There are always two sides to a coin (unless the coin is loaded). In the stock market, analysts or financial journalists always talk about winners and losers when reporting on the stock market daily, weekly. Monthly or yearly performance. We have presented to you, the best performing mutual funds in 2015, it is therefore fair to also present to you, the worst performing mutual funds. It is no new news that 2015 was agonizing for most investors, especially equity investors following the many factors that worked against the market, from the melt-down in China, the lack of “traction” in the oil market to the unexpectedly huge devaluation of the local currency. The end result of those interplay was that major stock market benchmarks, the NSE Allshare Index witnessed its worst yearly finish since 2011. That benchmark performance translated into some abysmal performance by some mutual funds especially stock funds that saw increased volatility. Thanks to some bond funds, the pain felt by equity fund investors seemed to be placated by the gains from bond funds, howbeit for those who held diversified portfolios.
The effect of the increased market volatility in Q3 and Q4 2015, entailed that the majority of mutual funds ended the year in the red. The biggest category losers in 2015 were those affected most by key events of 2015. The slump in crude prices caused the energy sector stocks to run south while the currency devaluation put pressure on banks among other sectors. Mutual funds that were overweight on those sectors had to share the pain and loss. In like manner, commodity focused funds like the New Gold ETF were battered by a surging dollar and falling commodity prices. Having said all that, the question is, how bad was 2015 for mutual funds? Excluding the 5 money market funds, 30 mutual funds out of 54 funds ended the year in the red, that is 56%. Like we did with the report on top performing mutual funds, we present below the worst performing mutual funds as those that recorded double digit negative returns.
|Funds||2015 Performance (%)|
|Vetiva Banking ETF||-26.79|
|Zenith Equity Fund||-18.7|
|Vetiva Griffin 30 Etf||-18.46|
|Afrinvest Equity Fund||-15.55|
|Stanbic IBTC Nigerian Equity Fund||-15.24|
|Stanbic IBTC ETF 30 Fund||-12.92|
|Vetiva Consumer Goods ETF||-12.57|
|ARM Aggressive Growth Fund||-12.48|
|Nigeria Global Investment Fund||-11.21|
|Stanbic IBTC Ethical Fund||-10.59|
|Paramount Equity Fund||-10.17|
Past performance is not a guarantee of future performance and this analysis is based on information generated from different sources, the accuracy and veracity of which cannot be verified by the writer or Quantitative Financial Analytics Ltd. This does not constitute an investment advice and readers who use and rely on it for their investment do so totally on their own volition.