The Nigerian stock market kicked off 2025 on a positive note, with the All-Share Index (ASI) rising by 1.53% in January. This modest gain set the stage for equity-based collective investment funds, whose performance closely aligns with the broader market trends.
Equity funds offer investors diversification and professional management, reducing risk exposure compared to investing in individual stocks. Based on the Securities and Exchange Commission (SEC) valuation reports, some funds outperformed the ASI. Below are the top-performing Nigerian equity funds in January 2025.
Halo Equity Fund – 110.79% YtD Return
Topping the list is the Halo Equity Fund, managed by Halo Asset Management Limited, with an impressive 110.79% year-to-date (YtD) return. This follows a strong 98.91% return in 2024. While such high gains suggest strong fund management, the relatively small Net Asset Value (NAV) of N16.644 billion makes it more vulnerable to market fluctuations.
Frontier Fund – 72.24% YtD Return
Following closely is the Frontier Fund, managed by SCM Capital Limited, which delivered a 72.24% YtD return in January. With a NAV of N446.031 billion and 2,466 unit holders, this fund is more stable compared to smaller funds. However, investors should consider the N9.70 bid-ask spread, which affects trading costs.
Guaranty Trust Equity Income Fund – 6.16% YtD Return
Managed by Guaranty Trust Fund Managers (a subsidiary of GTCO), this fund saw a 6.16% YtD return in January after delivering 23.31% in 2024. Despite its lower yield, it offers stability, with a NAV of N641.688 billion and a low bid-ask spread of 0.03, making it highly liquid.
Stanbic IBTC Aggressive Fund – 4.69% YtD Return
This fund, managed by Stanbic IBTC, recorded a 4.69% YtD return, following a 47% return in 2024. With a NAV of N800.123 billion, it holds a strong market presence. However, its high bid-ask spread of N108.67 suggests higher trading costs for investors.
Meristem Equity Market Fund – 4.56% YtD Return
Closing the top five is the Meristem Equity Market Fund, managed by Meristem Wealth Management Limited, with a 4.56% YtD return. Its NAV of N896.426 billion and low bid-ask spread of 0.08 make it a reliable option for investors seeking long-term growth.
Key Takeaways for Investors
- High-risk, high-reward funds like Halo Equity Fund and Frontier Fund offer significant returns but come with volatility.
- Stable, long-term funds like Guaranty Trust Equity Income Fund and Meristem Equity Market Fund provide balanced growth.
- Liquidity and bid-ask spreads should be considered when selecting a fund to optimize trading costs.
While past performance does not guarantee future success, these rankings provide insight into Nigeria’s equity fund landscape, helping investors align their choices with their risk tolerance and financial goals.
