Now Reading:

NCM 2020: Bond Funds Grew By 443.80% YoY in 2020

Mutual Funds	804 VIEWS
Mutual Funds
804 VIEWS

Friday, February 26, 2021 /05:00 AM / By Proshare Research/ Header Image Credit: EcoGraphics

Mutual Funds

A large portion of mutual funds recorded a good performance in the year 2020, with government-backed instruments doing better than their counterparts. The Bonds Funds had the best performance, it grew by +443.80% Year-on-Year (Y-o-Y), the second-best performer was the Fixed Income Bonds which grew by +204.44% Y-o-Y.

Real Estate Funds had the lowest performance, its Net Asset Value (NAV) declined by -8.41% Y-o-Y

For Equity-based mutual funds, its NAV appreciated by +32.33% which is lower than the NSE ASI which recorded a Y-o-Y increase of +50.03%.

Data released by The Securities and Exchange Commission (SEC) showed that AXA Mansard Equity Income Fund recorded the highest Y-o-Y percentage change of +109.56% with a NAV of N297.49m as of 24th Dec 2020. While Stanbic IBTC Aggressive Fund (Sub Fund) had the lowest percentage change of -5.46% with a NAV of N309.30m (see table below).

Table 67: Equity-Based Mutual Funds Returns 2020

The money market funds had a marginal Y-o-Y return of +0.14%, with FSDH Treasury Bill Fund recording the highest return of +93.96% and a NAV of N8.82bn as of 24 Dec 2020. United Capital Money Market Fund had the highest percentage decline of -33.42% Y-o-Y with a NAV of N11.04bn as of 24 Dec 2020 (see table below).

Table 68: Money Market Funds Returns 2020

Fixed income funds grew significantly by +204.44% with a total NAV of N422.66bn as of 24 Dec 2020. Zenith Income Fund recorded the highest percentage increase in this segment with a growth of over +1000% with a NAV of N26.23bn as of 24 December 2020, while ACAP Income Fund recorded the highest percentage decline of -24% with a NAV of N178.26m as of 24 December 2020 (see table below).

Table 69: Fixed Income Funds Returns 2020

The Bonds Funds segment recorded the highest percentage change in the total pool of mutual funds in 2020, it grew by +443.8% Y-o-Y with a NAV of N221.20bn as of 24 December 2020. Stanbic IBTC Bond Fund had the highest percentage increase of +1174.78% with a NAV of N155.46bn which accounts for 70% of the total Market Cap of the Bond Funds segment. PACAM Eurobond Fund had the lowest percentage increase of +18.47% with a NAV of N562m as of 24 December 2020 (see table below).

Table 70: Bond Funds Returns 2020

For the Mixed Funds, the total NAV for this segment grew Y-o-Y by +23.51% from N23.85bn recorded in Dec 2019 to N29.46bn as of 24 Dec 2020. Coronation Balanced Fund had the highest percentage growth of +472.51% with a NAV of N563.29m, while Cordros Milestone Fund had the highest percentage decline of -10.95% with NAV of N409.69m as of 24 December 2020 (see table below).

Table 71: Mixed Funds Returns 2020

All fund managers in the Ethical Funds segment of Mutual Fund all recorded an increase in NAV. The total NAV for the Ethical Funds increased Y-o-Y by +158.12% with NAV at N11.58bn as of 24 December 2020. ARM Ethical Fund had the highest percentage growth of +35.53% growth in NAV to N361.8m while Zenith Ethical Fund had the lowest percentage growth of +18.85% in growth of NAV to N618.39m as of 24 December 2020 (see table below).

Table 72: Ethical Funds Returns 2020

The Real Estate Funds recorded the lowest performance in the pool of Mutual Funds, its NAV declined by -8.41%. Union Homes REITs had the highest percentage growth in its NAV, with a marginal growth of +0.43% while UPDC Real Estate Investment Fund had the highest percentage decline of -11.26%. The UPDC REIF controls over 70% of the funds in this segment (see table below).

Table 73: Real Estate Funds Returns 2020