Best performing Mutual Funds in Q1 2021

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Data obtained from the Security and Exchange Commission (SEC), showed that only 25 mutual funds out of the 118 registered funds in the month of February recorded price gains in the period.

Mutual funds have always been considered as a good alternative investment opportunity, particularly for retail investors because it gives them access to diversified and professionally managed portfolios at a low price.

After delivering an impressive growth of 51.6% in 2020 and kicking off 2021 with a marginal decline of 0.13% in January, the total net asset value of the registered mutual funds also declined further by 0.94% between January and February 2021.

According to SEC, the total net asset value of the 118 registered mutual funds in Nigeria was N1.56 trillion across the 9 mutual fund types offered as of February 26, 2021.

READ: Top 5 Fund Managers in Nigeria by asset value

A comparison of the performance of the fund types month-on-month indicated that despite the fall in total net asset value at the end of February, real estate bonds’ net asset value grew by 17.48%, exchange traded bonds by +11.72%, fixed income funds by +5.27% while the bond funds grew by +1.26%. The infrastructure bonds sustained their value in January, recording no change in the month. Other funds recorded losses with the money market fund recording the highest loss of 7.09% in net asset value during the month.

It is also worthy of note that out of the 118 registered mutual funds, only 32 mutual funds had increased in net asset value between January and February 2021 while only 25 mutual funds had increased in unit price.

Below are the top-performing mutual funds in the month of February 2021. We also highlighted their performance in terms of returns and changes in net asset value and included profiles of the funds as described on their websites.

READ: Nigeria’s mutual fund asset value hits N1 Trillion


FBNQuest Asset Management Limited – Retail (Bond Funds)

The FBN Nigeria Eurobond is a fixed income mutual fund that invests in the US Dollar-denominated debt instruments issued by the Nigerian government and reputable corporate institutions. Investments can be made into this fund by both retail and institutional investors.

To get started as a retail investor, a minimum investment of $2,500 is required and the minimum holding period is 180 days.

January 29, 2021

Fund Price – N49,736.31

February 26, 2021

Fund Price – N51,765.35

Return – 4.08%

Ranking – Fifth

Commentary: The retail bond fund package of FBNQuest Asset Management Limited performed as the fifth-best fund in February 2021. The unit price appreciated by 4.08%, closely behind the growth of the institutional bond fund managed by the same asset manager.

The net asset value of the fund increased by 7.81% from N4.62 billion as of 29th January 2020, to N4.98 billion as at end of February 2021.

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FBNQuest Asset Management Limited – Institutional (Bond Funds)

The FBN Nigeria Eurobond (USD) designed for institutional investors is also invested in US Dollar-denominated debt instruments issued by the Nigerian government and reputable corporate institutions and managed by FBNQuest Asset Management Limited.

To begin investment as an institutional investor, a minimum of $100,000 is required for a minimum tenor of 180 days.

January 29, 2021

Fund Price – N49,681.06

February 26, 2021

Fund Price – N51,712.01

Return – 4.09%

Ranking – Fourth

Commentary: The FBNQuest Asset Management Limited bond funds created for institutional investors is the fourth in the list best performing fund in the month of February, growing its unit price by 4.09% and net asset value by 4.41% from N578.37 million in January 2021 to N603.85 million in February 2021.

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Nova Dollar Fixed Income Fund (Fixed Income Fund) – Novambl Asset Management

Nova USD Fixed income fund is an actively managed open-ended unit trust scheme managed by Novambl Asset Management. The fund has an asset allocation range target of 0% – 80% on sovereign Eurobonds, 0% – 80% on corporate Eurobonds, 0% – 50% on money market instruments and finally 0% – 5% on Cash.

The issue price is $100 per unit and the minimum initial investment for the offer is 5 units of the funds, while additional/subsequent investments will be issued in multiples of 5 units and payable in full, upon subscription.

January 29, 2021

Fund Price – N393.57

February 26, 2021

Fund Price – N410.23

Return – 4.23%

Ranking – Third

Commentary: Nova dollar fixed-income fund, managed by Novambl Asset Management Ltd, recorded unit price appreciation of 4.23% from N393.57 in January 2021 to N410.23 in February 2021. The fund’s net asset value also increased by 4.17% from N122.95 million as of 29th January 2021 to N128.08 million at end of February 2021.


United Capital Euro Bond Fund – United Capital Asset Management Limited (Bond Funds)

The United Capital Nigerian Eurobond Fund is an open-ended mutual fund that invests in dollar-denominated euro bonds, floated by the Federal Government of Nigeria, Nigerian top-tier banks, and corporates.

Investors can start with a minimum of 10 units, with each unit costing $100 and multiples of 5 units can be purchased thereafter.

January 29, 2021

Fund Price – N46,347.64

February 26, 2021

Fund Price – N48,466.73

Return – 4.57%

Ranking – Second

Commentary: The euro bond fund owned by United Capital Asset Management Ltd recorded a unit price growth of 4.57% in February 2021. The net asset value however declined by 3.61% from N29.74 billion as of 29th January 2021, to N28.67 billion at the end of February 2021.


Stanbic IBTC Dollar Fund – Stanbic IBTC Asset Management Limited (Fixed Income Funds)

Stanbic IBTC Dollar Fund (SIDF) is an open-ended fund launched in January 2017. The fund invests a minimum of 70% of its portfolio in high-quality Eurobonds, a maximum of 25% in short-term USD deposits, and a maximum of 10% in USD equities.

The expense ratio of the fund is 1.5%. The minimum investment amount is $1,000 while additional investments is $500. All investments must be held for a minimum period of 180 days.

January 29, 2021

Fund Price – N485.29

February 26, 2021

Fund Price – N507.73

Return – 4.62%

Ranking – First

Commentary: This is a dollar fund by Stanbic IBTC Asset Management Limited, which led the list of best-performing mutual funds in the month, appreciating by 4.62% in February.

Also, the net asset value as of 26th February 2021, was N119.23 billion indicating a growth of 3.50% when compared to N115.20 billion recorded as of January 29 2021.


Bubbling under…..

The following are the other top 10 performing funds on our lists in ascending order:

Lotus Capital Fixed Income Fund – Lotus Capital Limited (Fixed Income Fund)

Return – 0.68%

Anchoria Equity Fund – Anchoria Asset Management Limited (Equity-Based Funds)

Return – 0.77%

SFS Fixed Income Fund – SFS Capital Nigeria Limited (Fixed Income Funds)

Return – 1.00%

Cordros Dollar Fund – Cordros Asset Management Limited (Fixed Income Funds)

Return – 1.51%

ARM Discovery Balanced Fund – Asset & Resources Management Company Limited (Mixed Funds)

Return – 1.58%