Dollar mutual funds operating within Nigeria’s financial ecosystem saw robust asset expansion in the first half of 2025, with total Net Asset Value (NAV) climbing by 12.4% to reach ₦1.92 trillion by the end of June, new figures from the Securities and Exchange Commission (SEC) reveal.
These investment vehicles, primarily composed of Eurobonds and other dollar-denominated fixed income assets, remain attractive for investors seeking to shield their portfolios from naira volatility. Dollar mutual funds are structured to deliver steady returns while offering a hedge against the weakening local currency, making them particularly appealing to both institutional and retail investors.
According to SEC data, Nigeria currently hosts 34 registered dollar mutual funds. Collectively, these funds recorded an average yield of 6.73% year-to-date (YTD) by the end of June 2025. This is slightly below the 7.63% average posted at the close of 2024, a change largely attributed to the global downturn in bond yields.
Central banks across the globe, including the U.S. Federal Reserve, have embarked on a rate-cutting trajectory as part of a broader monetary easing cycle. This shift has led to a downward repricing of yields on fixed income securities worldwide—Eurobonds in particular, which constitute a major share of the portfolios managed by dollar fund managers in Nigeria.
The Debt Management Office (DMO) also reports that average Eurobond yields have fallen from 9.525% at the start of the year to 8.534% as of June 30, 2025. This dip has tempered the returns investors have come to expect from dollar-denominated assets.
Nonetheless, the stability offered by these funds amid exchange rate uncertainties remains a key draw. In response to global rate movements, many fund managers have fine-tuned their strategies, diversifying across premium sovereign and corporate Eurobonds to preserve yields and ensure long-term sustainability.
Here is a snapshot of the dollar mutual funds that have delivered the most attractive yields so far in 2025:
Top Performing Dollar Mutual Funds in Nigeria – H1 2025
| Fund Name | Fund Manager | YTD Yield | NAV (₦) | Unit Holders |
|---|---|---|---|---|
| Comercio Partners Dollar Fund | Comercio Partners Asset Management Ltd | 13.7% | ₦800.57 million | 31 |
| Futureview Dollar Fund | Futureview Asset Management Ltd | 13.02% | ₦251.8 million | 9 |
| AVA GAM Fixed Income Dollar Fund | AVA Global Asset Managers Ltd | 12.59% | ₦1.88 billion | 23 |
| Cowry Eurobond Fund | Cowry Treasurers Ltd | 11.67% | ₦453.8 million | 46 |
| United Capital Nigerian Eurobond Fund | United Capital Asset Mgt. Ltd | 9.70% | ₦177.53 billion | 3,772 |
| Meristem Dollar Fund | Meristem Wealth Management Ltd | 9.67% | ₦5.31 billion | 134 |
| Norrenberger Dollar Fund | Norrenberger Asset Management Ltd | 9.56% | ₦31.12 billion | 673 |
| Lead Dollar Fixed Income Fund | Lead Asset Management Ltd | 9.23% | ₦1.57 billion | 53 |
| United Capital Global Fixed Income Fund | United Capital Asset Mgt. Ltd | 9.19% | ₦183.64 billion | 735 |
| FSL Eurobond Fund | FSL Asset Management Ltd | 8.70% | ₦1 billion | 8 |
Outlook: Demand for Dollar Mutual Funds Remains Resilient
Despite the global yield compression, Nigerian investors continue to favour dollar mutual funds as a strategic hedge against local economic pressures, including persistent inflation and foreign exchange instability.
With increasing sophistication in fund strategy and a growing appetite for foreign currency exposure, dollar mutual funds are likely to remain a cornerstone for wealth preservation in Nigeria’s dynamic financial landscape. As market dynamics shift in the second half of 2025, fund managers are expected to maintain tactical asset allocations to navigate global headwinds while sustaining investor confidence.
