1. Nigerian Capital Market at Crossroads; Working Towards a New Normal

Mutual Funds 

A large portion of mutual funds recorded a good performance in the year 2022, 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 +2.23% which is lower than the NGX ASI which recorded a Y-o-Y increase of +19.98%. Data released by The Securities and Exchange Commission (SEC) showed that Afrinvest Equity Fund recorded the highest Y-o-Y percentage change of +17.32% with a NAV of N403.66m as of 30 Dec 2022. While ARM Aggressive Growth Fund had the lowest percentage change of -14.28% with a NAV of N2.33bn (see table 32 below).

Table 32: 

The money market funds had a Y-o-Y return of +9.30%, with Core Investment Money Market Fund recording the highest return of +423.80% and a NAV of N36.92m as of 30 Dec 2022. GDL Money Market Fund had the highest percentage decline of -31.50% Y-o-Y with a NAV of N562.08m as of 30 Dec 2022 (see table 33 below).

Table 33: 

Fixed income funds recorded the lowest performance in the pool of Mutual funds as it declined by -10.46% with a total NAV of N337.96bn as of 30 Dec 2022. FBN Bond Fund (FBN Fixed Income Fund) recorded the highest percentage increase in this segment with a growth of +66.72% with a NAV of N62.37bn as of 30 December 2022, while Legacy Debt Income Fund recorded the highest percentage decline of -74.79% with a NAV of N1.67bn as of 30 December 2022 (see table 34 below).

Table 34: 

The Dollar fund had a Y-o-Y return of +21.807%, with Vantage Dollar Fund recording the highest return of +713.98% and a NAV of N15.44bn as of 30 Dec 2022. AVA GAM Fixed Income Dollar Fund had the highest percentage decline of -29.63% Y-o-Y with a NAV of N357.98m as of 30 Dec 2022 (see table 35 below).

Table 35: 

The Ethical fund had a Y-o-Y return of +16.46%, with a total NAV of N2.95bn. ARM Ethical Fund recorded the highest return of +37.98% and a NAV of N564.55m as of 30 Dec 2022  (see table 36 below).

Table 36: 

The Real Estate Funds recorded a decline in NAV by -9.05%. Nigeria Real Estate Investment Trust had the highest percentage growth in its NAV, with a marginal growth of +1.51% while UPDC Real Estate Investment Fund had the highest percentage decline of -15.01%. The UPDC REIF controls over 50% of the funds in this segment (see table 37 below).

Table 37: