Collective Investment Schemes net asset value increases to N211.3bn

The net asset value (NAV) of Money Market Funds represents about 44.4 percent of the value of Collective Investment Schemes (CIS) under the regulation of the Securities and Exchange Commission (SEC).

The NAV of Collective Investment Scheme –a type of investment scheme that involves collecting money from different investors and then combining all the money collected to fund the investment –rose to N211.305billion from N209.886billion.

As at the week ended September 11, 2015, the asset value of money market funds rose to N93.796billion against the preceding week at N92.539billion.

A money market fund is an open-ended mutual fund that invests in short-term debt securities such as Treasury Bills and commercial paper. Money market funds are widely (though not necessarily accurately) regarded as being as safe as bank deposits yet providing a higher yield.

Meanwhile, the NAV of Equity-Based Funds –a mutual fund designed for investors with interest in the equities market –declined from N29.701billion to N29.472billion.

Net Asset Value of Fixed Income Funds also declined from N16.555billion to N16.480billion. Fixed Income Funds are usually open-ended mutual funds that invest in a broad range of long tenured debt securities issued by the Federal Government of Nigeria, state governments and highly rated corporate institutions.

Likewise, the NAV of Real Estate Funds declined from N47.489billion to N47.462billion.  The asset value of Balanced Funds (geared toward investors who are looking for a mixture of safety, income and modest capital appreciation) increased from N10.956billion to N11.408billion.

In addition, the asset value of Islamic/Ethical Funds (which is targeted at investors that are attracted by the appeal of Islamic principles as well as the performance of Islamic investments) decreased from N5.016billion to N5.009billion; while the asset value of Umbrella Fund increased from N3.637billion to N3.664billion.

Exchange Traded Funds (ETFs) – a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund –recorded value increase from N3.991billion to N4.010billion.