If you’re a Nigerian investor seeking to protect your wealth from local currency risks while earning attractive dollar returns, this fund ticks all the boxes.
In the ever-evolving landscape of Nigerian investments, where currency fluctuations and economic uncertainties loom large, savvy investors are turning to dollar-denominated funds for stability and growth. Leading the pack in the first half of 2025 is the Comercio Partners Dollar Fund, which clinched the top spot among the highest-yielding dollar funds with an impressive 13.7% yield and a net asset value (NAV) of N800.57 million, according to data from Nairametrics and the Securities and Exchange Commission (SEC). But what makes this fund stand out? In this comprehensive guide, we’ll dive into the Comercio Partners Dollar Fund, exploring its objectives, investment strategy, performance, and why it could be the perfect addition to your portfolio in Nigeria’s dynamic market.
What is the Comercio Partners Dollar Fund?
The Comercio Partners Dollar Fund is an open-ended mutual fund managed by Comercio Partners Asset Management, a reputable Nigerian firm specialising in asset management solutions. Launched on May 22, 2023, this fund is designed to provide investors with exposure to US dollar-denominated assets, helping to hedge against Naira devaluation while delivering competitive returns. It’s regulated by the Securities and Exchange Commission (SEC) in Nigeria, ensuring transparency and adherence to high standards.
Unlike traditional Naira-based investments, this fund operates in USD, making it an attractive option for those looking to diversify their currency risk. With a team of experienced fund managers—including Kenneth Brai, Opeyemi Babalola, and Uduak Jacob—at the helm, the fund focuses on medium-risk strategies that balance growth with security.
Key Objectives of the Comercio Partners Dollar Fund
At its core, the primary objective of the Comercio Partners Dollar Fund is income generation and capital preservation. This dual focus makes it ideal for investors who want steady returns without exposing their capital to excessive volatility. Specifically, the fund aims to:
- Generate Consistent Income: By investing in high-quality, interest-bearing instruments, the fund seeks to provide regular income streams through yields and distributions.
- Preserve Capital: Emphasizing stable, dollar-based assets to protect against inflation and currency depreciation in Nigeria.
- Diversify Currency Risk: Targeted at investors seeking to mitigate the impact of Naira fluctuations by earning returns in US Dollars.
This objective aligns perfectly with the needs of Nigerian investors navigating economic challenges, such as rising inflation and forex volatility.
Investment Strategy and Asset Allocation
The fund’s strategy is straightforward yet effective: it invests predominantly in fixed-income securities that offer reliable yields while maintaining a medium-risk profile. Key components include:
- Nigerian Sovereign, Corporate, and Supranational Eurobonds: These form the bulk of the portfolio (75%-100%), providing exposure to government and corporate bonds denominated in USD.
- USD-Denominated Bank Placements: Up to 30% allocation for short-term, secure deposits that enhance liquidity and yield.
- Cash and Cash Equivalents: A small portion (0%-5%) to ensure flexibility and quick access to funds.
This allocation strategy allows the fund to capitalize on opportunities in the Nigerian Eurobond market while keeping risks in check. It’s tailored for medium- to long-term horizons, making it unsuitable for those needing high liquidity but perfect for patient investors eyeing sustainable growth.
Performance Highlights: Why It’s Leading in 2025
The Comercio Partners Dollar Fund has been a standout performer, especially in 2025. As of August 11, 2025, the fund boasts:
- Year-to-Date (YTD) Return: 15.10% – a significant jump from its H1 2025 yield of 13.7%, outperforming its benchmark of 1.440%.
- Bid Price: $1.08, with a positive one-day change of $0.0006.
- Top Ranking: In July 2025, it was announced as the highest-yielding SEC-registered dollar fund in Nigeria, underscoring its dominance in the market.
These metrics highlight the fund’s resilience and ability to deliver superior returns amid global economic shifts. For context, in a comparison of dollar funds in Nigeria, it consistently ranks high for yield-to-date rates, making it a go-to choice for high-yield USD investments.
| Metric | Value (as of Aug 11, 2025) |
|---|---|
| YTD Performance | 15.10% |
| Benchmark | 1.440% |
| Bid Price | $1.08 |
| Minimum Investment | $1,000 |
Who Should Invest in the Comercio Partners Dollar Fund?
This fund is best suited for:
- Retail and Institutional Investors: From individuals to corporations looking for diversified portfolios.
- Moderate Risk Tolerance: Those comfortable with medium risk levels.
- Medium- to Long-Term Horizon: Ideal for investors planning to hold for several months to years.
- Low Liquidity Needs: Not for those requiring frequent withdrawals, due to potential early exit penalties.
If you’re a Nigerian investor seeking to protect your wealth from local currency risks while earning attractive dollar returns, this fund ticks all the boxes.
Potential Risks to Consider
No investment is without risks, and the Comercio Partners Dollar Fund is no exception. Key risks include:
- Credit Risk: Possibility of issuers defaulting on bonds.
- Interest Rate Risk: Fluctuations in rates could affect bond values.
- Currency Risk: While denominated in USD, broader forex movements may impact returns.
Investors should assess their risk appetite and consult financial advisors before committing.
Fees, Costs, and How to Get Started
Getting involved is straightforward and investor-friendly:
- Management Fee: 1.5% per annum of the NAV.
- Early Exit Penalty: 20% of income earned if withdrawn early.
- Minimum Initial Investment: $1,000.
- Additional Investments: $500 increments.
To invest, head to the Comercio Partners portal at https://portal.comerciopartners.com. You can also download the latest factsheet from their website for deeper insights.
Why Choose the Comercio Partners Dollar Fund in 2025?
In a year where dollar funds are proving essential for Nigerian investors, the Comercio Partners Dollar Fund emerges as a leader with its strong objectives of income and preservation, robust performance, and strategic focus on USD assets. Whether you’re hedging against inflation or building long-term wealth, this fund offers a compelling blend of security and yield. Don’t miss out—explore your options today and position yourself for financial success in Nigeria’s evolving economy.
Disclaimer: This article is for informational purposes only and not financial advice. Past performance is not indicative of future results. Always conduct due diligence or consult a professional advisor.