Best performing mutual funds in Nigeria as of October 2022

Nigerian mutual funds closed the month of October 2022 on a negative note, recording a negative return on investment (ROI) of 0.4%, even as the net asset value dropped by N13.83 billion to stand at N1.48 trillion.

This is according to data from Nigeria’s Securities and Exchange Commission (SEC). The Net Asset Value (NAV) of the 131 registered mutual funds with the SEC fell from N1.49 trillion as of 30th September to N1.48 trillion by 28th October 2022.

Further analysis shows that subscriptions in fixed-income funds dipped by N16.89 billion in the review month, while infrastructure funds gained N12.78 billion in the same period. Despite the negative performance of mutual funds in the review month, dollar-denominated funds led the list of best-performing funds.

The US dollar has been growing stronger against other currencies so far this year after the US Federal Reserve raised interest multiple times in a bid to quash the rising rate of inflation.

Most asset classes have recorded negative returns in 2022, hence, several investors have been reallocating their funds to dollar-denominated securities to hedge against inflation.

Nairametrics tracked the performance of these mutual funds by calculating the percentage change between the offer prices as of 30th September 2022 and 28th October 2022.

Below are the top-performing mutual funds in October 2022 based on their returns. We also highlighted their performance in terms of changes in net asset value and included profiles of the funds as described on their websites.

Nova Dollar Fixed Income Fund – Novambi Asset Management

The Nova Dollar Fixed Income Fund offers investors the opportunity to preserve their capital and earn returns from investments in medium to long-term securities such as Sovereign Eurobonds, Corporate Eurobonds, Money Market, and Cash with financial institutions recognized by the Securities & Exchange Commission.

30th September 2022

Fund Price – N330.41

28th October 2022

Fund Price – N337.55

Return – 2.2%

Ranking – Fifth

Nova Dollar Fixed Income Fund ranked fifth amongst the best-performing mutual funds for October 2022 with a return of 2.2%. Also, the net asset value of the fund increased by 2.1% from N84.47 million recorded as of 30th September 2022 to N86.24 million by the end of October 2022.

FBN Dollar Fund (Retail) – FBNQuest Asset Management Limited
FBN Dollar Fund is a mutual fund that provides investors with exposure to USD-denominated debt instruments. It has a moderate to medium risk and requires a minimum investment of $1000 for the retail fund.

30th September 2022

Fund Price – N55,258.07

28th October 2022

Fund Price – N56,487.7

Return – 2.2%

Ranking – Fourth

The net asset value of FBN Dollar fund gained 4.9% to stand at N13.02 billion as of 28th October 2022 from N12.42 billion recorded as of the previous month. The dollar fund ranked fourth on the list of best-performing mutual funds in the month under review.

30th September 2022

Fund Price – N1.65

28th October 2022

Fund Price – N1.79

Return – 8.4%

Ranking – First

PACAM Balanced Fund printed a return on investment of 8.4% in October 2022 to stand as the best-performing mutual fund in the month under review. On the other hand, the net asset value declined by 1.5% to stand at N156.35 million as of 28th October 2022.

What you should know about mutual funds

Mutual Funds are investment entities that pool funds from several investors and invest those funds in a diversified portfolio of securities such as equities, stocks, bonds, money market instruments and similar assets.
Mutual Funds are operated by professional fund managers, who invest the fund’s capital and attempt to produce capital gains and income for the investors.
The profit derived from the diversified pool of investments is shared with investors in the funds annually or semi-annually or as stipulated in the fund prospectus.