Nigeria equity funds shrink 11.98% in June but gain investors
Nigerian equity mutual funds saw their net asset value drop 11.98% in June as investors locked in first-half gains, but the segment continued to attract new capital, highlighting sustained appetite for equity exposure.
Nigerian equity mutual funds saw their combined net asset value fall 11.98% to N234.86 billion in June, down from N266.82 billion the previous month. The decline reflects a broad market correction as investors locked in profits following a strong first-half rally across local equities.
Despite the shrinking asset base, the segment continues to draw fresh capital. Total unitholders increased by 5,537, or 5.17%, to 112,674 in June, up from 107,137 in May. This divergence between falling valuations and rising participation indicates that investors are treating the June pullback as a buying opportunity, seeking long-term capital appreciation.
The equity fund category remains a small fraction of the broader Nigerian mutual fund industry. Its 20 funds now account for just 2.58% of total industry assets, down from 2.96% in May. However, the returns on offer remain highly attractive to those willing to absorb higher volatility in exchange for diversified exposure to sectors like banking, consumer goods, industrial goods, and oil and gas.
The top 10 performing funds managed N84.23 billion collectively, representing 35.87% of the total equity category. Year-to-date returns for this cohort ranged from 42.91% to 91.11%, demonstrating the substantial gains accumulated before the June correction took hold.
Zedcrest Equity Fund retained the top spot for a second consecutive month with a 91.11% year-to-date return, although this was down from 108.42% in May. The fund manages N8.70 billion for 4,931 unitholders. Futureview Equity Fund posted the largest ranking jump, moving up three places to second with a 79.38% return, though it operates with a relatively small asset base of N190.82 million across just 56 unitholders.
The performance leaderboard highlights a split between large, retail-focused funds and smaller, high-conviction portfolios. Zrosk Magna Equity Fund ranked fourth with a 60.28% return and the highest asset base in the top ten at N22.81 billion, despite having only 183 unitholders. Conversely, Chapel Hill Denham’s Paramount Equity Fund holds the most unitholders in the top tier at 19,694. It posted a 50.17% year-to-date return on N21.86 billion in assets.
Further down the rankings, CardinalStone Equity Fund rose two places to fifth with a 53.58% return and N12.56 billion in assets. Meristem Equity Market Fund slipped to ninth with a 45.25% return, managing N9.76 billion. The data suggests that while the immediate momentum of the first-half rally has cooled, the structural appetite for Nigerian equity exposure remains intact.
