A mutual fund is a professionally managed investment vehicle that pools funds from numerous investors to purchase securities such as stocks, bonds, money market instruments and similar assets.
In others words, mutual fund accumulates fund from investors that need professional management of their fund for maximum returns.
Mutual fund offer opportunities for risk diversification as investors are exposed to more than one asset classes, thus balancing risks against returns across instruments.
There are currently 24 managers registered with the Securities and Exchange Commission (SEC) managing 84 different funds. However just five control more than 80 percent of total mutual funds worth N746 billion as at the last week of May.
Here are the giant funds:
- Stanbic IBTC Asset Management Limited (N321 billion)
Stanbic IBTC Asset Management Limited, a subsidiary of Stanbic IBTC Holdings, is the largest fund manager in Nigeria, with 43 percent market share amounting to N321 billion.
The manager holds eleven (11) funds in seven different asset classes. As a matter of fact, their largest holding is in the money market.
Funds in their custody include: Stanbic IBTC Nigerian Money Market Fund (N262 billion) – the largest fund in the entire capital market, Stanbic IBTC Nigerian Equity Fund (N5 billion) among others.
- FBN Capital Asset Management (N173 billion)
FBN Capital Asset Management is owned by parent company, First Bank of Nigeria Holdings.
The fund manager boasts of a 23 percent market share of total Fund under Management in Nigeria. Its holdings is worth N173 billion.
FBN Capital oversees six (6) different funds across different asset classes and its money market fund which worth N163 billion is the second single largest fund in Nigeria. Hence, the exposure of FBN to the money market is 94 percent.
- Asset and Resource Management Limited (N65 billion)
The Lagos-based Asset and Resource Management Limited was established in 1994 and provides wealth creation opportunities through a unique blend of traditional asset management and alternative investment services.
The manager has 9 percent share of total fund in the market, and controls four (4) funds in seven (7) different asset classes that include Equities, Money market, Real estate and Ethical funds among others.
ARM Money Market Fund accounts for 88 percent of the manager’s holding and is the third single largest fund in the market.
- FSDH Asset Management Ltd (N39 billion)
Unlike other fund managers, First Securities Discount House Merchant Bank’s Asset management arm has its highest exposure in real estate funds.
The managers total funded under management amounts to N39 billion, of which N33 billion or 85 percent is directed to real estate under the UPDC Real Estate Investment Fund vehicle.
The UPDC Real Estate Investment Fund vehicle at 73 percent is the biggest real estate fund.
FSDH Asset Management Ltd has five (5) percent market share in the entire mutual fund market.
- AXA Mansard Investments Limited (N26 billion)
AXA Mansard Investments Limited is an asset management company within the AXA Mansard Group. The manager has N26 billion as total und under management- that is, 3 percent of the entire market.
N25 billion of its total fund is committed to the money market where it has the AXA Mansard Money Market Fund, which has a weight of 4.56 percent of entire money market.
