Nigeria’s pension asset underneath administration hits N12.3trillion in December 2020

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Mutual Funds are a terrific type of investing particularly for passive traders. They are designed to pool funds from numerous traders with the only objective of investing them in a portfolio of investments (shares, bonds, treasury payments and so forth).

The 12 months 2020 was ravaged by the covid-19 outbreak in Nigeria, inflicting a decline in most financial actions. However, main mutual funds in Nigeria recorded double-figure progress in 12 months, a motive for traders to smile regardless of the pandemic.

According to knowledge from the Security and Exchange Commission (SEC), 54.3% of the registered funds recorded optimistic progress within the 12 months, 37.1% remained unchanged whereas solely 10 (15.9%) funds recorded detrimental progress within the interval.

READ: Pension fund administrators pile up cash in anticipation of withdrawals

As of thirty first December 2020, the Security and Exchange Commission (SEC) registered a complete of 116 mutual funds with over N1.57 trillion internet asset worth slicing throughout a number of fund varieties.

Below is a breakdown of the fund varieties accessible to traders.

To decide the perfect performing Funds in 2020, we in contrast the Fund Prices as of twenty seventh December 2019 with the Fund Prices as of the final day of December 2020 (thirty first December).

These have been the highest 5 performing mutual funds in 2020. We additionally highlighted their efficiency when it comes to modifications in internet asset worth and included profiles of the Funds as described on their web sites.

READ: Nigeria’s mutual fund asset value hits N1 Trillion


AIICO Balanced Fund – AIICO Capital Limited (Mixed Funds)

AIICO Balanced Fund is an actively managed open-ended Fund. The Fund invests primarily in equities, authorities securities, fastened deposit, fastened revenue securities.

December 27th, 2019

Fund Price – N2.50

December 31st, 2020

Fund Price – N3.70

Return – 48.2%

Ranking – Fifth

Commentary: This is a Mixed Fund by AIICO Capital Limited. The Fund grew by 48.2% in 2020. The internet asset worth stood at N171.60 million as of thirty first December 2020, rising by 57.7% in comparison with N108.8 million recorded in 2019.

READ: Understanding how Mutual Funds and ETFs work in Nigeria


Lotus Capital Halal ETF – Lotus Capital Limited (Exchange Traded Fund)

The Lotus Halal Equity Exchange Traded Fund “LHE ETF” is an open-ended fund that tracks the efficiency of the NSE-Lotus Islamic Index (NSELII). It is designed to allow traders receive market publicity to the securities of the constituent firms of the NSE-Lotus Islamic Index and to duplicate the value and yield efficiency of the index.

December twenty seventh, 2019

Fund Price – N8.39

December thirty first, 2020  

Fund Price – N12.73

Return – 51.7%

Ranking – Fourth

Commentary: This is an Exchange Traded Fund by Lotus Capital Limited, grew by 51.7% within the evaluation interval. The internet asset worth additionally stood at N613.59 million as of thirty first December 2020, rising by 51.7% in comparison with the 2019 NAV of N404.4 million.

READ: Investors pump N7 billions into New Gold ETF


PACAM Equity Fund – PAC Asset Management Limited (Equity-Based Fund)

PACAM Equity Fund is a pure fairness fund that invests funds predominantly in a portfolio of Nigerian firms, utilizing a rigorous research-based system.

The fund gives long-term capital preservation by investing not less than 75% of the fund’s property in a diversified portfolio of high-quality firms listed on the Nigerian Stock Exchange. In order to handle liquidity, the fund might also make investments as much as 23% in short-term cash market devices.

December twenty seventh, 2019

Fund Price – N1.02

December thirty first, 2020

Fund Price – N1.59

Return – 55.6%

Ranking – Third

Commentary: This is an Equity-Based Fund by PAC Asset Management Limited. The Fund grew by 55.6% in 2020. The efficiency is spectacular contemplating that it’s purely targeted on Equity, which is a mirrored image of the efficiency recorded within the equities market of the NSE in 2020. The internet asset worth grew by 41.1% from N204.9 million recorded in 2019 to N289.2 million in 2020.


New Gold ETF – New Gold Managers (Exchange Traded Fund)

The NewGold Exchange Traded Fund (NewGold) is an ETF listed on the Nigerian Stock Exchange in December 2011. NewGold tracks the value of gold and provides institutional and retail traders the chance to spend money on a listed instrument (structured as a debenture) that’s absolutely backed by gold bullion.

The fund is managed by NewGold Managers Limited whereas the sponsoring dealer is Vetiva Capital Management Limited.

December twenty seventh, 2019

Fund Price – N5,220

December thirty first, 2020

Fund Price – N9,100

Return – 74.3%

Ranking – Second

Commentary: Gold costs have been on the up because the Covid-19 pandemic took maintain of the worldwide financial system, which has mirrored on the efficiency recorded on the gold ETF fund. New Gold ETF grew by 74.3% in 2020 whereas the Net Asset Value recorded 1,621% improve to shut at N13.2 billion as at thirty first December 2020.

New Gold additionally bought a significant increase from traders who discovered dual-listed firms as a method of repatriating {dollars} in a foreign country. This is finished by shopping for shares domestically after which promoting on a overseas inventory trade in order to get their cash out.


VI ETF – Vetiva Fund Managers Limited (Exchange Traded Funds)

The Vetiva Industrial ETF “VETIND ETF” is an open-ended Exchange Traded Fund managed by Vetiva Fund Managers Limited. The VETIND ETF is designed to trace the efficiency of the constituent firms of the NSE Industrial Index and replicate the value and yield efficiency of the Index.

The NSE Industrial Index includes the highest 10 firms within the Industrial sector listed on the Nigerian Stock Exchange (NSE), when it comes to market capitalization and liquidity and is a worth index weighted by adjusted market capitalization.

December twenty seventh, 2019

Fund Price – N10.49

December thirty first, 2020

Fund Price – N20.52

Return – 95.6%

Ranking – First

Commentary: VI ETF is the primary Fund on the record of greatest performing Mutual Funds in 2020. The fund worth grew by 95.6% within the 12 months underneath evaluation. The internet asset worth additionally grew by 138.1% to shut at N216 million as of thirty first December 2020.


Bubbling underneath…

The following Funds make up the remainder of the highest 10 on our record in ascending order;

Lead Balanced Fund – Lead Asset Management Limited (Mixed Funds)
Return – 34.4%

Legacy Equity Fund – First City Asset Management Limited (Equity-Based Funds)
Return – 36.3%.

Stanbic IBTC Nigerian Equity – Stanbic IBTC Asset Management Limited (Equity-Based Fund)
Return – 36.6%.

VG 30 ETF – Vetiva Fund Managers Limited (Exchange Traded Fund)
Return – 38.6%.

Stanbic IBTC lmaan Fund – Stanbic IBTC Asset Management Limited (Ethical Fund)
Return – 41.9%.

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