Coronation Asset Management Releases its Report on Mutual Fund

Chiamaka Ozulumba

Coronation Asset Management has released its report on ‘Comparing Mutual Funds – Apples and Oranges’.

This new report addresses developments in Nigeria’s fast-growing Mutual Fund industry where the total assets under management grew by 50 per cent to Naira 1.57 trillion last year.

In the report, the Coronation Research team, headed by Guy Czartoryski, examined what happens when an investor seeks comparative information on Mutual Funds, and takes the example of Naira-denominated Fixed Income funds. The results are surprising.

The data reported by these funds is very diverse, with different accounting methods used to arrive at very different unit price performance data.

This means that investors lack the kind of easy comparisons between funds that exist in developed markets, comparisons that can be found on the Morningstar and Financial Times websites.

“In our view, Nigeria’s diverse measures stand in the way of the development of the industry” says Guy Czartoryski, Head of Coronation Research.

“Although it is growing rapidly, we believe that Nigeria’s Mutual Fund industry requires several more years of growth to reach the Naira 12.3 trillion total size of Nigeria’s Pension Funds”.

Harmonisation of its reporting may be a difficult task, making the effort now will lead to Mutual Funds becoming a significant force in Nigeria’s financial infrastructure.

Coronation Research is a division of Coronation Asset Management which offers full-fledged investment services across various asset classes to the entire spectrum of investors: major institutions, smaller niche institutions & corporates, public sector family offices, cooperatives and high net-worth individuals.

The firm’s services include fund solutions (money market fund, fixed income fund and balanced fund), portfolio management (discretionary and non-discretionary), advisory services as well as fund administration and trustee services offered through its subsidiary, Coronation Trustees Limited.

In recognition of its product innovation and sound corporate governance practices, Coronation Asset Management was awarded the Fastest Growing Fund Management Company in Nigeria at the 2020 Global Banking & Finance Awards.