Mutual funds in Nigeria grew by 50% to N1.57trn in 2020 —Report

Coronation Asset Management Limited has announced a 50 per cent rapid growth of the Mutual Fund industry in Nigeria; bringing its total assets to N1.57 trillion in 2020. 

The asset management company in a virtual presentation gave an outlook report of mutual fund in Nigeria with theme; Comparing Mutual Fund- Apples and Orange; why harmonising reporting is the next step forward. 

In his welcome address, Managing Director, Coronation Asset Management Mutual Funds, Aigbovbioise Aig-Imoukhuede affirmed that there is financial growth in the Mutual Funds Industry. 

Declaring that the industry grew 50 per cent, despite COVID-19, AigImoukhuede insisted that Nigeria needs a standard form of reporting. In the company’s report, the Head, Coronation Research Team, Mr Guy Czartoryski, explained the outlook of what happens when an investor seeks comparative information on Mutual Funds and takes the example of naira-denominated fixed income funds. 

He, however, revealed that the results of the report are surprising, adding that the data reported by these funds is very diverse, using different accounting methods 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. 

According to Czartoryski “In our view, Nigeria’s diverse measures stand in the way of the development of the industry, adding that although it is growing rapidly, we believe that Nigeria’s Mutual Fund industry requires several more years of growth to reach the N12.3 trillion total size of Nigeria’s Pension Funds. 

“If Nigerian funds want to play in the international league, they need to adopt Global Investment Performance Standards (GIPS). Very few Nigerian fund managers apply GIPS at the moment. And Mark-to-Market Accounting is one of the cornerstones of GIPS. “Global investors have access to data on thousands of fund across the world and, thanks to adoption of GIPS, the data is comparable. And it is free. Anyone can use the Morningstar and Financial Times websites to compare thousands of funds. 

 

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