The total Net Asset Value (NAV) of Nigeria’s mutual fund as at the end of year 20202 had risen to N1.572 trillion, from N1.042 trillion recorded in 2019, representing an increase of 50.79%. This is acccording to data from Security and Exchange Commission, SEC.
that in 2020, mutual fund contributions amounted to about N0.903 trillion while redemptions amounted to about N0.42 trillion. Analysis points to the fact that mutual funds gathered an estimated sum of N46.7 billion in gains.
Compared to 2019, the capital activities, comprising subscriptions and redemptions were slightly far afield. In 2019, subscriptions stood at N0.52 trillion while redemptions rose to N0.14 trillion, resulting in a net inflow of N0.38 trillion. Net inflows for 2020 stood at N0.483 trillion. Unlike in 2019, when mutual funds made an estimated gain of N9.9 billion, the N46.7 billion made in 2020, made Corona Virus a non-issue for the industry.
Majority of the funds ended 2020 in the black, as 15, out of 118 mutual funds on the SEC’s NAV Summary Report. The good thing about it is that no particular fund group dominated in making gains.
“Although most of the funds that recorded huge gains came from the Euro Dollar category, Bond and Fixed income funds were not left behind as a whole lot of them stood out with mouth-watering gains. Out of nowhere, Stanbic IBTC Nigeria Equity fund sneaked in with some sizable gains too.
“On the downside, the two funds that recorded the greatest losses came from the Real Estate Investment fund category. Apparently, the Real Estate Investment Trust funds have not been doing good. Be that as it may, it is laudable that the Nigerian mutual fund industry stood out in 2020,” the statement added.