Nigeria’s greenback mutual funds continued to draw investor curiosity within the first half of 2025, with the Internet Asset Worth (NAV) rising by 12.4% to N1.92 trillion as of June 2025, in response to the newest information from the Securities and Alternate Fee (SEC).
Greenback mutual funds are collective funding schemes that primarily allocate capital to Eurobonds and different dollar-denominated mounted earnings securities, providing Nigerian buyers a dependable hedge in opposition to the depreciation of the native forex whereas offering entry to comparatively steady returns.
These funds have gained recognition amongst each retail and institutional buyers seeking to diversify their portfolios and defend wealth in opposition to forex danger.
As of the tip of June 2025, the 34 SEC-registered greenback mutual funds delivered a mean year-to-date yield of 6.73%, barely under the 7.63% recorded on the shut of 2024.
This decline is essentially attributable to falling yields within the international mounted earnings market, pushed by rate of interest cuts from main central banks, together with the U.S. Federal Reserve.
The worldwide financial easing cycle has led to a compression in yields throughout most mounted earnings devices, together with Eurobonds, which represent a good portion of the funds’ underlying property.
Knowledge from the Debt Administration Workplace (DMO) signifies that common Eurobond yields dipped from 9.525% firstly of the yr to eight.534% by the tip of June, additional explaining the moderation in returns from greenback mutual funds.
Whereas yields might have moderated, the hedge in opposition to FX volatility stays a compelling motive for continued funding in greenback mutual funds. Fund managers have responded by adopting diversified methods to reinforce returns, together with selective positioning in high-quality sovereign and company Eurobonds.
Under is a listing of the highest-yielding greenback mutual funds as of July 27, 2025.
Prime 10 Yielding Greenback Funds in H1 2025
Backside line
Greenback-denominated mutual funds have solidified their place as a most popular funding possibility for Nigerians seeking to defend their wealth in opposition to alternate fee volatility, navigate the influence of worldwide rate of interest fluctuations, and protect worth amid persistent inflationary pressures.
As market circumstances evolve, these funds are prone to stay a key a part of diversified funding methods for each retail and institutional buyers.
