Mutual funds rebound, assets hit $3.64bn – Report

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After suffering decline in 2021, Nigeria’s assets under management in mutual funds rose to $3.64tn in the first five months of 2022.

Coronation Assets Management disclosed this in a report on mutual funds industry.

The report stated that, “This year, and after a 10.6 per cent decline in total assets under management during 2021, the mutual fund industry is growing again, with total AUM up 8.7 per cent in the first five months of the year to N1.52tn ($3.64bn). The compound annual growth rate for the industry between 2015 and 2021 was 33 per cent, or 14 per cent per annum in inflation-adjusted terms.”

One year after the publication of its report ‘Comparing mutual funds – Apples & Oranges’, Coronation Asset Management said it returned to the subject of comparing the performance of Nigeria’s mutual funds with its latest report titled, ‘Comparing mutual funds II – Apples & Oranges, and a Hand Grenade’.

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The report is a key investigation into the rapidly-growing N1.52tn mutual fund industry in Nigeria, it said.

The Managing Director, Coronation Asset Management, Aigbovbioise Aig-Imoukhuede, said, “We are convinced that Nigerian savers are making the long-term transition from building savings with banks to a culture of saving with mutual funds.”

The Head of Research at Coronation Asset Management, Guy Czartoryski, said, “We find that the amortised accounting method has a fundamental flaw when it comes to dealing with interest rate fluctuations; so much so that we think it could lead to systemic risk in future. Hence the title of our report this year.”

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