Mutual Funds Overview.pdf

FMAN was established to promote the operations of SEC-registered Fund Managers in Nigeria. Its objectives include self-regulation, ensuring global best practices, and educating the public on investment. The mission is to facilitate public policy advocacy, education, regulation compliance, market promotion, and international best practices.

Key Statistics

Total Net Asset Value (NAV) of the industry has grown by 1,362% from ₦98.90bn in 2009 to ₦1.37trn in 2022.
Total number of registered funds has grown by 239% from 41 funds to 143 funds as of October 2022.
FMAN has 119 members with a total Asset Under Management (AUM) of about ₦6.00trn.
37 members manage 139 registered Collective Investment Schemes (CIS) with a total NAV of ₦1.45trn as of August 2022.

Mutual Funds

Defined as a scheme where members of the public invest money or assets in a portfolio.
Managed professionally by Fund Managers and regulated by the SEC.
Features include liquidity, low cost, higher returns, professional management, diversification, convenience, flexibility, and transparency.
Benefits include capital preservation, stable income, and long-term capital appreciation.

Mutual Fund Categories

Money Market Funds (MMF): seek capital preservation, steady income, and maintain market liquidity.
Fixed Income Funds (FIF): seek to generate stable income by investing in debt securities.
Balanced/Mixed Funds (BF): seek long-term capital appreciation while mitigating risk.
Equity Funds: seek long-term capital growth.
Dollar Funds: seek to provide income and total returns in US Dollar-denominated assets.
Shari’ah Compliant Funds (SCF): invest in Shari’ah-compliant assets and contracts.

Money Market Mutual Funds

Suitable for short-term focused investors seeking low-risk investments.
Features include opportunity to grow capital, low risk, weighted average maturity of 90 days, liquidity, and competitive returns.
* Key facts include market share of 41% as of September 2022, surge in demand, and asset allocation restrictions.