Coronation Asset Management today releases 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, examine 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”.
Harmonization 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.
To download the full report, visit www. coronationam.com
