Mutual Funds in Nigeria performed averagely in May 2021 as only 39.5% of the funds recorded positive growth compared to the 53.8% growth rate recorded in the previous month.
Mutual funds are ideal investment vehicles involving a pool of funds from various investors, which are then invested in diversified portfolios such as equities, bonds, money market instruments, and other kinds of financial securities.
The profit derived from the diversified pool of investments is 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), at the end of May 2021, the number of registered mutual funds increased from 119 recorded as of 30th April 2021 to 124.
- On average, the listed funds recorded a 0.02% gain in May as against a 0.38% gain recorded in April 2021.
- Despite the increase in the number of funds, the total net asset value dipped by 3.29% from N1.46 trillion as of 30th April 2021 to N1.42 trillion by 28th May 2021.
- Performance by fund type shows that the bond funds grew by 0.7% on average followed by equity-based funds with a 0.57% yield on investment. The exchange-traded fund recorded a decline of 0.81% in the review month.
Nairametrics tracked the performance of these mutual funds by comparing the fund prices as of 30th April 2021 with the fund prices as of 28th May 2021.
Below are the top-performing mutual funds in May 2021. We also highlighted their performance in terms of changes in net asset value and included profiles of the funds as described on their websites.
AXA Mansard Equity Income Fund- AXA Mansard (Equity Funds)
The Axa Mansard Equity Fund is aimed at investors with high-risk appetite seeking income and strong potential for capital growth through an array of stocks. It is also targeted at investors who wish to reduce concentration risk and benefit from diversification and professional management.
This fund offers the potential for capital appreciation & dividends and is best suited to long-term investors with a relatively high appetite for risk assets, according to the information on their website.
30th April 2021
Fund Price – N124.80
28th May 2021
Fund Price – N130.64
Return – 4.68%
Ranking – Fifth
Commentary: The equity income fund managed by Axa Mansard Investments Ltd recorded a unit price growth of 4.68% in May 2021, from N124.80 as of the end of April 2021 to N130.64. However, the net asset value declined by 4.89% from N311.4 million as of 30th April 2021, to N296.2 million by the end of May.
Meristem Equity Market Fund – Meristem Wealth Management Ltd (Equity Funds).
Meristem Equity Market Fund is an open-ended mutual fund with the aim to achieve long-term capital appreciation through investment in equity securities with a focus on a portfolio of stocks listed on the Floor of The Nigerian Stock Exchange. The Fund is an actively managed open-ended collective investment scheme that mainly invests in equity.
The minimum investment offer is N10,000 with a minimum holding period of 30 days.
30th April 2021
Fund Price – N10.57
28th May 2021
Fund Price – N11.15
Return – 5.57%
Ranking – Fourth
Commentary: Meristem Equity market fund, managed by Meristem Wealth Management Ltd, is fourth on the list, recorded unit price appreciation of 5.57% from N10.57 as of April 2021 to N11.15 in May 2021. Meanwhile, the fund’s net asset value also decreased by 13.61% from N211.49 million as of 28th April 2021 to N182.71million at end of May 2021.
Afrinvest Dollar Fund – Afrinvest Asset Management Ltd (Bond Funds)
The Afrinvest Dollar Fund is an open-ended mutual fund that invests in Dollar-denominated Securities, floated by Nigerian Sovereigns, supranational entities, and Corporates as may be determined by the Fund Manager.
The objective of the Fund is to achieve income generation and capital appreciation in the short to medium term for investors with dollars and designed to deliver significantly higher returns than what is obtainable from the average domiciliary account in the local banks. There is free entry and exit for investors subject to the prevailing Fund price.
The issue price is $100 per unit and the minimum initial investment for the offer is 10 units ($1000) of the funds, while additional/subsequent investments will be issued in multiples of 1-unit equivalent to $100.
30th April 2021
Fund Price – N41,826.33
28th May 2021
Fund Price – N45,040.47
Return – 7.68%
Ranking – Third
Commentary: The Afrinvest Dollar Fund managed by Afrinvest Asset Management Limited performed as the third-best fund in May 2021. The unit price appreciated by 7.68% from N41,826.33 in April 2021 to N45,040.47 in May 2021.
The net asset value of the fund also increased by 7.41% from N653.34 million as of 30th April 2021, to N701.76 million at end of May 2021.
Legacy USD Bond Fund- First City Asset Management Limited (Bond Funds)
The Legacy USD Bond Fund was launched on the 8th of January, 2018, and was listed on the Nigerian Stock Exchange on the 23rd of April, 2018. The Fund is a Securities & Exchange Commission 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.
The minimum initial subscription is 1,500 units (at prevailing market price per unit), minimum additional purchase is 1,000 units (at the prevailing market price per unit) with a minimum investment period of 6 months.
30th April 2021
Fund Price – N379.50
28th May 2021
Fund Price – N409.50
Return – 7.91%
Ranking – Second
Commentary: The fund managed by First City Asset Management Ltd recorded a unit price growth of 7.91% in May 2021. The net asset value also appreciated by 11.31% from N4.37 billion as of 30th April 2021, to N4.86 billion at the end of May 2021.
Nigerian Entertainment Fund- Greenwich Asset Management (Mixed Funds)
This is a Balanced Fund that aims to promote an investment culture among participants, especially in the entertainment industry. The Fund provides investors with the opportunity to earn returns from investing in investment-grade instruments as well as indirectly investing in Nigeria’s entertainment industry.
It invests in stocks of quoted companies, money market instruments, real estate investment trust schemes, and debt instruments targeted at the entertainment sector.
30th April 2021
Fund Price – N129.86
28th May 2021
Fund Price – N157.11
Return – 20.98%
Ranking – First
Commentary: This mixed fund by Greenwich Asset Management Limited, which led the list of best-performing mutual funds in the month, appreciating by 20.98% in May 2021.
Also, the net asset value as of 28th of May 2021, was N2.058 billion indicating an impressive and significant growth of 776.79% when compared to N234.715 million recorded as of April 30th, 2021.
The following funds make up the rest of the top 10 best performing mutual funds for the month:
- Investment One Fund Management, Ltd-Vantage Dollar Fund (Fixed Income Fund)
Return – 3.01%
- Zenith Asset management Ltd- Zenith Ethical Fund (Ethical Fund)
Return – 2.91%
- New Gold Managers (Proprietary) Limited- New Gold ETF (Exchange Traded Fund)
Return – 2.22%
- FBN Capital Asset Management -FBN Nigeria Smart Beta Equity Fund (Equity Funds)
Return – 2.14%
- Stanbic IBTC Asset Management – Stanbic IBTC Aggressive Fund (Sub Fund) – (Equity Fund)
Return – 1.64%
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