Nigeria’s dollar mutual funds continued to attract investor interest in the first half of 2025, with the Net Asset Value (NAV) rising by 12.4% to N1.92 trillion as of June 2025, according to the latest data from the Securities and Exchange Commission (SEC).
Dollar mutual funds are collective investment schemes that primarily allocate capital to Eurobonds and other dollar-denominated fixed income securities, offering Nigerian investors a reliable hedge against the depreciation of the local currency while providing access to relatively stable returns.
These funds have gained popularity among both retail and institutional investors looking to diversify their portfolios and protect wealth against currency risk.
As of the end of June 2025, the 34 SEC-registered dollar mutual funds delivered an average year-to-date yield of 6.73%, slightly below the 7.63% recorded at the close of 2024.
This decline is largely attributable to falling yields in the global fixed income market, driven by interest rate cuts from major central banks, including the U.S. Federal Reserve.
The global monetary easing cycle has led to a compression in yields across most fixed income instruments, including Eurobonds, which constitute a significant portion of the funds’ underlying assets.
Data from the Debt Management Office (DMO) indicates that average Eurobond yields dipped from 9.525% at the start of the year to 8.534% by the end of June, further explaining the moderation in returns from dollar mutual funds.
While yields may have moderated, the hedge against FX volatility remains a compelling reason for continued investment in dollar mutual funds. Fund managers have responded by adopting diversified strategies to enhance returns, including selective positioning in high-quality sovereign and corporate Eurobonds.
Below is a list of the highest-yielding dollar mutual funds as of July 27, 2025.
Top 10 Yielding Dollar Funds in H1 2025
- FSL Eurobond Fund – 8.70%
- Fund Manager: FSL Asset Management Limited
- Yield (YTD): 8.70%
- NAV (June 2025): N1 billion
- Unit holders: 8 subscribers
- United Capital Global Fixed Income Fund – 9.19%
- Fund manager: FSL Asset Management Limited
- Yield (YTD): 9.19%
- NAV: N183.64 billion
- Unit holders: 735 subscribers
- Lead Dollar Fixed Income Fund – 9.23%
- Fund manager: Lead Asset Management Limited
- Yield (YTD): 9.23%
- NAV: N1.57 billion
- Unit holders: 53 subscribers
- Norrenberger Dollar Fund – 9.56%
- Fund manager: Norrenberger Asset Management Limited
- Yield (YTD): 9.56%
- NAV: N31.12 billion
- Unit holders: 673 subscribers
- Meristem Dollar Fund – 9.67%
- Fund manager: Meristem Wealth Management Limited
- Yield (YTD): 9.67%
- NAV: N5.31 billion
- Unit holders: 134 subscribers
- United Capital Nigerian Eurobond Fund – 9.7%
- Fund manager: United Capital Asset Mgt. Ltd
- Yield (YTD): 9.70%
- NAV: N177.53 billion
- Unit holders: 3,772 subscribers
- Cowry Eurobond Fund – 11.67%
- Fund manager: Cowry Treasurers Limited
- Yield (YTD): 11.67%
- NAV: N453.8 million
- Unit holders: 46 subscribers
- AVA GAM Fixed Income Dollar Fund – 12.59%
- Fund manager: AVA Global Asset Managers Limited
- Yield (YTD): 12.59%
- NAV: N1.88 billion
- Unit holders: 23 subscribers
- Futureview Dollar Fund – 13.02%
- Fund manager: Futureview Asset Management Limited
- Yield (YTD): 13.02%
- NAV: 251.8 million
- Unit holders: 9 subscribers
- Comercio Partners Dollar Fund
- Fund manager: Comercio Partners Asset Management Limited
- Yield (YTD): 13.7%
- NAV: N800.57 million
- Unit holders: 31 subscribers
Bottom line
Dollar-denominated mutual funds have solidified their position as a preferred investment option for Nigerians looking to protect their wealth against exchange rate volatility, navigate the impact of global interest rate fluctuations, and preserve value amid persistent inflationary pressures.
As market conditions evolve, these funds are likely to remain a key part of diversified investment strategies for both retail and institutional investors.
