After suffering decline in 2021, Nigeria’s assets under management in mutual funds rose to $3.64tn in the first five months of 2022.
Coronation Assets Management disclosed this in a report on mutual funds industry.
The report stated that, “This year, and after a 10.6 per cent decline in total assets under management during 2021; the mutual fund industry is growing again, with total AUM up 8.7% in the first five months of the year to N1.52tn. The compound annual growth rate for the industry between 2015 and 2021 was 33% or 14% per annum in inflation-adjusted terms.”
One year after the publication of its report ‘Comparing mutual funds – Apples & Oranges’, Coronation Asset Management said it returned to the subject of comparing the performance of Nigeria’s mutual funds with its latest report titled, ‘Comparing mutual funds II – Apples & Oranges, and a Hand Grenage”.
The Managing Director, Coronation Asset Management, Aigbovbioise Aig-Imoukhuede, said, “We are convinced that Nigerian savers are making the long-term transition from building savings with banks to a culture of saving with mutual funds.”
The Head of Research at Coronation Asset Management, Guy Czartoryski, said, “We find that the amortised accounting method has a fundamental flaw when it comes to dealing with interest rate fluctuations; so much so that we think it could lead to systemic risk in future. Hence the title of our report this year.”