-19

The report read, “Following the issuance of demand notices to some defaulting employers whose outstanding pension contribution liabilities had been established by the recovery agents, 16 of the affected employers remitted the sum of N261.33 million representing principal contribution of N152.79million and penalty of N108.54million during the quarter. This brought the total recoveries made from inception as at June 30, 2020 to N17.51billion.”

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According to the report, one batch of NSITF lump sum payment application totalling N225,442.72 was however received on behalf of five NSITF members during the quarter.

READ: Ngige accuses NSITF management of embezzling N48 billion and awarding fake contracts

It said the application was processed and five members’ contributions were transferred to their bank accounts.

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Consequently, it added, the cumulative sum of N2.94billion had been paid into the bank accounts of 36,551 NSITF contributors as lump sum/one off payment from inception to June 30.

For the quarter ended June 30, the commission said it processed monthly pension payments totalling N62.25million in respect of 3,629 NSITF pensioners.

READ: Private Sector drives industry growth, as PenCom remits N7.4bn into RSA

As of June 30, it said the total pension payment to NSITF pensioners amounted to N4.73billion.

The commission added that it reviewed the request for the payment of attributable income to eligible NSITF members and granted a “no objection” for payment of N2.92billion to 165,954 eligible NSITF members whose NSITF contributions were refunded to their RSAs or bank accounts as of December 2018.

READ: Leaked memo: CBN instructs banks to block bank account of 38 companies for “forex abuse”

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Funds Management

Report any employer without Group Life Insurance for employees – PenCom

PenCom has ordered that employers without Group Life Insurance policy for their employees be reported to the agency.



PenCom, unremitted pensions, Lagos State Pension Commission, LASPEC, Pension Fund Assets, PFAs make N1.69 trillion ROI  

The National Pension Commission says any employer not remitting pension contributions or does not have a Group Life Insurance policy should be reported to the Pension Commission.

This was announced in a statement by the National Pension Commission this week.

The statement said any citizens can report anonymously to the Commission, through a letter of complaint stating the name and address of the employer and also the months outstanding, which would enable PenCom recovery agents go after the employer.

PenCom also urged all employees working in organizations that have implemented the Contributory Pension Scheme, that it is their right under Section 4(5) of the PRA 2014 to have Life Insurance Policy taken on their behalf by their employers for an insured amount of no less than 3 times their annual emolument.

Nairametrics reported in February that PenCom announced effective from March 2020, companies, with no insurance covers for their staff, would no longer be allowed to do any government business.

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According to PenCom’s annual report on the submission of group life insurance certificates for the year 2018, only 172 employers obtained the group life insurance policy for a total of 39,946 employees in compliance with the Pension Reform Act 2014.

It noted that the deadline was issued because of the low number of companies that have insurance covers for their staff. PenCom noted that the new regulation was to ensure that the companies open appropriate pension accounts for the workers.

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Funds Management

Best Mutual Funds in August, judging by their performance 

Nairametrics reviews the best Mutual Funds in August, judging by their performance.



Nigeria’s Fund Industry Remain Resilient Amid COVID 19 Concerns

Mutual Funds are professionally managed investment schemes controlled by an Asset Management Company (AMC), that gives investors opportunity to invest in bonds, stocks, and securities. They are especially great for passive investors. 

According to data from the Security and Exchange Commission (SEC), Nigeria currently has about 110 Mutual Funds, cut across several Fund Types. Here is a breakdown of the Fund Types available for investors according to SEC. 

Explore the Nairametrics Research Website for Economic and Financial Data


FUND TYPE  Number 
TOTAL  110 


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To determine the best performing funds, we looked at the Fund Prices as of the last business day in July 2020, and compare it to the fund prices as of the last trading day of August 2020. These are the top 5. We also included profiles of the funds, as described in their websites. 

These are the best mutual funds in Nigeria to invest in, based on their performances in August. 

READ: Nigerian Senate to review investment laws in supporting Nigeria’s capital market

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Valualliance Value Fund 

The Valualliance Value Fund (Value Fund), is a closed-end collective investment scheme, registered and regulated by the Securities and Exchange Commission, whose units are listed on the main board of the Nigerian Stock Exchange (NSE). The Value Fund commenced operations on the 30th of June 2011, raising the sum of N3.2bn through an Initial Public Offer. It was formerly known as “SIM Capital Alliance Value Fund” 

 July 29th 

Fund Price – N103.2 

August 28th  

Fund Price – N115.05 

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Return – 11.48% 

Ranking – First 

Commentary: Valualliance value fund, by ValuAlliance Asset Managers, is the best performing fund in the month of August. The mixed fund grew by 11.48%, from N103.2 to N115.1, as at the end of August 2020, while the net value asset stood at N4.73 billion. 

READ: Okomu Oil Plc announces close period ahead of Q3 2019 results   

 Cordros Milestone Fund 2028 & 2023 

The Cordros Milestone Fund 2028 and 2023, are target-date mutual funds which start out investing in a mix of securities (asset allocation), that seeks capital growth (e.g. stocks), and gradually shifts to those that seek capital preservation (e.g. money market)as the target dates (2028 & 2023draws near. 

Target date funds, which are also called lifecycle funds, are designed to offer a convenient way to invest through a portfolio of assets. The funds are open-ended funds, constituted under a Trust Deed and the units shall then be continuously offered. Cordros Milestone Fund 2028 and 2023, grew by 9.28% and 7.27% respectively. 

July 29th (Cordros Milestone Fund 2028) 

Fund Price – N100.21 

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August 28th  

Fund Price – N109.51 


Return – 9.28% 

Ranking – Second 

READ: Best Mutual Funds in Nigeria


July 29th (Cordros Milestone Fund 2023) 

Fund Price – N98.35 

August 28th  

Fund Price – N105.50 

Return – 7.27% 

Ranking – Third 

Commentary: This is a mixed fund owned by Cordros Asset Management. The minimum initial investment is 35 units, while additional investments thereafter shall be 10 units. The managers only operate four funds, which also includes money market fund and dollar fund. 

Cordros Dollar Fund  

 The Cordros Dollar Fund, is a mutual fund that allows you to conveniently invest and earn returns in US Dollars. The fund invests in US Dollar-denominated securities like Sovereign Eurobonds, Corporate Eurobonds, Money Market instruments, and other quoted Corporate Eurobonds. The objective is to offer you competitive returns than is obtainable from an average domiciliary bank account. 

July 29th  

Fund Price – N36,498.27 

August 28th  

Fund Price – N38,986.04 

Return – 6.82% 

Ranking – Fourth 

Commentary: The Cordros Dollar Fund, is the best performing mutual fund, if you are looking for dollar-denominated fixed-income debt securities, such as EurobondsCordros Dollar fund is the third fund from the managers that made it to the best funds in the month of August. 


The Vetiva Consumer ETF VETGOODS ETF, launched in 2015, is an open-ended Exchange Traded Fund managed by Vetiva Fund Managers Limited. The VETGOODS ETF, is designed to track the performance of the constituent companies of the NSE Consumer Goods Index, and to replicate the price and yield performance of the Index. 

The NSE Consumer Goods Index comprises of the top 15 companies in the Food/Beverages and Tobacco sector listed on the Nigerian Stock Exchange (NSE), in terms of market capitalization and liquidity, and is a price index weighted by adjusted market capitalization.  

July 29th  

Fund Price – N4.02 

August 28th  

Fund Price – N4.27 

Return – 6.22% 

Ranking – Fifth 

Commentary: This is one of Vetiva’s productsand the best Exchange traded fund, growing by 6.22%. Vetiva have a number of ETF funds, three of which recorded positive growth, while the remaining two declined in the month. Hence, if you are interested in an exchange traded fund, this is the best performing in the month of August. 


Bubbling Under: The following funds make up the rest of the top 10 on our list, presented in descending order. 

  1. PACAM EquityFund (5.45%)
    7. Legacy USD Bond Fund (5.27%)
    8. Vantage Equity Income Fund (5.15%)
    9. VETBANK ETF (5.02%)
    10. Legacy Equity Fund (4.5%) 

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