Mutual Funds are a great form of investing especially if you are a passive investor. According to data from the Security and Exchange Commission, Nigeria has about 107 Mutual Funds cut across several Fund Types. Here is a breakdown of the Fund Types available for investors according to SEC.
|EQUITY BASED FUNDS||13|
|EXCHANGE TRADED FUNDS||10|
|FIXED INCOME FUNDS||21|
|MONEY MARKET FUNDS||23|
|REAL ESTATE FUNDS||3|
To determine the best performing Funds, we looked at the Fund Prices as of the last business day in December 2019 and compared to the fund prices as of the last trading day of June 2020. These are the top 5. We also included profiles of the funds as described in their websites.
New Gold ETF
Vetiva’s The NewGold Exchange Traded Fund (NewGold) is an Exchange Traded Fund that was listed on The Nigerian Stock Exchange (NSE) in December 2011. It tracks the price of gold and offers institutional and retail investors the opportunity to invest in a listed instrument (structured as a debenture) that is fully backed by gold bullion. Each NewGold security is equivalent to approximately 1/100 ounces of real gold bullion held in a secured stockpile of gold bullion. All gold is kept in the form of London Gold Delivery Bars and Good Delivery Standards are prescribed by LBMA.
Fund Price – N5,220
Fund Price – N8,000
Return – 53.3%
Ranking – First
Commentary: Gold prices have been on the up since the Covid-19 pandemic took hold of the global economy. Investors are uncertain and as history shows gold prices are always up during market uncertainty. If you are looking for protective investment in times of uncertainty then this is the best performing fund so far.
FBN Nigeria Smart Beta Equity Fund
FBNH owned The FBN Nigeria Smart Beta Equity Fund is a pure equity fund that invests money predominantly in a portfolio of Nigerian companies, using a rigorous, research-based and tested evaluation system.
The fund provides long-term capital preservation by investing at least 75% of the fund’s assets (excluding cash and cash equivalents) in a diversified portfolio of high-quality companies listed on the Nigerian Stock Exchange. In order to manage liquidity, the fund may also invest up to 25% in short-term money market instruments and deposits with financial institutions.
Fund Price – N129.17
Fund Price – N197.29
Return – 52.7%
Ranking – Second
Commentary: For a fund that is predominantly focused on equities, this a pretty much impressive performance by all standards. For example, the NSE All-Share Index is down 9.8% year to date. If you are worried about investing in stocks and don’t have the heart for it and you are looking for a mutual fund, then this is the best performing fund out there.
Vantage Balanced Fund
Investment One’s Vantage Balance Fund (launched in 2002) is a fund focused on long term capital appreciation, which is achieved by maintaining a flexible diversified portfolio of equities, fixed income, money market, and real estate investments. Assets are high-quality equity instruments quoted on The NSE while the bond issuers have an investment-grade rating from a credit rating agency registered by SEC.
Fund Price – N2.21
Fund Price – N2.87
Return – 29.9%
Ranking – Third
Commentary: This is a Mixed fund as it invests in a diverse pool of assets. Interesting to note that the managers of this fund also have an Equity-Based Fund, a Dollar Fund, and a Fixed Income Fund. But none of them come close to the Balanced Fund. If you are looking for a portfolio with a good mix of investment assets then this is the best performing as of June 2020.
Legacy USD Bond Fund
FCMB Asset Management Owned Legacy USD Bond Fund (launched in 2018) is a SEC-registered US Dollar-denominated Collective Investment Scheme, structured as a high-yield mutual fund. The Fund seeks to generate stable income over the long-term. Legacy USD Bond Fund invests in credit-rated US Dollar-denominated fixed income securities issued by the Nigerian Government, Supranational bodies, and Corporate entities.
Fund Price – N306.5
Fund Price – N360.5
Return – 24.4%
Ranking – Fourth
Commentary: The Legacy Bond Fund is the best performing mutual fund if you are looking for dollar-denominated fixed-income debt securities like Eurobonds. At 24.4% they seem to be holding bonds with good yields and market values respectively. Apart from the Bond Fund, managers of the Legacy Bond Fund also manage a Fixed Income Fund, a Money Market Fund and an Equity Fund. If you are looking to invest in Eurobonds then this mutual fund is the best performing.
Vantage Dollar Fund
Investment One’s Vantage Dollar Fund (launched in 2018) is a SEC registered open-ended Unit Trust Scheme in Nigeria. The Fund seeks to provide investors with a bias for Dollar-denominated securities access to such securities, which ordinarily would be inaccessible to them by virtue of the minimum amount typically required to make such investments. It will invest primarily in Corporate and Sovereign Eurobonds.
Fund Price – N401.02
Fund Price – N469.2
Return – 17.0%
Ranking – Fifth
Commentary: This is the second dollar mutual fund on the list and the second from Investment One to make the list of best 5. It appears they have a hang on fund management. Dollar Mutual funds are a great source of investments and it is great to see another in the top 5. Thus, if you want another option, then this is one you can also go for.
Bubbling Under: The following funds make up the rest of the top 5 on our list and in descending order.
6. AIICO Balanced Fund
7. VI ETF
8. Coronation Fixed Income Fund
9. CEAT Fixed Income Fund
10. United Capital Euro Bond Fund
PenCom okays N2.58billion for relatives of 591 deceased workers in three months
PenCom has released N2.58billion for payment of pension benefits of deceased workers.
The National Pension Commission (PenCom) has released N2.58billion for payment of pension benefits of 591 deceased workers under the Contributory Pension Scheme in the second quarter 2020.
This was disclosed in the commission’s second-quarter 2020 report.
According to the report, the beneficiaries included 288 from the Federal Government sector, 135 from State Government sector and 168 from the private sector, making a total of 591 relatives.
It read, “The commission approved the payment of N2.58bn as death benefits to the beneficiaries of the 591 deceased employees during the quarter under review.”
PenCom also said that during the quarter under review, the Pension Fund Administrators recaptured 56,990 Retirement Savings Account holders and uploaded their data on the Enhanced Contributory Registration System.
It stated that the Enhanced Contributor Registration System, which was deployed in June 2019, had provided a platform for addressing various issues identified with the Contributor Registration System.
It said the PFAs under the assistance of Pension Operators Association had commenced the implementation of a shared service approach in order to speed up the data recapture exercise.
The commission said it generated a total number of 190 employer codes in the period under review using the ECRS.
Over 92% of employer codes generated were for private sector companies, including about seven per cent for small businesses, it stated.
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Best performing Mutual Funds in September
Nairametrics reviews the best Mutual Funds in August, judging by their performance.
Mutual Funds are professionally managed investment schemes that are controlled by designated Asset Management Companies (AMC). These Funds allow investors the opportunity to invest in stocks, bonds, and securities. They are particularly good for passive investors.
According to data from the Security and Exchange Commission (SEC), Nigeria currently has about 112 Mutual Funds as of October 2nd, 2020. These Mutual Funds cut across several Fund Types. Here is a breakdown of the Fund Types available for investors according to SEC.
These are the top 5 performing funds. We also included profiles of the Funds as described on their websites. To determine the best performing Funds in the month of September, we looked at the Fund Prices as of August 2020 and compared to the fund prices as of 2nd October, as released by the Securities and Exchange Commission (SEC).
Vantage Balanced Fund – Investment One Funds Management Limited
The Vantage Balanced Fund (VBF), formerly known as Nigerian International Growth Fund is a balanced Mutual Fund, was created to maximize long-term capital growth and maintain regular income distribution.
The Fund is invested in Equities, Fixed Income and Money Market Instruments, and Real Estate investments. The primary objective of the Fund is long-term capital appreciation, which is achieved by investing not more than 70% of the Fund’s assets in the equities of blue-chip companies listed on the Nigerian Stock Exchange.
Fund Price – N2.17
Fund Price – N2.41
Return – 11.06%
Ranking – First
Commentary: VBF is a Mixed Fund by Investment One Funds Management Limited. It is the best performing fund in the month of September, growing by 11.06%. The net asset value stood at N1.71 billion as of 2nd October.
Anchoria Equity Fund – Anchoria Asset Management Limited
The Anchoria Equity Fund is an open-ended fund. It is a collective investment scheme, which seeks to invest primarily in quoted equities (minimum of 75%) and fixed income securities (maximum of 25%). The Fund does not invest in unquoted equity securities. The Fund employs an asset mix strategy with the aim of achieving consistent growth, by seeking significant exposure to a diversified pool of investment-grade equities and fixed income securities.
In order to ensure sound investment selection, portfolio, and risk management practices, the Fund adopts a portfolio strategy that largely depends on fundamental and technical analysis in order to properly assess the inherent risks within the context of the Fund profile. Accordingly, the Fund holds long term quoted equity positions with strong fundamentals underpinned by good economic themes, that are attractively priced relative to their true value and prospects.
Fund Price – N99.33
Fund Price – N107.87
Return – 8.60%
Ranking – Second
Commentary: This is an Equity Based Fund by Anchoria Asset Management Limited. For a fund that is predominantly focused on equities, this is a pretty much impressive performance by all standards. It grew by 8.60% in the month of September. The net asset value stood at N313.78 million as of 2nd October.
Paramount Equity Fund – Chapel Hill Denham Mgt. Limited
The Paramount Equity Fund is Nigeria’s oldest mutual fund which invests in a broad range of high-quality equities and fixed income securities. The Fund seeks to provide an investment vehicle that enables unitholders to achieve consistent capital appreciation and some income over the long term. The Fund is suitable for investors who seek high capital growth and have a high-risk appetite. Investors are also expected to have medium to long term investment horizon.
Fund Price – N11.54
Fund Price – N12.52
Return – 8.49%
Ranking – Third
Commentary: This is an Equity Based Fund by Chapel Hill Denham Management Limited. The Fund grew by 8.49% in the month of September. The performance is impressive considering that it is predominantly focused on equities. The net asset value stood at N425.28 million as of 2nd October.
VI ETF – Vetiva Fund Management Limited
The Vetiva Industrial ETF “VETIND ETF” is an open-ended Exchange Traded Fund managed by Vetiva Fund Managers Limited. The VETIND ETF is designed to track the performance of the constituent companies of the NSE Industrial Index and replicate the price and yield performance of the Index.
The NSE Industrial Index comprises of the top 10 companies in the Industrial 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.
Fund Price – N11.19
Fund Price – N12.00
Return – 7.24%
Ranking – Fourth
Commentary: The VI ETF by Vetiva Fund Management is the best performing Exchange Traded Fund in the month of September. It grew by 7.24% in the review month. The net asset value stood at N126.32 million as of 2nd October.
VCG ETF – Vetiva Fund Managers
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 comprises 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.
Fund Price – N4.27
Fund Price – N4.57
Return – 7.03%
Ranking – Fifth
Commentary: This is another of Vetiva’s products, and it is one of the best Exchange Traded Funds based on September performance, growing by 7.03%. VCG EFT Funds are a great source of investment, and it is not surprising to see another in the top 5 rankings. The net asset value stood at N117.36 million as of 2nd October.
Bubbling Under: The following Funds make up the rest of the top 10 on our list in descending order.
6.VG 30 ETF – Vetiva Fund Managers Limited (Exchange Traded Funds)
Return – 6.64%.
7. ACAP Canary Growth Fund – Alternative Cap. Partners Limited (Mixed Funds)
Return – 6.22%.
8.VETBANK ETF – Vetiva Fund Managers Limited (Exchange Traded Funds)
Return – 5.80%.
9. AIICO Balanced Fund – AIICO Capital Ltd (Mixed Funds)
Return – 5.75%.
10. Frontier Fund – SCM Capital Limited (Equity Based Funds)
Return – 5.34%.
NB: The figures are based on SEC weekly performance report
Depositors of Post Service Homes Savings and Loans Limited soon to be paid – NDIC
Depositors of Post Service Homes Savings and Loans Limited currently in liquidation will soon be paid their claims.
The Nigeria Deposit Insurance Corporation (NDIC), the official Liquidator of the defunct Post Service Homes Savings and Loans Limited (in-Liquidation) is in the process of paying insured sums to the depositors of the closed bank.
As from Monday, 5th October 2020, all depositors of the bank are requested to visit any branch of the defunct bank, for verification of their claims with the NDIC officials.
NDIC further directed the affected Depositors to present their cheque books, passbooks, and any other proof of account ownership, together with any valid means of identification; and alternate account as part of the verification exercise, before the insured amount can be paid to them.
All eligible depositors could also contact the representatives of the Director, Claims Resolution Department in any of the underlisted NDIC Zonal Offices nearest to them, to file their claims or seek further clarifications as may be deemed necessary.
NDIC Zonal offices and phone numbers:
|1||Lagos Office||NDIC NECOM House 10th Floor, 15 Marina, Lagos.||08166569995; 09072412332|
|2||Enugu||10, Our Lord’s Street Independence Layout, Enugu.||042-290898|
|3||Benin||28A/28B Benoni Hospital Road, Off Airport Road, GRA Benin City, Edo State||08150999577; 08150999588; 08150999599; 08150999600; 08150999535|
|4||Kano||Plot 458 Muhammad Muhammad Street, Off Maiduguri Road, Hotoro GRA, Kano.||08097756130; 09092748222|
|5||Ilorin||No 12A Sulu Gambari Road Ilorin.||08023123185|
|6||Bauchi||Plot No 3 Bank Road, P.M.B 0207, Bauchi.||09-4601505|
|7||Sokoto||No 2 Gusau Road, Opp. NNPC Mega Station, Sokoto.||08033155162|
|8||Yola||No 6 Numan Road P.M.B. 2227, Jimeta Yola, Adamawa State.||08067910599; 08068418069; 08067923383; 09-4601515 09-4601516|
|9||Port Harcourt||No 104 Woji Road, Off Olu Obasanjo Road, GRA, Port Harcourt||09090726737; 09029150752|
|10||Head Office Abuja||Head, Bank Examination Unit (BEU) Abuja Plot 447/448 Constitution Avenue, Central Business District, Abuja.||09-4601260; 09-4601261|