While most of the major stock markets struggled globally to finish 2015 in the green amid concerns stemming from China-led global growth worries and the slump in oil prices, some mutual funds in Nigeria succeeded in coming out with flying colors. Their success underscores the essence of diversification and good asset allocation strategy among other virtues of a good fund manager. The Nigeria Allshare Index posted their worst yearly performances since 2011 with a -17.36% return.
Mutual funds witnessed huge cash inflows in 2015 especially in the money market and bond fund category as disgruntled investors went in search of yield. Mutual funds struggled to find their feet from the very beginning of the year 2015, with17 funds finishing in the green in the first quarter of the year. At the end of the second quarter, their performance improved remarkably, when 41 of the funds succeeded in registering gains. However, by third quarter, only 28 of the funds could boast of any gains as the effects of oil glut and Naira devaluation began to take a toll on the market. As investors gathered to watch the ball drop on the eve of the new year, only 21 mutual funds rewarded their shareholders with green performance. While the overall performance rates differ by fund and fund category, 7 funds were able to record positive returns in the double digit and those are our 7 top performing mutual funds for 2015.
|Mutual Funds||2015 Performance|
|Stanbic IBTC Bond Fund||15.49%|
|Stanbic IBTC Absolute Fund||13.19%|
|UBA Bond Fund||12.08%|
|Nigerian International Debt Fund||11.82%|
|Stanbic IBTC Guarantee Fund||11.81%|
|FBN Fixed Income Fund||11.59%|
|Coral Income Fund||10.76%|
Please note that past performance does not guarantee future returns