Nigerian Mutual Funds lose N6 Billion for the week ending 01/16/15
The volatility that has characterized the Nigerian stock market since the beginning of the end of 2014 has resulted in the loss of market value and market capitalization. The truth about this increased volatility is that it has not spared anyone. It has affected the currency market, the retail industry as well as the manufacturing industry. The Nigerian Mutual funds industry has not gone unscented either. This is evidenced by looking at the latest NAV summary released by the Security and Exchange Commission on the 16th of January 2015 which shows the total Net Asset Value of Nigerian Mutual Funds at N177.031 billion down from N177.176 billion release a week earlier on 9th January 2015. Within the period under review, investors injected an estimated sum of N7.2 billion into various mutual funds while withdrawing an estimated total of N1.3 billion leaving investors with a 3.32% decrease in Net Asset Value.
A flow analysis indicates that Nigerian mutual funds investors are becoming more risk averse while the industry is witnessing increased flight to quality as much of the injections went to money market and real estate funds which recorded a net inflow of N2.4 Billion and N1.4 Billion respectively. Exchange traded funds, ETFs witnessed an estimated inflow of N1.6 Billion thanks to the two new ETFs, Stanbic IBTC 30 ETF Fund and Lotus Halal Equity ETF
Of the N6 Billion loss, Equity funds generated a total loss of N 2.5 Billion while real estate funds accounted for a loss of N2.8 Billion. On a positive note, umbrella funds and Bond funds recorded profits of N7 and N29 Million respectively.
For a detailed analysis, please see attached spreadsheet on https://www.dropbox.com/home/Attachments