Nigerian Mutual Funds performed positively in the month of June 2021, largely driven by stellar performances from Exchange-traded funds and commendable growth in dollar-denominated funds.
The positive performance in the month of June could be attributed to Nigerians’ pursuit of investments in foreign currencies especially dollar-denominated funds in order to hedge galloping inflation, while the managers keep striving to outperform each other by strategically investing their clients’ funds and returning impressive returns.
According to data from the Securities and Exchange Commission, Alpha ETF was the best performing mutual fund in the month of June 2021, with an 18.31% growth in unit price, while its net asset value grew by 3.83% in the review period.
- A cursory look at the analysis shows that 56.3% of the total registered funds recorded positive growth as against 10.9%, which declined in the same period while 32.8% of the funds remained flat.
- As of 2nd July 2021, there were 128 registered funds with a total net asset value of N1.36 trillion. It is worth noting that despite the positive growth in unit prices, the net asset value declined by 3.67% compared to N1.42 trillion recorded as of 28th May 2020.
- On average, the unit price of the mutual funds grew by 1.2% in the review period, from 28th May 2021 to 2nd July 2021.
Nairametrics tracked the performance of these mutual funds by comparing the fund prices as of 2nd July 2021 with the fund prices as of 28th of May 2021, based on available data.
Below were the top-performing mutual funds in June 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.
VCG ETF (Exchange Traded Fund) – Vetiva Fund Managers Limited
The Vetiva Consumer ETF “VETGOODS ETF” 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 Exchange Group (NGX) in terms of market capitalization and liquidity and is a price index weighted by adjusted market capitalization
May 28th, 2021
Fund price – N5.64
July 2nd, 2021
Fund Price – N6.01
Return – 6.56%
Ranking – Fifth
Commentary: The growth of the VCG ETF is largely attributed to the bullish performance of the consumer goods index of the Nigerian Exchange Group (NGX) in the month of June 2021. As of 25th June 2021, the NGX CG index had recorded a month-to-date growth of 2.65% and a quarter-to-date growth of 1.18%. The net asset value of the fund also grew by 6.56% to close at N154.34 million.
Cordros Dollar Fund (Fixed Income Fund) – Cordros Asset Mgt. Ltd.
The Cordros Dollar Fund is an actively managed open-ended unit trust scheme whose main objective is to achieve capital appreciation in the medium to long term for Investors with USD. The fund invests in US Dollar-denominated securities like Sovereign Eurobonds, Corporate Eurobonds, Money Market instruments, and other quoted Corporate Eurobonds.
According to information on their website, the Fund allows investors to conveniently invest and earn returns in US Dollars. The objective is to offer competitive returns than that obtainable from an average domiciliary bank account.
May 28th, 2021
Fund price – N40,443.32
July 2nd, 2021
Fund Price – N43,850.01
Return – 8.42%
Ranking – Fourth
Commentary: The dollar-denominated fund managed by Cordros Asset Management grew by 8.42% in June 2021. Its net asset value also grew significantly by 35.43% to close at N2.75 billion as of 2nd July 2021.
ARM Eurobond Fund (Bond Funds) – Asset & Resources Mgt.
The ARM Eurobond Fund is an open-ended, low-risk mutual fund that is invested in Dollar-denominated Eurobond floated by the Federal Government of Nigeria and top-tier Nigerian corporates.
May 28th, 2021
Fund price – N411.44
July 2nd, 2021
Fund Price – N446.62
Return – 8.55%
Ranking – Third
Commentary: ARM Eurobond Fund grew by 8.55% in the period under review, to close at N446.62, while its net asset value also grew by 8.06% to close at N5.84 billion. The positive performance could be attributed to investors’ interest in dollar-denominated funds in other to outperform Nigeria’s inflationary session.
Lotus Capital Halal ETF (Exchange Traded Fund) – Lotus Capital Limited
The Lotus Halal Equity Exchange Traded Fund “LHE ETF” is an open-ended fund that tracks the performance of the NSE-Lotus Islamic Index (NSELII). It is designed to enable investors obtain market exposure to the securities of the constituent companies of the NSE-Lotus Islamic Index and to replicate the price and yield performance of the index.
May 28th, 2021
Fund price – N12.32
July 2nd, 2021
Fund Price – N13.5
Return – 9.58%
Ranking – Second
Commentary: The Lotus Halal ETF managed by Lotus Capital Limited stands second on the list of best performing mutual funds in the month. The fund grew by 9.58%, while the net asset value grew with the same percentage to close at N650.7 million.
ALPHA ETF (Exchange Traded Fund) – Greenwich Asset Mgt.
Greenwich Alpha is an open-ended ETF that tracks the NSE 30 Index; an index, which constitutes 30 of the most liquid and capitalized stocks trading on the Exchange. It is designed for investors to access the constituent companies of the NSE 30 index, thereby getting the performance of the index.
May 28th, 2021
Fund price – N100
July 2nd, 2021
Fund Price – N118.31
Return – 18.31%
Ranking – First
Commentary: Alpha ETF was the best performing mutual fund in the review fund, recording a significant increase of 18.31% increase in fund unit price, largely driven by the performance of the 30 most valuable companies listed on the floor of the Nigerian Exchange. According to the weekly report of the NGX, the NSE-30 index grew by 1.05% MTD as of 25th June 2021.
Also, the net asset value grew by 3.83% to close at N679.4 million as of 2nd July 2021.
Bubbling under
- Zenith equity fund – 6.38%
- GDL equity fund – 6.27%
- Nigeria International Debt Fund – 5.84%
- Anchoria Fixed Income Fund – 5.18%
- Vantage Equity Income Fund – 4.8%
What you should know about Mutual Funds
Mutual funds are collective investments that are professionally managed on behalf of various investors from whom money is pooled. They have the advantage of being professionally managed, offer diversification, and play an important role in planning one’s retirement or achieving a financial goal.
Investing in mutual funds makes it easier to invest in different sectors of the economy at a reduced or shared cost, especially for passive investors.
What do think about IBTC mutual fund
I am a business man, I want to join nairametrics. Also have read through others so I believe that I can progress in nairametrics.