AUGUST 10th PRICE LIST FOR MUTUAL FUNDS, REITS and ETFS

Coronation Asset Management Explains Increased Patronage of Mutual Funds

The increased patronage of  mutual funds  in Nigeria can partly be attributed to the  fact that active portfolio management by experienced professionals offer investors better prospects on their investments especially in periods of market volatility and economic downturns as is being experienced in Nigeria, making mutual funds an optimal choice.

Senior Fund Manager and Head, Coronation Asset Management, Mr. Emeka Okolo stated this while speaking on the increased patronage of mutual funds in the country.

Total assets under management (AUM) of mutual funds in Nigeria hit N300 billion for the first time ever last year, while N42 billion inflows in first quarter (Q1) of 2017 as against the N49 billion inflow recorded in the entire 2016.

 According to Okolo, apart from the improving state of the economy, stock market and interest rate fluctuations as well as much improved mutual funds offerings, investors are patronising mutual funds because of benefits they get from expertise of fund managers.

Okolo said Coronation Asset Management recently floated three mutual funds- Coronation Fixed Income Fund, Coronation Money Market, and Coronation Balanced Fund- so as the offer investors more opportunities to diversify and enjoy better returns on  their investments.

He said: “No one can doubt the capacity and expertise of Coronation Asset Management to deliver competitive returns to investors in the Coronation Mutual Funds. The level of professionalism and quality of investments will be difficult to match by other mutual fund managers in Nigeria and the West African sub-region. This, coupled with the proposed investment mix and the fund structures, distinguish these mutual funds. The N1.5 billion Money Market Fund, N400 million Fixed Income  Fund and the N200 million Balanced Fund, were all offered at par of N1 per unit.”

Also speaking, the Chairman of the Coronation Merchant Bank, Tunde Folawiyo, said that the funds offer all strata of investors, individual and corporate, an opportunity to diversify their investment portfolios backed by the strength of the Coronation brand and managed by a team of experienced professionals at Coronation Asset Management.

According to the Folawiyo,  the Money Market Fund will exclusively invest in short-dated money market instruments, offering capital preservation and liquidity to investors.

“The Fixed Income Fund will invest in Federal Government of Nigeria (FGN) and investment grade corporate bonds while the Balanced Fund will invest in a diversified portfolio of carefully chosen equity securities with strong fundamentals and prospects of delivering long term positive investment returns, while tactically investing in fixed income securities to actively manage short term volatility in its equities exposure,” he said.