Fixed income and equity-based funds led the list of best performing mutual funds in the month of February 2022 as GDL Income funds, AXA Mansard Equity Income Fund, and Coronation Fixed Income Fund ranked top three mutual funds with highest returns in the review month.
The industry’s Net Asset Value rose by N47.52 billion in the month under review to stand at N1.37 trillion compared to N1.33 trillion recorded as of the end of the previous month. The increase in the Net Asset Value (NAV) is attributed to the N20.57 billion increase recorded in bonds/fixed income funds and the N19.19 billion increase in money market funds.
According to the data from the Securities and Exchange Commission (SEC), 63.6% of the listed 121 mutual funds recorded positive returns in the review month, 29.8% of the funds remained flat, while 6.61% of the listed funds printed losses. However, on the average, the market recorded a 1.1% positive ROI in the month under review.
Below is the list of the best performing mutual funds in February 2022, based on their returns and performance in terms of changes in net asset value, comparing value as of 25th February 2022 to that of 28th January 2022. The report also includes a profile of the funds as described on their websites.
Stanbic IBTC Ethical Fund – Stanbic IBTC Asset Mgt. Limited
The Stanbic IBTC Ethical Fund is an ethical fund that aims to achieve long term capital appreciation by investing a minimum of 70% of the portfolio in listed equities of socially responsible companies quoted on the Nigerian Stock Exchange (NSE) and a maximum of 30% in high quality fixed income securities.
The Stanbic IBTC Ethical Fund is an open-ended fund that mitigate investment risks by investing across a diverse range of assets thus avoiding concentration risk.
28th January 2022
Fund Price – N1.30
25th February 2022
Fund Price – N1.35
Return – 3.8%
Ranking – Fifth
The Stanbic IBTC Ethical Fund recorded a 4.6% increase in its net asset value, moving marginally from N1.57 billion recorded as of 28th January 2022 to N1.64 billion as of 25th February 2022.
Anchoria Equity Fund – Anchoria Asset Management Limited
The Anchoria Equity Fund is an open-ended fund registered to be a collective investment scheme, which seeks to invest primarily in quoted equities (minimum of 75%) and fixed income securities (maximum of 25%). The Fund does not invest in unquoted equity securities.
According to the information on the company’s website, the Anchoria Equity Funds seeks to deliver real returns and achieve long term capital appreciation of its assets by investing in a diversified pool of grade equities and fixed income securities.
28th January 2022
Fund Price – N142.67
25th February 2022
Fund Price – N148.26
Return – 3.9%
Ranking – Fourth
The net asset value of Anchoria Equity Fund increased marginally by 4.3% in February to N452.27 million compared to N433.67 million recorded as of 28th January 2022, to stand in fourth position.
Coronation Fixed Income Fund – Coronation Asset Management
The Coronation Fixed Income Fund is an open-ended Fund that seeks to achieve an efficient balance between capital appreciation and income for investors. The fund achieves its investment objectives by investing in medium to long-term FGN, Subnational and Corporate Bonds and other eligible fixed income securities.
The Coronation Fixed Income Fund adopts and maintains an investment strategy that is designed to ensure a steady return on capital and assured liquidity.
28th January 2022
Fund Price – N1.43
25th February 2022
Fund Price – N1.50
Return – 4.8%
Ranking – Third
The fund’s net asset value closed at N678.7 million as of 25th February 2022 from N1.08 billion recorded as of the previous month. This represents 37.4% decline in the net asset value.
AXA Mansard Equity Income Fund – AXA Mansard Investments Limited
The AXA Mansard Equity Income Fund is aimed at investors with high-risk appetite seeking income and strong potential for capital growth through an array of stocks. It is also targeted at investors who wish to reduce concentration risk and benefit from diversification and professional management.
According to the information on the company’s website, the fund is best suited to long-term investors with a relatively high appetite for risk assets.
28th January 2022
Fund Price – N136.74
25th February 2022
Fund Price – N143.46
Return – 4.9%
Ranking – Second
The price of AXA Mansard Equity Income Fund gained 4.9% in the review period, to stand as the second-best performing mutual fund in February 2022. On the other hand, the net asset value dropped marginally by 1.7% to close at N246.45 million from N250.83 recorded as of the end of January 2022.
GDL Income Fund-Growth & Development Asset Management Limited
The GDL Income Fund is an Income-Based mutual fund, which is open to strategic but risk averse investors- High Net worth Individuals, Pension Fund Administrators, Insurance Companies, Mortgage and Microfinance Banks, Endowment Funds, Family & Trust Funds, Educational centers, Charity Organizations, Religious Houses, Company Co-operatives & Staff Schemes and Federal, State & Local Governments including their investment companies.
The GDL Income Fund is capital preservative and can be used as liquid security or collateral for borrowings. Returns on investment are not subject to withholding tax. Minimum investment is 50,000 units.
28th January 2022
Fund Price – N0.76
25th February 2022
Fund Price – N0.90
Return – 18.3%
Ranking – First
The GDL Income Funds is the best performing fund in February 2022 managed by Growth & Development Asset Management Limited, having gained 18.3% in price. The fund recorded a marginal increase in its investors’ subscription as the net asset value rose N20.2 million as of the previous month to N23.9 million in the month under review.
What you should know about mutual fund
- Mutual Funds are investment entities that pool funds from a number of investors and invest those funds in diversified portfolio securities such as equities, stocks, bonds, money market instruments and similar assets.
- They allow you pool your money with other investors to “mutually” buy stocks, bonds, and other investments.
- Mutual Funds are operated by professional money managers who decide which securities to buy (stocks, bonds, etc.) and when to sell them.
- You get exposure to all the investments in the fund and any income they generate.
- It also offers a wide variety of investment strategies and styles.
