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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.

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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 
MONEY MARKET FUNDS  23 
FIXED INCOME FUNDS  22 
MIXED FUNDS  21 
EQUITY BASED FUNDS  13 
BOND FUNDS  11 
EXCHANGE TRADED FUNDS  10 
ETHICAL FUNDS  6 
REAL ESTATE FUNDS  3 
INFRASTRUCTURE FUND  1 
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  

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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 

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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. 


VCG ETF 

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%) 

Nairametrics Research team tracks, collates, maintains and manages a rich database of macro-economic and micro-economic data from Nigeria and Africa. Our analysts share some of the data collated on Nairametrics, using formats such as docs, tables and charts etc. The team also publishes research based analysis as articles on a regular basis.

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Funds Management

Nigerians can now invest in more mutual funds

The coming year(s) may see more fund managers joining in the quest to explore and expand the Nigerian mutual fund space.

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Nigeria’s Fund Industry Remain Resilient Amid COVID 19 Concerns

Mutual funds in Nigeria have been increasing both in popularity, assets under management (AUM), as well as in numbers. Though not all the mutual funds in the country are published, the SEC Net Asset Summary Report has been acting as a barometer on which to gauge or measure the health of the industry.

Compared to other countries, mutual funds as an investible asset class is relatively new in Nigeria. In spite of its newness, the number of funds has grown from 1 in 1991 to 110 as of October 16th, 2020.

12 new mutual funds made it to the list out of this number. They include the following Alpha Etf, Anchoria Equity Fund, Anchoria Fixed Income Fund, Anchoria Money Market Fund, ARM Eurobond Fund, ARM Fixed Income Fund, Cordros Dollar Fund, FAAM Money Market Fund, FBN Nigeria Halal Fund, AVA GAM Fixed Income Dollar Fund, Trustbanc Money Market Fund, and Afrinvest Dollar Fund.

Just like the number of mutual funds in Nigeria increases, so has the asset under management or net asset value of mutual funds. As of October 16th, 2020, the total asset value of Nigeria mutual funds stood at N1.54 trillion or $4.05 billion when converted at a rate of N380/$.

What you should know

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In the same vein, the number of fund managers also increased, although the increase is not as much as that of the number of mutual funds. So far in 2020, 4 fund managers joined the league of mutual fund managers in Nigeria. The new additions are:

  • First Ally Asset Management Limited, which oversees the FAAM Money Market Fund with N718 million in assets under management.
  • The next newcomer fund manager is Trustbanc Asset Management Limited whose only fund – Trustbanc Money Market Fund, has added N98 million to Nigeria’s total mutual fund asset value as of October 16, 2020.
  • Anchoria Asset Management Limited currently has three mutual funds under its management – Anchoria Equity, Anchoria Fixed Income, and Anchoria Money Market funds, with a combined asset under management of N1.156 billion.
  • Lastly, AVA Global Asset Management Limited has one fund – AVA GAM Fixed Income Fund, with an AUM of N523.8 million under its management.

Bottomline

This is indeed a good development because when compared with the same period in 2019; only one fund manager, Growth and Development Asset Management Limited (GDL) was added to the list with its GDL Money Market Fund.

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More additions are not expected this year but the coming year(s) may see more fund managers joining in the quest to explore and expand the Nigerian mutual fund space.

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Funds Management

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.

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

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.

READ: PenCom should pay 50% of workers’ pension at retirement – TUC

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.”

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

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.

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READ: How foreign exchange risks and others affect the Nigerian pension industry 

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.

READ: FUGAZ Banks suffer N1.9 trillion in CRR Debits in Q2

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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Funds Management

Best performing Mutual Funds in September 

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

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Best Mutual Funds in Nigeria

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.

mutual funds Nairametrics

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.

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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.

August 28th 

Fund Price – N2.17

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October 2nd

Fund Price – N2.41

Return – 11.06%

Ranking – First

 

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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.

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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.

August 28th 

Fund Price – N99.33

October 2nd 

Fund Price – N107.87

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Return – 8.60%

Ranking – Second

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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.

August 28th 

Fund Price – N11.54

October 2nd 

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.

August 28th 

Fund Price – N11.19

October 2nd 

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.

August 28th 

Fund Price – N4.27

October 2nd 

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 

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