Top-Performing Nigeria Mutual Funds in 2023: A Comprehensive Overview.
The Nigerian investment landscape showcased remarkable profitability for investors throughout 2023, spanning various capital market instruments, with mutual funds taking center stage.
Based on data from the Securities Exchange Commission (SEC), Nigerian mutual funds delivered an impressive average return of 19% in 2023. A deeper analysis revealed that equity-based funds outperformed other mutual funds, boasting a substantial 49.6% return. This aligns with the stellar performance of the Nigerian stock market, which gained 45.9% in 2023 and continued its positive trajectory into 2024, achieving a year-to-date gain of 26.43%.
Notably, Real Estate Investment Trusts (REITs) followed closely with a gain of 34.2%, ethical funds with 34%, and balanced funds with a solid 31.6% return. Standing out as the best-performing mutual fund for the year, Stanbic IBTC Asset Management’s UPDC Real Estate Investment Trust led the pack with an outstanding 113.33% return.
Best-Performing Balanced Funds
Balanced funds, comprising both equities and bonds, maintained a positive outlook in 2023. Among the 24 listed balanced funds, the average return stood at 31.6%, with all funds posting positive returns except for Core Value Mixed Fund, which remained flat.
- ValuAlliance Value Fund
- Fund Manager: ValuAlliance Asset Management Limited
- Return: 83.34%
- FBN Balanced Fund
- Fund Manager: FBNQuest Asset Management Limited
- Return: 46.24%
- Women’s Balanced Fund
- Fund Manager: Chapel Hill Denham Management Limited
- Return: 45.54%
Best-Performing Bond/Fixed-Income Funds
Bond and fixed-income funds, encompassing various debt instruments, reported positive returns across the board. With 32 funds in this category, the average year-to-date return was 8.4%.
- Stanbic IBTC Conservative Fund (Sub Fund)
- Fund Manager: Stanbic IBTC Asset Management Limited
- Return: 24.6%
- DLM Fixed Income Fund
- Fund Manager: DLM Asset Management Limited
- Return: 14.4%
- Nigeria International Debt Fund
- Fund Manager: Afrinvest Asset Management Limited
- Return: 13.46%
Best-Performing Dollar Funds
Dollar funds, comprising Eurobonds and fixed income, demonstrated positive returns in 2023. With 21 registered dollar funds, the average return reached 8.5%.
- Nova Dollar Fixed Income Fund
- Fund Manager: Novambi Asset Management
- Return: 19.69%
- AVA GAM Fixed Income Dollar Fund
- Fund Manager: AVA Global Asset Managers Limited
- Return: 17.98%
- Futureview Dollar Fund
- Fund Manager: Futureview Asset Management Limited
- Return: 14.16%
Best-Performing Equity-Based Funds
Equity-based mutual funds, comprised mainly of stocks, displayed double-digit growth, recording an annual average return of 49.62%.
- Futureview Equity Fund
- Fund Manager: Futureview Management Limited
- Return: 86.02%
- Stanbic IBTC Aggressive Fund
- Fund Manager: Stanbic IBTC Asset Management Limited
- Return: 66.35%
- Afrinvest Equity Fund
- Fund Manager: Afrinvest Asset Management
- Return: 64.39%
Best-Performing Ethical Funds
Ethical funds, driven by socially responsible investing, posted positive returns with three funds in this category.
- Stanbic IBTC Ethical Fund
- Fund Manager: Stanbic IBTC Asset Management Limited
- Return: 44.44%
- ESG Impact Fund
- Fund Manager: Zenith Asset Management Limited
- Return: 37.84%
- ARM Ethical Fund
- Fund Manager: Asset & Resources Management Company Limited
- Return: 19.64%
Best-Performing Money Market Funds
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Money market funds, known for their stability, recorded positive returns, with an average of 10.4% among the 30 funds registered.
- AIICO Money Market Fund
- Fund Manager: AIICO Capital Limited
- Return: 14.24%
- Trustbanc Money Market Fund
- Fund Manager: Trustbanc Asset Management Limited
- Return: 14.05%
- Emerging Africa Money Market Fund
- Fund Manager: Emerging Africa Asset Management Limited
- Return: 13.33%
Best-Performing Real Estate Investment Trusts
Real Estate Investment Trusts (REITs) showcased strong performances, with UPDC Real Estate Investment Trust leading the way.
- UPDC Real Estate Investment Trust
- Fund Manager: Stanbic IBTC Asset Management Limited
- Return: 113.33%
- Union Homes REITS
- Fund Manager: SFS Capital Limited
- Return: 34.24%
- SFS Real Estate Investment Trust Fund
- Fund Manager: SFS Capital Limited
- Return: 13.63%
Best-Performing Shariah-Compliant Funds
Shariah-compliant funds, adhering to Islamic principles, demonstrated positive returns across three funds.
- Stanbic IBTC Imaan Fund
- Fund Manager: Stanbic IBTC Asset Management Limited
- Return: 43.84%
- Lotus Halal Investment
- Fund Manager: Lotus Capital Limited
- Return: 18.16%
- FBN Halal Fund
- Fund Manager: FBNQuest Asset Management
- Return: 13.22%
This comprehensive overview highlights the impressive performance of various mutual funds in Nigeria throughout 2023, offering valuable insights for investors seeking strategic investment opportunities.
