Nigerian fixed-income funds delivered impressive performance in Q2 2025, with top performers yielding over 20% despite challenging market conditions. As investors seek alternatives to volatile equities and protection from inflation, professionally-managed bond funds have emerged as compelling investment options.
According to Securities and Exchange Commission (SEC) data for the week ended July 4, 2025, fixed income funds collectively manage over ₦200 billion in assets, providing Nigerian investors with diversified exposure to government bonds, corporate debt, and money market instruments.
Based on year-to-date yields from the latest SEC valuation reports, here are Nigeria's best-performing fixed income funds:
|
Rank |
Fund Name |
Fund Manager |
YTD Yield |
NAV (₦Million) |
Unitholders |
|
1 |
Comercio Partners Asset Management |
30.00% |
161.8 |
30 |
|
|
2 |
United Capital Asset Management |
21.38% |
32,852.8 |
710 |
|
|
3 |
DLM Asset Management |
20.73% |
2,000.3 |
367 |
|
|
4 |
Radix Horizon Fund |
Radix Capital Partners |
19.63% |
552.8 |
142 |
|
5 |
Stanbic IBTC Asset Management |
19.59% |
491.8 |
15 |
|
|
6 |
SFS Fixed Income Fund |
SFS Capital Nigeria |
19.02% |
9,270.3 |
4,747 |
|
7 |
Lead Fixed Income Fund |
Lead Asset Management |
18.73% |
1,553.9 |
531 |
|
8 |
Meristem Wealth Management |
17.08% |
599.1 |
56 |
|
|
9 |
Trustbanc Fixed Income Fund |
Trustbanc Asset Management |
16.98% |
82.5 |
21 |
|
10 |
ARM Investment Managers |
16.53% |
1,299.2 |
1,026 |
The exceptional performance of fixed income funds reflects Nigeria's evolving bond market dynamics in Q2 2025. Despite initial bearish sentiment that pushed average yields up 24 basis points to 18.67% in April, the quarter ended positively with yields declining 63 basis points in June.
Interestingly, the best-performing fund, Comercio Partners Fixed Income Fund, manages just ₦161.8 million with only 30 unitholders, demonstrating that boutique fund managers can deliver superior returns through focused strategies.
The performance disparity highlights the importance of active management and strategic positioning over mere fund size.
Fixed income funds provided stability during Q2 2025's market volatility, contrasting with equity market fluctuations. While money market funds averaged 21%+ returns, fixed income funds offered competitive yields with additional duration exposure and potential capital appreciation.
Interest Rate Risk: Rising rates can negatively impact bond prices, though higher yields benefit new investments.
Credit Risk: Corporate bond exposure requires careful credit analysis and diversification.
Liquidity Risk: Some funds may face redemption pressures during market stress.
Inflation Protection: While yields appear attractive, real returns depend on inflation trends.
For Conservative Investors: Consider funds like United Capital Stable Income Fund or ARM Fixed Income Fund, which combine scale with consistent performance.
For Yield Seekers: Smaller boutique funds like Comercio Partners or Radix Horizon offer higher returns but require higher risk tolerance.
For Diversification: Combine fixed income funds with money market alternatives to optimize risk-adjusted returns.
Nigeria's fixed-income sector benefits from attractive yields and improving economic fundamentals. The Central Bank's monetary policy stance continues to support bond market performance, while fiscal discipline enhances government bond creditworthiness.
Ready to explore fixed income investment opportunities? Use nairaCompare's fixed income fund comparison tool to evaluate funds based on performance, fees, and investment objectives.
Bottom Line: Q2 2025 demonstrated fixed income funds' resilience and income-generating potential, with top performers delivering 15-30% yields. These professionally-managed funds offer Nigerian investors stable alternatives to volatile equity markets while providing attractive returns above inflation.