Mutual funds in Nigeria closed the week on a negative note, with an average 2% negative returns and N1.62 billion decline in the net asset value (NAV). Nairametrics tracks the performance of listed mutual funds by the Securities and Exchange Commission (SEC).
The analysis carried out by Nairalytics – the research arm of Nairametrics, compares the unit price of the 124 listed funds between 20th and 27th of May 2022. According to the analysis, Nova dollar fixed fund, FSDH dollar fund, and Lead fixed income fund lead the list of gainers in the review week.
A further glance at the data, shows that the money market fund category recorded the highest increase in NAV, growing by N3.08 billion to stand at N612.43 billion, while dollar fixed income funds recorded the highest decrease (N5.03 billion).
Despite the downturn recorded by most of the funds in terms of returns on investment, some of the investment schemes recorded significant rise in their net asset value, either as a result of increase in unit price or increased subscription from investors.
Notably, Stanbic IBTC money market fund gained over N2.9 billion in net asset value in the week under review, followed by Stanbic IBTC absolute fund with N2.39 billion increase, while FBN bond fund gained N2.26 billion.
Meanwhile, the biggest schemes in terms of highest NAV are Stanbic IBTC’s money market fund, dollar fund, and FBN money market fund with N233.5 billion, N173.64 billion, and N170.52 billion respectively.
Best performers
Below is the list of best performing mutual funds for the week, based on their returns;
Stanbic IBTC Infrastructure Fund – Stanbic IBTC Asset Mgt. Limited (Infrastructure fund)
The Stanbic IBTC Infrastructure Fund is fund tailored to address certain challenges by providing infrastructural investment in critical sectors of the economy, such as energy, telecommunications, healthcare, water treatment, waste management, communications, and transportation.
The fund ranked fifth on the list of mutual funds with the highest ROI for the week under review with 0.2% growth.
20th May 2022
Fund Price – N103.11
27th May 2022
Fund Price – N103.34
Return – 0.2%
Ranking – Fifth
The Stanbic IBTC Infrastructure Fund also saw its net asset value increase by N15.42 million during the week to stand at N6.97 billion, representing a 0.2% increase week-on-week.
PACAM Fixed Income Fund – PAC Asset Management Limited (Bonds/Fixed Income Fund)
PACAM Fixed Income 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 giving investors opportunity to invest in secure and high yielding Bonds offered by Federal and State Governments of Nigeria and large Corporates.
The fund allocates 70 – 90% of its funds into assets such as bonds and other debt instruments, while 10-30% of the funds goes into other fixed-income securities.
20th May 2022
Fund Price – N11.76
27th May 2022
Fund Price – N11.79
Return – 0.2%
Ranking – Fourth
The fund ranks fourth on the list of best performing mutual funds for the week with a return on investment of 0.2%, while growing its net asset value by 0.3% to stand at N55.36 million.
Lead Fixed Income Fund – Lead Asset Management Limited (Bonds/Fixed income Fund)
The lead Fixed Income Fund, which is managed by Lead Asset Management Limited, recorded a 0.3% positive ROI as its unit price increased from N189.73 recorded as of 20th May 2022 to N190.38 by the end of the review week.
The fund stands third on the list of best performing mutual funds in the period under review.
20th May 2022
Fund Price – N189.73
27th May 2022
Fund Price – N190.38
Return – 0.3%
Ranking – Third
Lead Fixed income fund recorded a 0.3% positive return in the review week, while the net asset value appreciated by 0.1% to stand at N754.7 million.
FSDH Dollar Fund – FSDH Asset Management (Dollar Fixed income fund)
The Fund is an open-ended mutual fund that will invest in US Dollar denominated Fixed Income Securities issued by Nigerian Sovereign and Corporate Entities, and is authorized by the Securities and Exchange Commission in accordance with the provisions of Section 160 of the ISA.
According to the company, the objective of the Fund is to provide customers with the opportunity to invest in dollar-denominated instruments, in order to achieve consistent cash flow and capital appreciation over the long term.
20th May 2022
Fund Price – N459.2
27th May 2022
Fund Price – N460.98
Return – 0.4%
Ranking – Second
Despite the positive return in the unit price of the FSDH dollar fund, its Net Asset Value declined by 1.5% to stand at N2 billion by the end of the week. This indicates that investors withdraw some of their funds during the week.
Nova Dollar Fixed Income Fund – Novambi Asset Management (Dollar Fixed income fund)
The Nova USD Fixed Income Fund (“the 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.
According to the company’s website, the fund gives investors access to US Dollar-denominated securities and returns, with a minimum investment of $1,000.
20th May 2022
Fund Price – N339.44
27th May 2022
Fund Price – N364.12
Return – 7.3%
Ranking – First
The fund recorded 7.3% growth in its unit price and net asset value (NAV). The NAV of the fund rose from N86.72 million recorded as of the previous week to N93.03 million by the end of the review week.
About mutual fund
- Mutual Funds are investment entities that pool funds from a number of investors and invest those funds in diversified portfolio securities such as equities, stocks, bonds, money market instruments and similar assets.
- They allow you pool your money with other investors to “mutually” buy stocks, bonds, and other investments.
- Mutual Funds are operated by professional money managers who decide which securities to buy (stocks, bonds, etc.) and when to sell them.
- You get exposure to all the investments in the fund and any income they generate.
- It also offers a wide variety of investment strategies and styles.