The net asset value (NAV) of Nigeria’s Collective Investment Schemes (CIS) increased by N7.3billion in the week ended March 16, 2018 to N529.1billion against N521.88billion in the preceding week to March 9, data at the Securities and Exchange Commission (SEC) showed.
There are currently about 84 collective investment schemes (Mutual Funds and Exchange Traded Fund) that currently under the regulation of the SEC.
The asset value of Mutual Funds increased to N521.67billion from N514.31billion recorded in the preceding week to March 9.
Meanwhile, the Exchange Traded Funds net asset value at N7.43billion in the review week shows a decline by N14billion, from the preceding week high of N7.579billion.
The Investments and Securities Act (ISA) defines Collective Investment Scheme as “a scheme in whatever form, including an open-ended investment company, in pursuance of which members of the public are invited or permitted to invest money or other assets in a portfolio.
Two or more investors contribute money or other assets to and hold a participatory interest; the investors share the risk and benefit of investment in proportion to their participatory interest in a portfolio of a scheme or on any other basis determined in the deed, but not a collective investment scheme authorised by any other Act.
Interestingly, among the Mutual Funds segment of the CIS, the Money Market Fund assets account for largest chunk of the record value. In the review period, Money Market Fund assets value increased to N382.77billion as against N375.02billion in the preceding week.
The asset value of Equity-based Funds decreased by about N406million, from a high of N15.788billion recorded the preceding week to N15.382billion last week. The Bond Fund asset value increased from N9.64billion to N9.78billion. The net asset value of Fixed Income Fund at N34.14billion implies an increase of about N570million from N33.57billion recorded in the preceding week to March 9.
The net asset value of SEC regulated Real Estate Fund decreased slightly by N1, to N45.546billion from N45.547billion in the preceding weekend.
Likewise the asset value of the regulated Mixed Funds decreased by N615million to close last week at N28.254billion, from N28.869billion recorded in the preceding weekend. Ethical Funds’ recorded net asset value decreased to N5.788billion from N5.859billion as at March 9, which implies value loss of N71million.
Iheanyi Nwachukwu
