By Quantitative Financial Analytics
According to analysis conducted by Quantitative Financial Analytics, the Nigerian Mutual Funds made an estimated N11.9 billion in the first nine months of 2017.
This figure was harvested from the NAV Summary data report released by the Security and Exchange Commission (SEC).
This is coming as equity market performance improved markedly towards the third quarter of the year following improvements in the macro economic conditions of Nigerian economy.
Additionally, increases in yield in money market funds during the first and second quarter of the year also helped to shore up total fund performances.
Because of the impressive performance of the equity market, equity based mutual funds contributed almost half of the 11.9 billion gains.
Precisely, equity funds generated an estimated N5.1 billion with about N1.2 billion gains coming from Stanbic IBTC Nigerian Equity fund.
Not even the recent plunge in yield could stop the gains from coming to money market fund investors.
Of the 11.9 billion, 2.8 came from money market funds. Every fund made profit within the period under review except for the UBA Bond fund.
As noted earlier, Equity based mutual funds emerged as the biggest wealth creators during the period as they recorded an average performance of 22 percent.
On monetary terms, equity funds captured the first 5 positions in the performance table while Vetiva Griffin ETF 30 sneaked into the 6th position beating other ETFs.
Percentage wise, however, the performance table is very mixed as Acap Income fund gathered 97.53 percent followed by New Gold ETF which returned 50.38 percent.
Of all the 82 mutual funds being reported on by the SEC, 50 recorded double-digit returns.
The funds did so well, that 13 of the beat the All-Share Index (ASI) which returned 31 percent.
Though past performance is not an indicator to futures performance, suffice it to say that at this rate of performance, mutual funds may be an asset class worth considering by passive and retail investors without the knowhow for investment selection and asset allocation.
