• Comparing Mutual Funds - Apples and Oranges

     

    This report addresses developments in Nigeria’s fast-growing Mutual Fund industry where the total assets under management grew by 50% to Naira 1.57 trillion last year.



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  • Shifting the Appetite of Nigerian Investors: From Savings to Mutual Funds

     

    A growing industry in need of risk management and performance data


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  • Navigating the Capital Market: The Investors Dilemma

     

    A report on Nigerian Investments



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  • Asset management

    We are a trusted fiduciary that is focused on delivering investment solutions for our diverse range of clients based on our broad and accurate insight of financial markets.

Comparing Mutual Funds - Apples and Oranges

By Guy Czartoryski

Coronation Asset Management today releases its report on ‘Comparing Mutual Funds – Apples and Oranges’. This report addresses developments in Nigeria’s fast-growing Mutual Fund industry where the total assets under management grew by 50% to Naira 1.57 trillion last year.

Coronation Asset Management examines what happens when an investor seeks information on Mutual Funds and takes the example of Naira-denominated Fixed Income funds. The results are surprising. The data reported by these funds is very diverse, with different accounting methods used to arrive at very different Unit Price performance data. This means that investors lack the kind of easy comparisons between funds that exist in developed markets, comparisons that can be found on the Morningstar and Financial Times websites.

In our view, Nigeria’s diverse measures stand in the way of the development of the industry. Although it is growing rapidly, we believe that Nigeria’s Mutual Fund industry requires several more years of growth to reach the Naira 12.3 trillion total size of Nigeria’s Pension Funds. Harmonization of its reporting may be a difficult task, making the effort now will lead to Mutual Funds becoming a significant force in Nigeria’s financial infrastructure.

To get the full report, please click the link below.


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