There continues to be growing interest in the mutual funds asset class as proven by the increasing number of registered entities with the Securities and Exchange Commission (SEC) since 2019.
This was highlighted at the digital Closing Gong Ceremony of the Nigerian Stock Exchange’s (NSE) to commemorate the election of Tope Omojokun as the President, Fund Managers Association of Nigeria (FMAN) on Tuesday, March 2, 2021.
Speaking at the ceremony, the Divisional Head, Listings Business, NSE, Olumide Bolumole, on behalf of the National Council and Management of the NSE, commended Omojokun on her election as President and FMAN for its continuous collaboration in ensuring increased efficiency and investor participation in the Nigerian mutual funds market.
“As at 19 February 2021, the number of registered mutual funds with SEC has grown from 76 in 2019 with Net Asset Value (NAV) in excess of N600bn to 102 with NAV of over N1.43Tn; 56 of which are listed on the NSE with NAV of over N1.24Tn representing 88.3% of total NAV. This confirms the NSE as the preferred listing destination for this asset class and we will continue to strategically position ourselves to support the growth of our fund managers and our stakeholders.” Bolumole said.
On her part, the new president of FMAN thanked the NSE for honouring her noting that FMAN is collaborating with the X-Academy to train members and the public on adopting best investment practices for the development of the capital market.
“FMAN was established to promote the operations of fund managers registered with the SEC and its objectives include self-regulation and supervision of its members; the enforcement of global best practices in its members’ operations, and most importantly, the education of the public on investments. Working with the NSE has brought about the trading of listed funds on The Exchange and are working towards the display of mutual funds prices on the ticker tape of the NSE.” Omojokun said
Last year, The Exchange 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 round increased efficiency in terms of competitive pricing structures, improved turnaround time and enhanced customer experience as market participants continue to look forward to more listings in the coming months.