By Goddy Egene
The Nigerian mutual funds market has recorded a significant increase as more investors now show interest in the market given the numerous benefits in investing through the asset class. The number of registered mutual funds with the Securities and Exchange Commission (SEC) grew from 76 in 2019, with Net Asset Value (NAV) in excess of N600 billion to 102 mutual funds with NAV of over N1.43 trillion.
The Divisional Head, Listings Business, Nigerian Stock Exchange (NSE), Mr. Olumide Bolumole, disclosed this yesterday during the digital Closing Gong Ceremony to commemorate the election of Mrs. Tope Omojokun as the President, Fund Managers Association of Nigeria (FMAN).
According to him, 56 of the 102 mutual funds are listed on the NSE with NAV of over N1.24 trillion representing 88.3 per cent of total NAV.
“This confirms the NSE as the preferred listing destination for this asset class and we will continue to strategically position ourselves to support the growth of our fund managers and our stakeholders.
“On behalf of the National Council and Management of the NSE, I extend our warmest congratulations to Mrs. Omojokun on her election as President, FMAN. I must also commend FMAN for its continuous collaboration in ensuring increased efficiency and investor participation in the Nigerian mutual funds market.
Speaking, Omojokun expressed her gratitude to the NSE for the honour, stressing that FMAN was established to promote the operations of fund managers registered with the SEC and its objectives include self-regulation and supervision of its members; the enforcement of global best practices in its members’ operations, and most importantly, the education of the public on investments.
“Working with the NSE has brought about the trading of listed funds on the exchange and are working towards the display of mutual funds prices on the ticker tape of the NSE. Furthermore, we are collaborating with the X-Academy to train our members and the public on adopting best investment practices and we look forward to other avenues to work together for the development of the capital market,” she said.
Meanwhile, the equities market closed in the red as the NSE All-Share Index (ASI) fell by 0.59 per cent to close at 39,697.62 following losses by Nestle Nigeria Plc, Lafarge Africa Plc and Flour Mills of Nigeria Plc. Trading volume declined by 59.1 per cent to 222.6 million shares while value rose 185.5 per cent to N5.4 billion.