Nigeria’s mutual funds grow by N1.5tr | Dailytrust

Nigeria’s mutual funds grow by N1.5tr

Coronation Asset Management (CAM) has unveiled its report of mutual funds for 2020, disclosing an increase of N1.5 trillion.

The Research Team Head, Guy Czartoryski, said the report was to address the challenges in the mutual fund sector of the economy and fast track its development.

He said the nation’s mutual fund is developing fast with total assets increasing by N1.57 trillion, a 50 percent increase last year, noting that it could have done better with the right knowledge of the industry.

He further explained that despite the increase, the sector has access to only 14 percent of the huge pension fund available in the country, and needs to do more to become a force in the country’s financial sector.

“Diverse measures stand in the way of the development of the industry, adding that although it is growing rapidly, his team believes the nation’s mutual fund requires several more years of growth to reach N12.3tr.”

The firm also called for a harmonised reporting standard for mutual funds in the country to align with global best practices and encourage the growth of the industry.

“Although it is growing rapidly, we believe that Nigeria’s Mutual Fund industry requires several more years of growth to reach the N12.3tr total size of Nigeria’s Pension Funds,” Czartoryski said.