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

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

Mutual Funds

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

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

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

Data released by TheSecurities and Exchange Commission (SEC) showed that AXA Mansard Equity IncomeFund 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-BasedMutual Funds Returns 2020

The money market funds hada marginal Y-o-Y return of +0.14%, with FSDHTreasury 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 hadthe highest percentage decline of -33.42% Y-o-Ywith a NAV of N11.04bn as of 24 Dec 2020 (see tablebelow).

Table 68: MoneyMarket Funds Returns 2020

Fixed income funds grewsignificantly by +204.44% with a total NAVof N422.66bn as of 24 Dec 2020. Zenith Income Fund recorded the highestpercentage increase in this segment with a growth of over +1000% with a NAV ofN26.23bn as of 24 December 2020, while ACAP Income Fund recorded the highestpercentage decline of -24% with a NAV of N178.26m as of 24 December 2020 (see table below).

Table 69: FixedIncome Funds Returns 2020

The Bonds Funds segmentrecorded the highest percentage change in the total pool of mutual funds in2020, it grew by +443.8% Y-o-Y with a NAV ofN221.20bn as of 24 December 2020. Stanbic IBTC Bond Fund had the highestpercentage increase of +1174.78% with a NAVof N155.46bn which accounts for 70% of the total Market Cap of the Bond Fundssegment. 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: BondFunds Returns 2020

For the Mixed Funds, thetotal 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. CoronationBalanced Fund had the highest percentage growth of +472.51%with a NAV of N563.29m, while Cordros Milestone Fund had the highest percentagedecline of -10.95% with NAV of N409.69m as of 24December 2020 (see table below).

Table 71: MixedFunds Returns 2020

All fund managers in theEthical Funds segment of Mutual Fund all recorded an increase in NAV. The totalNAV 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 highestpercentage growth of +35.53% growth in NAVto N361.8m while Zenith Ethical Fund had the lowest percentage growth of +18.85% in growth of NAV to N618.39m as of 24December 2020 (see table below).

Table 72: EthicalFunds Returns 2020

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

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