Best Performing Dollar Funds in Q3 2025

Nigerian dollar mutual funds demonstrated resilience in Q2 2025, with top performers delivering yields exceeding 13% while providing crucial currency hedging against Naira volatility. As the sector's Net Asset Value (NAV) grew 12.4% to ₦1.92 trillion by June 2025, these professionally-managed funds continue offering investors essential portfolio diversification and foreign exchange protection. 

According to Securities and Exchange Commission (SEC) data for the week ended July 4, 2025, the 34 registered dollar mutual funds averaged 6.73% year-to-date yields, maintaining their position as preferred hedging instruments for Nigerian investors. 

Top 10 Performing Dollar Funds in Q3 2025 

Based on year-to-date performance from the latest SEC valuation reports, here are Nigeria's highest-yielding dollar funds: 

Market Performance Overview 

Dollar mutual funds delivered solid performance despite global interest rate volatility and emerging market pressures. The sector's average 6.73% yield, while below 2024's 7.63%, reflects the successful navigation of challenging global fixed-income markets. 

Key Performance Drivers: 

• Eurobond Quality: Focus on high-grade Nigerian sovereign and corporate Eurobonds 

• Active Management: Strategic positioning across the yield curve and credit spectrum 

• Currency Benefits: Naira depreciation enhanced returns for local investors 

• Diversification: Risk management through multi-bond portfolios 

Investment Strategy Analysis 

Comercio Partners Dollar Fund leads with 13.70% returns through focused boutique management serving 31 unitholders with ₦800 million in assets. Their concentrated approach enables nimble positioning in high-conviction opportunities. 

United Capital Nigerian Eurobond Fund demonstrates scale advantages, managing ₦177.5 billion for 3,772 investors while delivering competitive 9.70% yields. As Nigeria's largest dollar fund, it offers institutional-grade diversification and liquidity. 

Stanbic IBTC Dollar Fund, while yielding 3.35%, commands the largest asset base at over ₦1 trillion, serving 11,240 unitholders with enhanced stability and accessibility. 

Currency Hedging Benefits 

Dollar funds provide essential protection against Naira volatility, particularly valuable during periods of exchange rate uncertainty. With parallel market rates fluctuating significantly, these funds offer: 

FX Protection: Returns denominated in USD preserve purchasing power. Inflation Hedge: Dollar yields typically exceed local inflation rates. Portfolio Diversification: Reduces concentration in Naira-denominated assets. Professional Management: Expert navigation of global bond markets 

Sector Outlook and Opportunities 

Nigeria's dollar fund sector benefits from continued investor appetite for currency hedging and yield enhancement. The Federal Government's consistent Eurobond servicing record supports fund stability, while global rate environments create opportunities for active management. 

Growth Catalysts: 

• Persistent Naira volatility is driving hedging demand 

• Quality sovereign credit maintaining investor confidence 

• Institutional adoption increasing sector assets 

• Retail investor education expanding market reach 

Investment Considerations 

Minimum Thresholds: Most funds require $100-$1,000 initial investments

Management Fees: Typically 1.5-2.5% annually for professional oversight

Liquidity: Redemption periods vary from weekly to monthly

Tax Efficiency: Foreign Investment Income Tax Implications 

Risk Factors: 

• Global interest rate sensitivity 

• Credit risk from underlying Eurobonds 

• Currency conversion timing impacts 

• Regulatory changes affecting foreign investments 

Getting Started 

Ready to explore dollar fund opportunities? Use nairaCompare's dollar fund tool to compare fund performance, fees, and investment requirements across leading managers. 

Bottom Line: Q3 2025 showcased dollar funds' resilience and hedging value, with top performers delivering 8-14% yields while providing essential currency protection. These professionally-managed funds remain crucial components of diversified Nigerian investment portfolios, offering both yield enhancement and FX risk mitigation in volatile market conditions.