The Net Asset Value (NAV) of 56 mutual funds posted on the Nigerian Stock Exchange (NSE) rose from N1.24 trillion at the end of 2020.
Techeconomy.ng understands that the figure represents 88.3 percent of the total NAV in the Nigerian capital market.
This was disclosed at the exchange’s digital closing gong ceremony by the divisional Head, Listings Business, NSE, Olumide Bolumole
The ceremony was held to commemorate the election of Mrs. Tope Omojokun as the President, Fund Managers Association of Nigeria (FMAN).
Bolumole explained that the number of registered mutual funds with the Securities and Exchange Commission (SEC) also grew from 76 in 2019 with NAV of N600 billion to 102 with NAV of over N1.43 trillion in 2020.
According to him, the increase in the number of listed funds and the value confirms the NSE as the preferred listing destination for the asset class.
He added that the NSE would continue to strategically position itself to support the growth of the fund managers and the stakeholders.
Recall that the exchange had admitted two mutual funds ₦500,000,000 ARM fixed-income fund and ($1,000,000) ARM Eurobond fund on its memorandum-listing platform.
The exchange has also achieved all-around increased efficiency in terms of competitive pricing structures, improved turnaround time and enhanced customer experience. As such, market participants continue to look forward to more listings in the coming months.
Speaking at the event, the Divisional Head, Trading Business, NSE, Jude Chiemeka, said: “ETFs are one of the fastest-growing capital-market investment vehicles in advanced economies, offering transparency, liquidity, diversification, and lower costs.
In a recent interview, the Chief Executive, Stanbic IBTC Asset Management Limited, Oladele Sotubo, expressed his views on investments and the impact of policies on the asset management sector of the fund market and how its opportunities can be harnessed.
Sotubo emphasised the need to urgently diversify the economy to create more broad-based investment opportunities. That way, corporate entities will be able to access the capital market more efficiently.
He said: “When an economy is diversified, the impact will be evident on the number of financial instruments available for investment and also increase the number of companies participating in our capital market. Ultimately, all these will positively affect the tax revenue and by extension, infrastructural development of the nation.”