The mutual fund industry emerged Nigeria’s fast-growing industry in 2020 as the total assets under management increased by 50 per cent. Coronation Asset Management stated this in its report on “Comparing Mutual Funds – Apples and Oranges.”
The new report addresses developments in Nigeria’s fast-growing mutual fund industry where the total assets under management grew to N1.57 trillion last year.
In the report released yesterday, the Coronation research team, headed by Guy Czartoryski, examined what happens when an investor seeks comparative information on mutual funds, and takes the example of naira-denominated fixed income funds. According to the report, “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 N12.3 trillion total size of Nigeria’s pension funds,” says Guy Czartoryski, Head of Coronation Research.