As the year is gradually coming to an end, Investors will be looking to cash in on some of their investments as 59.8% of the mutual funds registered with the Security and Exchange Commission (SEC) recorded positive growth in October, while only 8 funds declined.
Mutual Funds are entities that pool cash from a variety of investors for the sole purpose of investing the cash in shares, bonds, treasury bills etc. (all together called a portfolio of investments). The profit derived from the diversified pool of investments are shared to investors in the funds annually or semi-annually or as stipulated in the fund prospectus.
According to data from the Security and Exchange Commission (SEC), as at 30th October 2020, Nigeria has about 112 Mutual Funds with over N1.48 trillion net asset value cutting across several fund types. Here is a breakdown of the fund types available for investors according to SEC.
To determine the best performing Funds, we looked at the Fund Prices as of 2nd October and compared to the fund prices as of the last trading day of October 2020 (30th October). Â These are the top 5 mutual funds in October. We also included profiles of the Funds as described on their websites.
Vetiva S & P Nig. Sovereign Bond ETF – Vetiva Fund Managers Limited (ETF)
The Vetiva S&P Nigerian Sovereign Bond ETF is an optimized Bond ETF issued by Vetiva Fund Managers Limited (“VFM” or “Fund Manager”). This ETF seeks to track the S&P Nigerian Sovereign Bond Index, indicating that the unit price of the ETF on the Exchange should track the movement of the Index.
An investor that owns this ETF obtains market exposure to the most liquid and actively traded FGN Bond Securities. The ETF seeks to replicate, to the extent possible, the price and yield performance of the FGN Bond securities constituting the S&P Nigerian Sovereign Bond Index, net of expenses.
October 2nd
Fund Price – N214.00
October 30th
Fund Price –N275.46
Return – 28.72%
Ranking – First
Commentary: The Vetiva S&P Nigerian Sovereign Bond ETF by Vetiva Fund Managers Limited is an exchange traded fund. It is the best performing fund in the month of October; growing by 28.72%. The net asset value stood at N969.72 million as at 30th October 2020.
Nigeria Int’l Debt Fund – Afrinvest Asset Mgt. Limited (Bond Funds)
The Nigeria International Debt Fund is a distinct investment product, originally created as a closed-ended fund in 1997. It was restructured to an open-ended fund in 2010.
The Nigeria International Debt Fund invests in Federal and State government bonds. The emergence of State bonds is currently gaining popularity as various states aim to fund large projects with targeted issuances. The objectives of the fund include to reduce risk and offer investment safety, to provide steady returns and investment diversification and to preserve investors’ capital.
October 2nd
Fund Price – N365.58
October 30th
Fund Price – N449.35
Return – 22.91%
Ranking – Second
Commentary: This is a Bond Fund by Afrinvest Asset Management Limited. For a fund that is predominantly focused on bonds, this a pretty much impressive performance by all standards. It grew by 22.91% in the month of October. The net asset value stood at N2.34 billion as at 30th October 2020.
AIICO Balanced Fund – AIICO Capital Limited (Mixed Funds)
AIICO Balanced Fund is an actively managed open-ended Fund. The Fund invests primarily in equities, government securities, fixed deposit, fixed income securities.
October 2nd
Fund Price – N3.24
October 30th         Â
Fund Price – N3.88
Return – 19.57%
Ranking – Third
Commentary: This is a Mixed Funds by AIICO Capital Limited. The Fund grew by 19.57% in the month of October. The performance is impressive considering that it is focused on Mixed Funds. The net asset value stood at N169.55 million as at 30th October 2020.
VETBANK ETF – Vetiva Fund Managers Limited (ETF)
The Vetiva Banking ETF “VETBANK ETF” is an open-ended Exchange Traded Fund managed by Vetiva Fund Managers Limited. The VETBANK ETF is designed to track the performance of the constituent companies of the NSE BANKING Index and to replicate the price and yield performance of the Index.
The NSE BANKING Index comprises of the top 10 banks listed on the Nigerian Stock Exchange (“NSE”) in terms of market capitalization and liquidity and is a price index weighted by adjusted market capitalization.
October 2nd
Fund Price – N3.10
October 30th
Fund Price – N3.70
Return – 19.35%
Ranking – Fourth
Commentary: The VETBANK ETF by Vetiva Fund Management is an Exchange Traded Fund. This is the second exchange traded fund on the list of best performing mutual funds as it grew by 19.35% in the month of October. The net asset value stood at N315.26 million as at 30th October 2020.
VCG ETF – Vetiva Fund Managers (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 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.
October 2nd
Fund Price – N4.57
October 30th
Fund Price – N5.45
Return – 19.26%
Ranking – Fifth
Commentary: This is another of Vetiva’s products, and it is one of the one of the best Exchange traded fund, growing by 19.26%. VCG EFT Funds are a great source of investments and it is not surprising to see another it in the top 5. The net asset value stood at N139.96 million as at 30th October 2020.
Bubbling Under: The following Funds make up the rest of the top 10 on our list; in descending order.
6. Afrinvest Dollar Fund – Afrinvest Asset Management Limited (Bond Funds)
Return – 18.94%.
7. Vantage Dollar Fund – Investment One Funds Management Limited (Fixed Income Funds)
Return – 18.59%.
8. PACAM Equity Fund – PAC Asset Management Limited (Equity Based Funds)
Return – 18.09%.
9. Afrinvest Equity Fund – Afrinvest Asset Management Limited (Equity Based Fund)
Return – 18.03%.
10. Stanbic IBTC Aggressive Fund (Sub-Fund) – Stanbic IBTC Asset Management Limited (Equity Based Funds)
Return – 17.49%.
Great research.
Can we,the readers,also know the best performing PFAs in nigeria for the same period?