Mutual funds in Nigeria continue to post positive growth in recent times as investors look towards diversifying their investment portfolio so as to hedge against inflationary pressure, which is currently in double figures.
Mutual funds in Nigeria grew by an average of 0.54% in the month of July 2021, this is lower than the average 1.2% increase recorded in the previous month.
Also, out of the 128 funds registered on the Securities and Exchange Commission as of 30th July 2021, 72 (56.3%) of them grew in price in the review month as against 19 (14.8%), which declined while 37 (28.9%) remained flat.
As of 30th July 2021, the 128 listed mutual funds boasted a total net asset value (NAV) of N1.363 trillion, representing a marginal decline compared to N1.364 trillion recorded as of 2nd July 2021.
A cursory look at the analysis as carried out by Nairametrics Research showed that PACAM Eurobond fund recorded a 9.37% growth in price to stand top of the list, followed by Coronation Balanced fund with a 7.55% increase.
Nairametrics tracked the performance of these mutual funds by comparing the fund prices as of 2nd July 2021 with the fund prices as of 30th of July 2021, based on available data.
Below were the top-performing mutual funds in July 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.
SFS Fixed Income Fund (Fixed Income Fund) – SFS Capital Nigeria
SFS Fixed Income Fund is an open-ended Collective Investment Scheme launched in May 2014 and is managed by SFS Capital Nigeria Limited.
The Fund invests primarily in high yielding securities issued by the Federal Government of Nigeria, sub-nationals and highly rated corporate institutions
July 2nd, 2021
Fund Price – N1.01
July 30th, 2021
Fund Price – N1.05
Return – 3.96%
Ranking – Fifth
Commentary: SFS Fixed Income Fund recorded a growth of 3.96% in the month of July 2021 as stand in fifth position on the list of best performing mutual funds for the month. In the same vein, its net asset value also grew by 2.63% from N6.35 billion recorded as of 2nd July 2021 to N6.52 billion by the end of the month.
VETBANK ETF (Exchange-Traded Fund) – Vetiva Fund Managers
The Vetiva Banking ETF “VETBANK ETF” is an open-ended Exchange Traded Fund, which 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 consists 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.
July 2nd, 2021
Fund Price – N3.72
July 30th, 2021
Fund Price – N3.88
Return – 4.3%
Ranking – Fourth
Commentary: The VETBANK ETF is the only ETF on the list with a 4.3% increase in price, while the net asset value also grew by the same margin. The performance of the fund could be attributed to the growth recorded in the banking index of the Nigerian Exchange Group (NGX). According to data obtained from the NGX, the banking index grew by 4.06% in July 2021, hereby reducing the year-to-date decline to -2.97%.
Vantage Guaranteed Income Fund (Fixed Income Fund) – Investment One
Vantage Guaranteed Income Fund (VGIF) is a diversified portfolio of fixed income securities and equities designed to provide capital preservation and a stream of guaranteed income. It is a principal-guaranteed Fund and delivers a return equivalent to the Standing Deposit Facility rate (SDF).
According to information obtained from their website, unitholders are also entitled to an additional interest pay-out equivalent to 35% of the fund’s excess return above the SDF, in addition to the guaranteed return.
July 2nd, 2021
Fund Price – N1.00
July 30th, 2021
Fund Price – N1.05
Return – 5%
Ranking – Third
Commentary: Vantage Guaranteed Income Fund, which is managed by Investment One Funds Management Limited, recorded a growth of 5% in the month of July 2021, representing the third best performing fund and the second fixed income fund on the elite list. Meanwhile, the net asset value declined by 5.57% to close at N9.66 billion as of 30th July 2021.
Coronation Balanced Fund (Mixed Fund) – Coronation Asset Management
The aim of the Coronation Balanced Fund is to achieve capital appreciation over time while mitigating volatility associated with investing in Equities through a diversified portfolio that includes Fixed Income Securities such as Treasury Bills and Other Money Market Securities.
According to information obtained from the website of Coronation Asset Management, the asset allocation range for the fund is 50% – 70% in equities, 10% – 40% in treasury bills, 0% – 20% in bonds, while 10% – 40% in commercial papers, banker’s acceptance and other money market instruments.
July 2nd, 2021
Fund Price – N1.12
July 30th, 2021
Fund Price – N1.2
Return – 7.55%
Ranking – Second
Commentary: The mixed fund recorded a 7.55% price appreciation in the review period, representing the second-best performing mutual fund for the month. similarly, as the case with the Vantage fund, the net asset value declined by 3.44% to N271.2 million as of the end of the month.
PACAM Eurobond Fund (Bond funds) – PAC Asset Management Limited
This is a fund that invests in fixed income instruments such as FGN Bonds, Sub National Bonds, Corporate Bonds, and other investment-grade Fixed income instruments. This fund gives investors the opportunity to invest in secure and high-yielding Bonds offered by Federal and State Governments of Nigeria and large Corporates.
July 2nd, 2021
Fund Price – N42,936.2
July 30th, 2021
Fund Price – N46,960.52
Return – 9.37%
Ranking – First
Commentary: With a 9.37% return on investment, PACAM Eurobond fund was the best performing mutual fund in the month of July 2021. The bond fund grew its net asset value by 9.25% to close at N634.43 million as of 30th July 2021.
Bubbling under
UPDC REIT – 3.44%
Meristem Equity market fund – 3.35%
Nova Hybrid fund – 3.07%
Vantage Dollar fund – 2.78%
ARM Aggressive Growth fund – 2.77%