24-04-2015 by 
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Weekly Flow

According to data released by the security and Exchange Commission for the week ended April 17th, mutual fund assets increased to N192.58 billion from N191.6 billion the previous week  representing a 0.5% increase or N968 million.  Within the same period under review, mutual funds recorded an estimated N93.3 million in profits representing an average return of 0.05%. Investors injected an estimated sum of N1.28 billion into various mutual funds only to withdraw N410 million leaving a net inflow of N874 million. This brings the month to date flow numbers to N4.08 billion  inflows, N782 million outflow and N3.2 billion in net flow. It is worthy of note that this increase marks the 8th straight week that mutual fund assets have aimed for the sky.

Year to date

The flow performance of mutual funds is even more encouraging when viewed on a year to date basis.  The Net Asset of mutual funds, which stood at  N175.8 billion as at December 31st 2014, now stands at N192.58 billion. This shows a whopping increase of N16.725 billion. The increase is mostly accounted for by YTD inflow of N26.9 billion and outflow of N10.98 billion giving a net flow of N15.9 billion. This means that part of the increase in asset, an estimated N818 million represents YTD profits made by the funds.  Though the profit is not as much as investors would expect, it points to the fact that most of the funds have erased the losses they made during the first two months of the year following the shock from the world oil market, the devaluation of the Naira, political instability from the elections and national security challenges from terrorists.  Our analysis reveals that of the 56 mutual funds in the Nigerian space, only 9 are yet to return to profit. The year is still young as we just stepped into the second quarter but with increased macroeconomic prudence and increasing investor appetite for mutual funds, the asset seem to have taken a leap for the better. 

Fund Ranking By Asset

The ranking of the funds by asset still remains the same as the big four continue to  hold their own, however, UPDC REITS'  share of  mutual funds assets decreased from 16.1%, the previous week   to 15.9%, while Stanbic IBTC Money Market Fund inched higher from 18.9% to 19.2%. Both FBN Money Market and Union Homes REITs retain their 3rd and 4th positions with 12.7% and 7.2% respectively although they had lost some percentage asset ownership of 0.2% and 0.1% respectively. 

Asset Under Management Ranking

AUM by Fund Manager ranking was not altered either as Stanbic IBTC Asset Managers remain the largest fund managers by asset size with N57.67 billion while FSDH Asset Management retains the second position with N34.5 billion with FBN Capital Asset Management coming third on N33.5 billion as Asset and Resources Management (ARM) takes the forth position with N15.15 billion.