Mutual Funds Investment In Nigeria Shoots Through The Roof. Hits Over $2 billion
Mutual money managers in Nigeria are having the best of fun. Figures from Nigeria’s Securities and Exchange Commission show that it is one sector of the country’s Stock Exchange that is still making profit. The value of mutual funds investment hit N746.5bn at the end of May 2019 according to SEC.
Mutual funds are professionally-managed investment programs that pool money from many investors to purchase securities.
They are made up of ethical funds, equity-based funds, money market funds, bonds funds, fixed income funds, real estate investment funds, and mixed funds.
A Break Down of The Figures
The figures show that:
- Money market fund, which invests only in highly liquid instruments such as cash, cash equivalent securities and high credit rating debt-based securities with a short-term maturity — less than 13 months-recorded the highest investment of N563.9bn, made up of funds pooled from 19 investment schemes.
- Money market funds offer high liquidity with a very low level of risk.
The Schemes Under The Fund Are:
Top Money Managers
| S/N | NAME OF COMPANY | VALUE OF MONEY MARKET FUND (NAIRA) |
| 1 | Stanbic IBTC Money Market Fund () | 262.66 billion |
| 2 | FBN Money Market Fund () | 163.27 billion |
| 3 | ARM Money Market Fund | 57.88 billion |
| 4 | AXA Mansard Money Market Fund
|
25.73 billion |
| 5 | Abacus Money Market Fund
|
9.88 billion |
| 6 | Zenith Money Market Fund | 7.52 billion
|
| 7 | EDC Money Market Fund Class A)
|
6.16 billion |
| 8 | Cordros Money Market Fund
|
5.83 billion |
| 9 | Coronation Money Market Fund | 5.82 billion |
| 10 | Legacy Money Market Fund
|
5.42 billion |
| 11 | United Capital Money Market Fund | 4.58 billion |
| 12 | Greenwich Plus Money Market Fund | 3.24 billion |
| 13 | Chapel Hill Denham Money Market Fund | 1.62 billion |
| 14 | AIICO Money Market Fund | 979 million |
| 15 | GDL Money Market Fund | 953 million |
| 16 | Meristem Money Market Fund | 782 million |
| 17 | PACAM Money Market Fund | 601 million |
| 18 | Afrinvest Plutus Fund | 596 million |
| 19 | EDC Money Market Fund Class B | 368 million |
The top three fund managers under the money market fund were:
- Stanbic IBTC Asset Management Limited
- FBN Capital Asset Management Limited
- Asset & Resources Management Company Limited.
Fixed income funds increased by 11.56 percent month-on-month to N78.27bn from N70.16bn in April.
Real estate funds, pooled from three sources:
- Skye Shelter Fund
- Union Homes REITs
- UPDC Real Estate Investment Fund –
Real estate funds stood at N45.55bn, an increase of 0.73 percent from the N45.22bn recorded in April.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.