INVESTING RIGHT: THE MUTUAL FUNDS OPTION

Sometime in 2008, Total E & P, now Total Energies, one of the leading oil companies in Nigeria, engaged me and my team at Moneywise, a personal finance company, to organise an investment education series for their staff in Lagos and Port Harcourt. After a successful session in their Lagos office, we were flown in one of their small private planes to one of their platforms in Port Harcourt for the second leg of the training.

Riding on that plane to Port Harcourt was a very tough experience. The plane flew at a very low altitude and could not absorb the torrents of turbulence we encountered on the way. We were about 10 on the plane, and we all became nervous as the plane tore through the heavy winds. I did not partake in the small chops they were serving. Interestingly, while most of us were experiencing some inner turmoil, the lead pilot and his assistant were relaxed and chatting away. When we eventually landed in Port Harcourt (a big relief, indeed), I decided to corner the pilot and ask him what gave him confidence while the rest of us were panicking. His answer was simple but profound: knowledge. He said the more knowledge you have, the less you operate in fear. Put differently, ignorance is the major propeller of fear.

I have discovered that this statement holds true in every area of endeavour and more interestingly, in the area of investment. As a financial journalist since 1990, I have observed this truth in the area of investment. For instance, I have been close to a billionaire investor since that period who has raked in an incredible amount of money investing in stocks, real estate, gold etc. I noticed that his investment strategies were most times contrarian: when the majority of ordinary investors were selling in panic, he would calmly instruct his stock brokers to buy large quantities of the same stocks many were disposing of. His confidence, I later understood as I got closer to him, was based on his depth of knowledge in the area of investment. He had gone ahead to acquire certifications in stock broking, finance, and investment law, even though he was trained as an engineer.

Since the 2008 episode of stock market crash, a lot of ordinary investors have never looked in the direction of stock investment, unwilling to let go of their unpleasant experiences. Yet informed investors, including my billionaire investor, have continued to rake in cash investing in the capital market arena, not necessarily in stocks, but largely in their derivatives. How many people are aware, for instance, that with as little as N5,000, you can start to rub shoulders with big-time investors while the associated risks are largely attenuated?

In its mission to educate the investing public, THISDAY Economic Insights Unit, a newly created division of THISDAY devoted largely to market intelligence, has decided to start a series of special reports focusing on investment education. In this very first edition of the series we are focusing on mutual funds as investment options and how they can widen the range of instruments in investors’ portfolios.

In the process of putting the reports together, we decided to despatch our analysts and reporters into the field to pick the minds of investment experts on this investment option that is not quite popular among the ordinary investing public.

Apart from our research, which yielded some interesting insights, we also picked the minds of top fund managers, operators in the capital market and members of the Funds Managers Association of Nigeria (FMAN). We wanted to unravel so many questions on the concepts. We wanted to know, for instance: What is a mutual fund? How have they fared in Nigeria? What are the compelling reasons people should consider investing in mutual funds? What are the strategies for deciding the best funds to invest in? What is responsible for the low level of awareness of the investment instrument? What are the prospects? We posed those questions to as many of the operators as we could get, and we got answers to all.

President of Funds Managers Association of Nigeria, Mr. Aigbovbiose Aig-Imoukhuede

One of our analysts pinned down Mr Aigbovbioise Aig-Imoukhuede, President of the Fund Manager Association of Nigerian (FMAN), who is also Managing Director of Coronation Asset Management Limited, who broke down the concept for us. You will find this in his interview published in this report.

ABIMBOLA OLASHORE

Abimbola Olashore, former MD of Lead Merchant Bank and one of the experienced operators in the fund management industry stated that the beauty of investing in a mutual fund is that it gives the same rate of return to all investors irrespective of the volume of investment. You will also enjoy his interview accommodated in this edition.

Prince Yemisi Shyllon, an enlightened investor, however, warned investors not to invest in equity mutual funds because it has a very high risk amid the current business operating environment in Nigeria.

According to Shyllon, the debt mutual fund has numerous opportunities, and he recommended it for investors at this period, stating that the money market mutual funds have low risk, and of course, investors with small capital can invest. You will find the rest of his views in one of the articles accommodated here containing his views.

We also asked Mr. Aig-Imoukhuede about the implication of the fluctuating fortunes relative to other currencies on the prospects of those investing in the naira-denominated variant of mutual funds. His answers were very reassuring: “Yes, there are dollar-denominated mutual funds in the market, and as of the 25th of August 2023, there were 20 SEC-licensed dollar funds with a combined Net Asset Value or NAV of N584.92 billion. You will enjoy his enlightening interview published in this report also.

In the special report, we also featured the top 10 operators in the market and equally picked the minds of many other top-level operators in the industry.

May I write here that this is just the first in the series of THISDAY surveys targeted at educating the investing public. We encourage you to settle down and devour everything served on the menu laid out in the pages ahead.

Bon appetite.

ALL ABOUT MUTUAL FUNDS

Kayode Tokede

A mutual fund is an investment vehicle made up of a pool of funds collected from numerous investors to invest in securities such as stocks, bonds, money market instruments, and similar assets.

Mutual funds are operated by professional fund managers, who invest the fund’s capital and attempt to produce capital gains and income for the investors.

The first modern mutual fund was launched in the U.S. in 1924. The oldest mutual fund still in existence is MFS’ Massachusetts Investors Trust (MITTX), also established in 1924. The Exchange-Traded Fund (ETF), a modern variation, has taken the market by storm since the global recession of 2007–2009.

The idea of pooling resources and spreading risk using closed-end investments found its way to the U.S. by the 1890s. The Boston Personal Property Trust, formed in 1893, was the first closed-end fund in the U.S.

According to Collins Advisors, the investments were primarily in real estate and the vehicle might today be described as a hedge fund rather than a mutual fund.

For decades, mutual funds have had worldwide popularity and according to the Investment Company Institute, represent over 20 percent of total global assets under management. Unfortunately, a lot of Nigerians are not taking full advantage of its benefits.

Mutual fund is uncommon among Nigerian investors just like FGN Savings, and ETF, among others.

How have mutual funds fared in Nigeria?

The Securities and Exchange Commission (SEC) revealed that the total Net Asset Value (NAV) of 133 registered mutual funds stood at N1.42 trillion as of December 31, 2022, from N1.3 trillion NAV from 120 registered mutual funds in 2021.

The total global net assets of mutual funds registered in the United States amounted to approximately $22.1 trillion in 2022, compared to around $5.53 trillion in 1998, meaning that Nigeria is still far behind.

There are different types of mutual funds in Nigeria and investors can decide to invest in any as long as it is regulated by the SEC.

Among those are:

1. Shari’ah Compliant Funds (equities),

2. Money Market funds,

3. Bond or fixed-income funds,

4. Dollar funds,

5. Fixed funds

6. Real estate,

7. Mixed funds, and

8. Ethical funds.

How mutual funds rank

According to THISDAY findings, Stanbic IBTC, FBNQuest, United Capital Asset Management, and seven other firms emerged as the top 10 of the SEC-regulated mutual fund asset managers in Nigeria, having 147 total products under management in 2022.

The other biggest SEC-regulated mutual fund asset managers are:

9. Chapel Hill Denham Management,

10. ARM Investment Management,

11. Guaranty Trust Fund Managers,

12. AXA Mansard Investments,

13. Quantum Zenith Asset Management & Investment,

14. Lotus Capital, and

15. SFS Capital Nigeria.

Stanbic IBTC Asset Management led the pack, having assets worth N627.34 billion with 17 products managed. This represents 41.3 per cent of the total top 10 asset managers worth N1.5 trillion.

FBNQuest Asset Management followed with assets worth N238.11 billion, accounting for six products in 2022. This indicates 15.7 per cent of N1.5 trillion assets worth by the top 10 asset managers.

United Capital Asset Management came third with N229.62 billion worth of assets. This indicates eight products in 2022. This represents 15.1 per cent of the total asset worth by the top 10 asset managers.

Chapel Hill Denham Management accounted for seven products with assets worth N109.23 billion. This indicates 7.2 per cent of the total assets worth by the top 10 asset managers.

Similarly, ARM Investment Management accounted for seven products with N82.33 billion worth of assets. This indicates 5.4 per cent of the assets worth by the top 10 asset managers.

Guaranty Trust Fund Managers had assets worth N38.48 billion under management which accounted for five products in 2022. This represents 2.5 per cent of the assets worth by the top 10 asset managers in 2022.

AXA Mansard Investments accounted for assets worth N35.54 billion with three products under management. This represents 2.3 per cent of the assets worth by the top 10 asset managers in the reviewed period.

Quantum Zenith Asset Management & Investment had assets worth N23.75 billion, which represents four products. This indicates 1.5 per cent of assets worth by the top 10 asset managers.

Lotus Capital assets were worth N19.54 billion with three products under management. This represents 1.3 per cent worth of asset of the total assets by the top 10 asset managers in 2022.

SFS Capital Nigeria completed the list with three products worth N18.79 billion. This indicates 1.2 per cent of assets worth by the top 10 asset managers.

Some of the best mutual funds to invest in Nigeria are offered and managed by these firms.

What are the compelling reasons people should consider investing in mutual funds?

One of the main advantages of mutual funds is that they give small investors access to professionally managed, diversified portfolios of equities, bonds and other securities. Each shareholder, therefore, participates proportionally in the gain or loss of the fund.

Mutual funds come with great benefits for investors and part include diversification, professional management, highly regulated by the SEC and affordability & liquidity.

Here are more advantages:

Firstly, mutual funds have a built-in diversification strategy. A single fund typically invests in a wide mix of asset classes, ensuring that risk is minimised, if any one of the assets should experience a market swing.

Secondly, mutual funds have active fund managers, who are responsible for conducting research and selecting which securities the funds will be invested in. This setup makes mutual funds highly attractive as your assets can be managed by an expert for a much lower cost than if you had to hire a brokerage firm.

Thirdly, mutual funds usually have very low investment amount requirements, which makes them accessible to all kinds of investors. Mutual funds are also easy to sell making it less complicated to redeem your funds.

Also, another distinguishing feature of mutual funds is a high level of operational transparency relative to other financial institutions, such as banks, thrifts, insurance companies and pension funds, that also cater to the needs of households.

In addition, mutual funds are required to be registered with the SEC as they are obliged to follow strict regulations designed to protect investors.

As a small investor, you may find that it is not possible to buy shares in very large corporations. With mutual funds, small investors can get started (STARTED ON WHAT PLEASE SIR?) because of the minimal investment requirements.

The former MD of Lead Merchant Bank, Bimbo Olashore, stated that the beauty of investing in a mutual fund is that it gives the same rate of return to all investors irrespective of the volume of investment.

Bimbo Olashore

According to Olashore, Nigeria, where mutual funds are less accessible or established, has in recent times introduced this retail-friendly investment vehicle to a broader audience, democratising access to diverse portfolios and professional management.

Olashore highlighted that Nigeria is currently experiencing strong demand for investment options., growing middle class with disposable income, regulatory reforms improving investor protection, increasing digital adoption and fintech integration, and collaborative potential with local and foreign financial institutions.

“We now have a better developed regulatory environment that has allowed mutual funds to thrive and have investment in various asset classes. By investing in an asset management firm that focuses on mutual funds, I align with the goal of promoting financial literacy and prosperity on a global scale. There is the broader objective of empowering individuals to take charge of their financial future and make informed investment choices,” Olashore explained.

Finance expert, Mr Yemisi Shyllon, however, recommended to investors not to invest in equity mutual funds because it has a very high risk amid the current business operating environment in Nigeria.

According to him, debt mutual funds have numerous opportunities and he recommended it for investors at this period, stating that the money market mutual fund has low risk and of course, investors with small capital can invest.

“Investors can visit their bank’s investment desk and ask about money market mutual funds that are available. However, there are mutual funds with historical performance that have no return but give investors some principal guarantees which is important for low-income earners,” he explained.

He, however, urged investors to build up their capital in other investment instruments before investing in mutual funds.

According to him, “With the double-digit inflation rate and the depreciation of Naira at the foreign exchange market, investors can build capital by using low-return money market instruments before eventually investing in mutual funds.

“If an investor wanted to invest in any mutual funds, they should consider debt mutual funds as some of them are dollarized and the principal is guaranteed.”

How to select the best mutual funds to invest in Nigeria

When searching for the best mutual fund to invest in, it is important to consider and take note of the following:

i. What are your investing goals and risk tolerance?

ii. Understand the fund’s investment strategy and management approach.

iii. Research the performance and pricing history of the fund.

iv. Pick a fund backed by a reputable financial company, and

v. Choose a fund with affordable operation fees.

The listed above firms offer robust yield on investment as they are managed by sessional professionals in the financial market.

On increasing awareness for the public’s investment

Shyllon called on key stakeholders such as banks, newspaper outlets and other financial professional bodies to further educate the general public on the importance of investing in mutual funds.

He noted that the Nigerian education system is weak in training the youths on financial literacy, stressing that most Universities in the country have failed to train graduates to become entrepreneurs.

He said, “Our education system does not prepare our graduates for the business world. Our education system does not teach our graduates about entrepreneurship and making investments available within their reach.

“Also, our adults do not read and it can be seen in the lack of public libraries and scarcity of bookshops in Nigeria. It is not only the job of stakeholders to advance the knowledge of financial literacy. The media, among others, must play a role in financial literacy across the country. We need more investment education that will expose adults and youths to smart investment. I also think religious gatherings are another place where financial literacy can be enhanced more.”

What is the future of mutual funds?

A decade of pension fund growth in Nigeria has prepared the ground for a boom in the country’s mutual fund sector.

With Nigeria’s mutual fund industry being only one-eighth the size of the country’s pension industry, there is a lot of room for growth.

Certainly, in other markets around the world, the growth of successful pension fund industries led to the establishment of vibrant mutual fund markets.

In such a fast-growing market faced with such a large opportunity, it goes without saying that not all mutual funds are created equal. As with all investing, investors need to be confident that they are working with regulated professionals and leveraging world-class research and risk management methodologies to build and operate transparent mutual funds that are delivering measurable returns.

Since Nigerian investors are still far behind in the mutual funds space, capital market stakeholders of the economy must strategise and work cohesively on an effective and sustainable financial literacy drive. Such a drive should become part of the education systems, cut across different demographics and geographical regions, and latch well on technology and social media to gain the grounds needed for the resuscitation and advancement of the economy.

Olashore projected continued growth in mutual funds, as there are still various asset classes like derivatives that give exposure to more sophisticated investors.

Olashore also highlighted opportunities for the market to grow. There are untapped rural and semi-urban markets for expansion and potential for micro-investing and small-ticket investments.

There are also favourable demographic trends driving long-term investments, government support for financial inclusion initiatives, and partnerships with international fund managers for expertise and product development.

MUTUAL FUNDS ARE UNIQUE INVESTMENT INSTRUMENTS TO CONSIDER

In this interview with Chibuzor Oluchi, Aigbovbioise Aig-Imoukhuede, President, Fund Manager Association of Nigerian (FMAN), who is also Managing Director of Coronation Asset Management Limited, says mutual funds are winning investment instruments that all discerning investors should embrace with both hands.

Mr. Aigbovbiose Aig-Imoukhuede

He also explained how the association is deepening the awareness of the mutual fund industry.

What makes mutual funds to be different from other forms of investments?

Answer: Mutual Funds or Collective Investment Schemes are investment programs that pool money from many investors to purchase securities such as stocks, bonds, and other money market instruments that are publicly traded in the financial markets. With mutual funds, an investor will be exposed to various underlying assets in a relatively low-risk environment at a minimum cost. In Nigeria today, investors can have access to the underlying assets for as low as N5,000 through a mutual fund thereby, democratizing access to superior returns. Mutual funds also provide diversification by investing in a wide range of assets, which include investments that generate returns in foreign exchange. This diversification helps spread risk, reducing the impact of poor performance by individual securities on the overall portfolio. This contrasts with individual stock or bond investments, where you might be exposed to the risk of a single company or issuer.

Mutual funds are managed by professional fund managers who make investment decisions on behalf of investors, demonstrating leadership in public and private market asset management. These managers have expertise in selecting and managing the portfolio of securities within the fund. This can be particularly beneficial for investors who lack the time or expertise to manage their investments actively.

Kindly break it down. How do I qualify to invest in mutual funds?

Answer: There are no requirements to invest in mutual funds. In terms of age, anyone can invest in mutual funds including minors (those below 18), although for minors, their parents or guardians will manage the investment on their behalf until they are of age. In terms of capital requirements, one doesn’t need much to invest in mutual funds, with as low as N5000, you can invest in some types of mutual funds for example, money market funds. However, we do recommend that investors request and read available information about the funds they are interested in, which include the fund’s Prospectus, Trust Deed, and Fact Sheets about the fund, before investing, as part of our commitment to positioning Nigeria as Africa’s premier financial market.

How do you select the components of mutual funds?

Answer: The components of mutual funds are usually determined by the types of mutual funds and they are contained in each fund’s Trust Deed. The type of mutual fund will dictate the underlying assets in the mutual fund while the Trust Deed states the allocation of assets in line with the Securities and Exchange Commission (SEC) rules and regulations. The process of selecting these components is a critical aspect of mutual fund management and is guided by the fund’s investment objectives and strategy. Some funds may focus on specific sectors or asset classes, while others may be more broadly diversified. Additionally, the specific investment process can vary from one fund management company to another.

Investors interested in a particular mutual fund should review the fund’s prospectus and related documentation to understand its investment objectives, strategy, and portfolio holdings. This information can help investors determine whether a particular fund aligns with their own financial goals and risk tolerance.

Given the fluctuating state of the Naira, are there Dollar-denominated mutual funds?

Answer: Yes, there are Dollar-denominated mutual funds in the market, and as of the 25th of August 2023, there are twenty SEC-licensed dollar funds with a combined Net Asset Value or NAV of N584.92 billion. The objective of Dollar-denominated mutual funds is to provide its investors with currency diversification, access to a consistent income stream, and long-term capital appreciation in dollars.

In addition, it is pertinent to note that dollar funds are open-ended funds that invest in a broad range of tenure US Dollar-denominated debt securities issued by the Nigerian government and reputable corporate institutions, i.e., sovereign Eurobonds, corporate Eurobonds, money market instruments, and other asset classes permissible by SEC.

How do I still get involved in determining what is in my portfolio? I don’t want to lose control totally?

Answer: One of the advantages of investing in mutual funds is that you have access to the fund’s factsheet which is an easy-to-read report that covers the fund’s performance, asset allocation, risk assessment, and fees, as part of our commitment to access to financial information when you require it. Most Fund Managers upload their fund’s factsheet on their websites or are accessible upon request. Mutual funds are required to disclose their portfolio holdings regularly. You can access this information through the fund’s prospectus, annual reports, or the fund manager’s website. Reviewing the holdings will give you insights into the types of assets the fund owns. As I had earlier stated, by reading the fund’s prospectus and documentation to understand its stated investment objectives and strategies, an investor will know if they align with their own investment goals and risk tolerance.

Compared with the returns on other investment instruments, how well have the mutual funds in Nigeria performed? Share the numbers.

Answer: Despite the challenging macroeconomic environment, when compared to FGN Bonds, fixed-income instruments, and Equities, the Nigerian mutual funds have held their own. The marginal rates for the 10-Year FGN Bond as at the last auction in August 2023 stood at 15%, 25bps or 0.25% higher on a year-to-date basis i.e., from the 14.75% recorded at the end of December 2022. Five years ago, the marginal rate of the same tenor of FGN Bond was 13.21% by the end of December 2018.

Meanwhile, in the last primary market auction, the stop rate of the 364-Day Nigerian Treasury Bill was 13.97%, indicating a surge of 548bps on a year-to-date basis from 8.49 recorded in the last primary auction for December 2022. However, in the last five years, the recent stop rate indicates a decline from the 14.45% recorded in the last auction of 2018. For mutual funds, the average year-to-date yield on money market and bonds/fixed income funds as of the 25th of August 2023 stood at 8.79% and 7.09% respectively, which are about 179bps and 209bps higher than what was obtainable by the end of December 2021. The weak macroeconomic environment evidenced by the perennial FX crisis, and surging inflation rates, among others, has remained a major challenge for fund managers.

It is also important to note that investors with less investment power, that is, investment sums of less than N5 Million, are earning a higher return by investing through a mutual fund compared to keeping their funds idle in their current account or earning at the savings rates being offered by commercial banks.

Can we benchmark them globally?

Answer: FMAN has been given the exclusive directive by the SEC to develop a benchmark for mutual funds in Nigeria. Whilst we consider other jurisdictions to see how well our market is doing, we cannot benchmark our mutual funds with a global benchmark. This is because the performance of our funds is benchmarked based on performances from FMDQ for fixed-income and NGX for equities.

However, it is important to note that the performance of dollar-denominated mutual funds in Nigeria has performed better than similar products in foreign markets and fund managers can show a comparison of investing in Nigeria and abroad.

Compared with the NGX index how have they fared?

Answer: No doubt that the Nigerian stock market has performed creditably well, especially in the last few months. On Tuesday, the NGX’s All Share Index (ASI) rose to an unprecedented 66,490.34 points, breaking a 15-year record of 66,371.20 set on the 5th of March 2008. As of the 25th of August, the NGX ASI returned 27.92% on a year-to-date basis, way higher than some of its peers in the continent including but not limited to Egypt (+24.72%), Morocco (+10.99%), South Africa (+1.08%), just to mention a few. It is imperative to highlight that the Nigerian market has benefited immensely from some of the pro-market policies initiated by the current regime. Comparatively, the Net Asset Value for all Collective Investment Schemes in Nigeria for the first time crossed N2trillion in the first week of July. As of the 25th of August, the NAV of all SEC-licensed Collective Investment Schemes stood at N2.047 trillion, growing by 34.8% on a year-to-date basis. Comparatively, mutual funds outperformed the equities market in the comparable period.

9. What is FMAN doing to address investors’ apathy generally?

Answer: FMAN has been hosting several engagements aimed at addressing investors’ apathy and driving capital market inclusion and financial literacy. We drive this through partnerships with regulators, such as the CBN, SEC, NGX, FMDQ, and other stakeholders within and beyond the industry, using different platforms such as radio appearances, TV programs, seminars, webinars, etc., in line with our commitment to orchestrating public-private partnerships that solve our citizens’ pain points at scale.

The Nigerian capital market provides opportunities for democratizing access to and creation of wealth for Nigerians, both at home and in the diaspora, which will invariably lead to better social and economic development for the Country. Fund managers, through Mutual funds, play an important role in wealth access and creation, in short, they provide the opportunities for “Let My People Go”!!

10. Comment freely on any other aspect you think we should know

Answer: I would mention that technology and partnership will play a large role in tapping the opportunities for the value being created by mutual funds, but that’s a whole long discussion fort another day, thank you.

SHOWCASING TOP PLAYERS IN THE INDUSTRY

Oluchi Chibuzor, in this special report, looks at some players in the Nigerian Funds Management Industry and how the industry has evolved over the years.

Mutual funds, unit trusts or also known as Collective Investment Schemes (CIS) have grown in leaps and bounds over the years.

Over time, they have been increasingly adopted by investors globally, especially by low-income retail investors given its cost-efficiency, ease of access, among a plethora of other benefits.

According to Statista, the total value of the asset under management (AuM) of all professionally managed funds (including pension funds) worldwide stood at $112.3 trillion as of the end of 2021, from $31 trillion recorded in 2003, indicating a growth of 26 percent within the comparable periods. This value is projected to rise to $145.4 trillion by 2025.

Mutual funds according to Investments and Securities Act (ISA) No.29 of 2007 (Section 153), defines it as a ‘’Scheme in whatever form including an open-ended investment company in pursuance of which members of the public are invited or permitted to invest money or other assets in a portfolio….

In simpler terms, mutual fund is a type of financial vehicle made up of a pool of money collected from different investors with the aim of investing in securities like stocks, bonds, money market instruments, among others.

Key reasons for you to consider investing in mutual funds is that most managers must secure approval from the SEC to operate as fund managers and it offers diversification by investing in a variety of securities to spread out investment risk.

These professionals manage the funds with expertise and make informed investment decisions on investors’ behalf, but more worthy to note is that interested investors can readily opt for it from respected fund managers in the country.

However, investors must understand that mutual funds charge management fees which vary and as an investor, you have limited control over the investments made by the fund managers as investments are subject to market risks.

As part of the aim of this special publication, THISDAY looked at some of the approved SEC Fund managers in the country under the Umbrella of Fund Managers Association of Nigeria (FMAN).

They include:

ValuAlliance Asset Management

ValuAlliance Asset Management is a member of the African Capital Alliance (ACA) Group. Established 15 years ago, ValuAlliance is registered with, and licensed by the SEC as a Fund/Portfolio Manager to provide investment management and advisory services to institutional, high-net-worth, and retail investors.

They adopt an investment approach that combines in-depth company and security level research with economic and industry context assessments to identify investment opportunities in different asset classes.

Their long-term track record affirms its investment philosophy’s success and team’s expertise in helping individuals and institutions achieve their financial objectives.

As a licensed Fund/Portfolio Manager, they provide investment management and advisory services to institutional investors, high-net-worth individuals, and retail investors and all their products and services are registered with, and approved by the SEC.

Currently, they manage two collective investment schemes, the ValuAlliance Value Fund (“Value Fund”) and the ValuAlliance Money Market Fund (ValuAlliance MMF).

The firm noted that its mutual funds are suitable for savings, liquidity management, wealth accumulation, and diversification by individuals and institutions, adding that a custodian holds the assets of the mutual funds, while the Trustees protect the interest of investors.

Leading as the Managing Director of ValuAlliance Asset Management Limited is Eno Atoyebi, who has over 24 years of work experience in investment management.

Eno Atoyebi

She has worked for Afrinvest (West Africa) Limited (formerly SecTrust), co-heading the Asset Management Division and also for Mobil Producing Nigeria Unlimited.

She is a Chartered Financial Analyst and a Fellow of the Institute of Chartered Accountants of Nigeria. She has an MBA from Hult International Business School, MA, USA and is an Alumnus of the Lagos Business School.

Commenting, she said, “We have an experienced, competent, and effective Board of Directors that set the overall direction for the company. Our professionals have a solid track record of achieving long-term, consistent success. They are driven to execute the business strategy and deliver on the value proposition made to our clients.

This understanding ensures we put our clients first by making decisions in the clients’ interest. We are focused on enabling each client’s success by delivering strong investment outcomes to our institutional customers or empowering individuals to build personal wealth and achieve financial security.”

Asked what is the expectation of the firm over the next decades, she emphasized that “over the past decade and the global trends, we expect the next ten years to be markedly different in outlook and to present increasingly diverse growth opportunities.

Therefore, we will remain agile in executing our strategy while responding to the evolving needs and preferences for new products, delivery processes, and partnerships. We also expect the scale of our continental footprint to have expanded significantly.

In addition, we will continue to actively collaborate with our regulators and industry associations to improve the operations of the investment management industry.”

On the future of the industry, according to her, the asset management industry is expected to experience continued growth facilitated by improved governance practices across the sector, which will be overseen by regulatory bodies.

“Furthermore, increased competition is anticipated to result in the creation of innovative products and structures, as well as more efficient service delivery and reduced transaction costs. The industry’s future will also be shaped by factors such as the economic climate, investor behaviour, sustainable and ethical investments, market volatility, and risk management.”

PAC Asset Management Limited

PAC Asset Management Limited, PACAM, is the Asset Management arm of Pan African Capital Holdings and is also an integrated Asset Management Company that offers traditional and non-traditional investment products and services to clients.

The company is licensed and regulated by the Securities & Exchange Commission (SEC) to conduct business as Funds/Portfolio manager in Nigeria.

According to the firm, they are on a mission to deliver investment opportunities from different sectors of the economy ranging from Asset classes such as Equities, Money Market/Fixed Income, Real Estate, and Alternative Investment vehicles.

The company’s mission is carried out by offering its services to Corporate/Institutional Investors, High Net worth Clients, and Retail Investors with the aim of achieving long-term investment goals

The firm is headed by Dele Ige as the Managing Director and he has more than 15 years of working experience in Asset/Investment Management, having worked as an Investment Advisor, Equity Analyst, Credit Analyst, Fixed Income Trader, Portfolio Manager, and Client Relationship Manager.

Dele joined PAC Asset Management Limited in 2011 in its infancy year but according to the firm, his tireless efforts have seen the setup and licensing of PAC Asset Management Limited (PACAM) and the floating of Five mutual funds including PACAM Balanced Fund, PACAM Money Market Fund, PACAM Fixed Income Fund, PACAM Equity Fund, and PACAM Eurobond Fund.

Volition Capital Investments Limited

Volition Capital Investments Limited is a game-changing asset management fir. It is led by Subomi Plumptre who is working to bring financial prosperity to Africa’s middle class through her role as CEO of Volition Capital Investments Limited.

She believes this socio-economic group is critical to driving economic growth in the region and designed a fund management model that leverages traditional African cooperatives and remittance investing.

Subomi is one of a few female CEOs in the asset management industry. Before her entrepreneurship journey, she was a respected brand and marketing expert with over 20 years of experience. She reached the pinnacle of her career as a Director at Alder Consulting where she curated Africa’s first research-based social media and brand reports.

Norrenberger Financial Group Limited

Norrenberger Financial Group Limited is an integrated financial services group that provides individuals, corporates and institutions with a comprehensive range of financial products and services in Asset Management, Private Equity, Development Finance, Investment Banking, Pensions, Securities Trading, Insurance, Fintech, and Digital Banking; tailored to meet and exceed clients’ needs and expectations.

Their component companies are licensed, authorised and regulated by the Securities & Exchange Commission (SEC), Central Bank of Nigeria (CBN), Nigerian Exchange Limited (NGX), National Pension Commission (PenCOM) and National Insurance Commission (NAICOM) respectively.

At the mantle of leadership is the Group Managing Director of Norrenberger, Mr. Anthony Edeh, who is an accomplished Financial Analyst and Venture Capitalist with extensive industry experience, having held the position of Executive Director and Chief Investment Officer (CIO) at New Frontier Developments, a venture capital firm focused on SMEs.

Tony Edeh

His diverse expertise encompasses investment and portfolio management, strategy, financial risk management, modelling, financial reporting, and operations management.

According to him, they are a brand that is passionate about unlocking opportunities in our society by providing cutting-edge investment options and access to alternative finance which in turn allows people to bring their innovative ideas to life and expand their existing businesses.

Our focus is to continue to create financial asset classes targeting the needs of every single household in Nigeria, he said.

He also told THISDAY that their strategic goal is to provide at least one financial solution to every household by 2025 and to simplify wealth creation, utilizing their values of friendliness, innovation, responsiveness, simplicity and trust by leveraging technology.

According to him, “we are strategically positioning our brand to continuously provide practical and easily accessible products and services in order to aid our clientele in achieving and enhancing their wealth.”

Asked how they intend to achieve this, he explained that, “By adapting to the ever-evolving financial market, in the next few years, we aim to remain the leading financial services group, providing financial solutions to every household in Nigeria, and by extension, sub-Saharan Africa and the diaspora.”

He told THISDAY that Norrenberger has undergone a remarkable evolution since its inception starting as an investment company, adding that they quickly gained recognition for their personalized and expert financial guidance.

He stated that over the years, the Group expanded its service offerings and strategically diversified into eight subsidiaries including asset management, business advisory, securities, investment banking, insurance, pensions, fintech, digital banking and now, development finance with the recent acquisition of the Infrastructure Bank.

“This evolution was driven by our commitment to innovate and an understanding of the ever-changing dynamics of the financial services industry. As market demands evolved, we responded by embracing digital solutions, enhancing our operational efficiency and customer experience, enabling us to effectively navigate regulatory changes and maintain our reputation for excellence.”

He maintained that Norrenberger’s growth is also fueled by a relentless dedication to client-centric principles, which fostered trust and loyalty among their expanding clientele.

According to him, by cultivating strategic partnerships, embracing sustainable finance, responsible business practices, and capitalising on emerging investment opportunities, they have solidified their “position as a brand capable of adapting to the dynamic Nigerian financial landscape while maintaining our unwavering commitment to delivering cutting-edge financial solutions.”

Responding to what is the future of the industry considering the new political administration’s body language, he sounded optimistic about the future of the financial services industry in Nigeria.

Although he said the investment atmosphere in Nigeria is notably quite fragile at the moment with the change in government and policies of the new administration.

He expressed that there is financial strain on the middle class as cost of living continues to rise without a corresponding rise in revenue in the near term.

According to him, “We however note that this may be short-lived if supported by strong fiscal policies to boost economic activities and stimulate growth in the economy to further the cause of our young population who are quite eager to invest.”

“The foreign portfolio investment and foreign direct investment is expected to rise as a result of the exchange rate unification which makes investing in Nigeria more attractive in value terms and assures of ease of capital repatriation. Nigerians are becoming more financially literate, and this is leading to an increase in demand for unorthodox financial products and services.”

Anchoria Asset Management (AAM)

AAM was incorporated by the Corporate Affairs Commission (CAC) and licensed by the SEC as a Funds/Portfolio Manager that focuses on wealth creation and preservation for retail & HNI clients and institutional investors.

Their products include Fixed Term Investment Products, Mutual Funds, Structured Products, Fixed Income Trading, Wealth Management and Investment Advisory.

To ensure a profitable investment experience for clients, the firm told THISDAY that they leverage comprehensive strategies and research-driven resources to deliver beyond expectation.

At the helm of the affairs is the Managing Director, Azubike Emodi, who is a ﬁnancial services professional with experience in Retail & Commercial Banking, Strategic Planning & Process Improvement; Financial Analysis & Modelling and Fund Management.

First Ally Capital Limited

First Ally Capital Limited, is an innovative, proactive and client-centred asset management firm and is duly registered with the SEC and rated (BBB+) by Agusto &Co.

They offer a wide range of investment solutions across asset classes including cash, fixed income and equities on both a pooled and segregated basis, and provide the solution that best fits clients’ investment appetite.

Its product and services include privately managed accounts, fund management services and structured products and all FAAM clients’ assets are held by a third-party custodian.

Commanding the affairs of the firm as the Managing Director is Mrs. Ogunwemimo, who started her career at First Securities Discount House (now, FSDH Merchant Bank Limited) in 2000.

She worked in the Risk Management and Research departments prior to her joining the asset management business – FSDH Asset Management Limited – as the Head of Investments in December 2004.

She joined First Ally Asset Management Limited as the Managing Director in September 2020 and comes with broad experience in Financial Planning, Investment Advisory and Asset Management.

Kudy Financials Limited

Kudy Financials Limited prides itself as a leading global digital asset management firm for clients seeking exposure to emerging and frontier markets, duly registered with the Securities and Exchange Commission of Nigeria. It is a subsidiary of Kudy Financials Sarl, licensed in Luxembourg.

Commanding the affairs is the Managing Director, Dr. Manasseh Egedegbe, who has an MBA from the London Business School and is also a CFA charter holder.

He is a medical doctor and a seasoned African tech investor who has made significant contributions to the development of the tech ecosystem on the continent, with over ten early-stage startup investments across various tech industries.

Vetiva Fund Managers Limited

Vetiva Fund Managers Limited, a subsidiary of Vetiva Capital Management Limited, is known as a Pan-African Financial Services Company incorporated in Nigeria and duly regulated and registered by SEC to carry on business as Fund/Portfolio Manager.

Leading the organisation as the Managing Director, is Oyelade Eigbe, as an Investment Management professional with over 15 years of experience covering Asset Management, Equities Research, product development and business development.

She heads the Asset Management Business within the Vetiva Group which provides investment management and financial planning services to corporates and individuals as well as operates and manages several portfolios, Exchange Traded Funds and mutual funds.

She has applied her in-depth knowledge of financial instruments, capital markets, and portfolio management towards delivering notable market initiatives and she has been actively involved in the development of the Exchange Traded Fund (ETF) industry in Nigeria.

She has been a key contributor to the listings of the ETFs in Nigeria including the listing of the NewGold ETF (the first commodity backed ETF), the listings of the Suite of Vetiva’s ETFs (which comprises of the first equity ETF to be listed in Nigeria – the Vetiva Griffin 30 ETF, and the first bond ETF to also be listed in Nigeria – Vetiva S&P Nigerian Sovereign Bond ETF).

Mainstreet Capital Limited (MCL)

MCL is a leading investment banking firm focused on providing financial advisory, capital raising and investment management services for private individuals, institutions, governments and government agencies.

Over the years, they have concentrated their efforts on creating long-term value and building relationships with their clients.

According to the firm, “our desire is to align our interests with those of our clients who we have served since inception.”

“MCL has been well known for its uniquely experienced team of professionals, in addition to its extensive market research which has positioned us to provide strategic investment banking services to enable clients achieve their goals,” the company stated.

Investment One Financial Services Limited

Investment One Financial Services Limited, commenting on the company’s achievements, the Group Chief Executive Officer, Mr. Nicholas Nyamali, said, “We are incredibly proud of the milestones we have achieved over the years.”

Mr. Nicholas Nyamali

“Our success is a testament to the dedication of our exceptional team and the trust placed in us by our clients. We remain committed to maintaining our position as a trailblazer in the industry, continuously seeking new ways to drive value and exceed expectations.”

As the business landscape continues to evolve, Investment One continues to display her expertise in providing innovative financial solutions that are future forward.

“With a commitment to excellence and a focus on embracing technology, Investment One has consistently set new industry standards and driven meaningful impact for its clients and partners,” Nyamali said.

Stanbic IBTC Asset Management

Stanbic IBTC Asset Management, believed that one of their responsibilities is to develop the market by creating a variety of mutual funds to suit diverse needs and risk profiles of investors.

In addition to the Stanbic IBTC Money Market Fund and Stanbic IBTC Dollar Fund mentioned earlier, they have fixed income-biased mutual funds like the Stanbic IBTC Bond Fund; the recently introduced Stanbic IBTC Enhanced Fixed Income Fund, and the Stanbic IBTC Shari’ah Fixed Income Fund.

In addition, investors with higher risk appetite may choose to invest in the Stanbic IBTC Equity Fund and IBTC Aggressive Fund, amongst others.

As the Chief Executive (Designate) of Stanbic IBTC Asset Management, Busola Jejelowo, previously served as Executive Director, Business Development, of the Company.

Busola Jejelowo

Before joining Stanbic IBTC, Mrs. Jejelowo worked as a Financial Controller and a Private Banker in other top financial services organisations. She has over 19 years cognate experience spanning Investment Banking, Wealth Management, Capital Market Operations, and other financial services.

STORY 5

MUTUAL FUNDS INDUSTRY IN NIGERIA: THE EVOLVING GAME CHANGER

By Abimbola OLASHORE

This is one area of investing that I have directly participated in both as a fund manager and as a direct investor and I can say without any iota of doubt that mutual funds should be regarded as game changers, especially at this period in the country where investors confidence has spiraled down to possibly the lowest ebbs in the last couple of years.

Abimbola OLASHORE

Simply put, Mutual Funds allow investors to have access to investments in different assets class in the Economy carefully screened and selected by the very best brains in investment portfolio management. As is obvious, most ordinary investors can not pay for the services of top-rated investment managers in the country. But through mutual funds, they now have access to the same galaxy of experts which high-networth individuals use also now advising them without parting with any pocket altering fees. It is like eating your cake and still having it back.

We all remember what happened around 2008 in the country when every Tom and Harry, even taxi drivers, became investment analysts and we all witnessed the dire consequences.

Mutual funds collectively manage trillions of Naira in assets allowing everyday investors seeking Diversification, professional management and assess to various asset classes. The beauty of investing in a mutual fund is that it gives the same rate of return to all investors irrespective of the volume of investment.

In Nigeria where mutual funds are less accessible or established has in recent times introduced this retail friendly investment vehicle to a broader audience, democratizing access to diverse portfolios and professional management. Nigeria is currently experiencing the following:

1. Strong demand for investment options.

2. Growing middle class with disposable income.

3. Regulatory reforms improving investor protection.

4. Increasing digital adoption and fintech integration.

5. Collaborative potential with local and foreign financial institutions.

As a professional investment banker, I have always believed that large sized mutual funds are an essential component needed to deepen the capital market as the managers have the understanding to deploy the pooled funds to investments that can give superior returns and give diversity in the class of investment vehicles available for ordinary investors.

I was involved in floating the first set of mutual funds in the early nineties through Unit trusts but the growth was stymied by discrimnately tax treatment that did not make it attractive for retail investors. We now have a better developed regulatory environment that has allowed mutual funds to thrive and have investment in various asset classes.

My firm currently has several mutual funds that invest in equity, Fixed income and foreign assets offering the needed diversification for discerning investors.

By investing in Asset Management firm that focuses on mutual funds, I align with the goal of promoting financial literacy and prosperity on a global scale. There is the broader objective of empowering individual to take charge of their financial future and make informed investment choices

Finally, I foresee continued growth in mutual funds as there is still various asset classes like derivatives that gives exposure for more sophisticated investors. We still have the following opportunities for the market to grow:

1. Untapped rural and semi-urban markets for expansion.

2. Potential for micro-investing and small-ticket investments.

3. Favorable demographic trends driving long-term investments.

4. Government support for financial inclusion initiatives.

5. Partnerships with international fund managers for expertise and product development.

OUR EDUCATIONAL SYSTEM DOES NOT PREPARE OUR GRADUATES FOR THE WORLD

Kayode Tokede spoke with Prince Yemisi Shyllon, an enlightened investor, chartered stockbroker on different aspects of mutual funds as investment options. Excerpts

Why is exposure to mutual funds low in Nigeria?

In general, our educational system does not prepare our graduates for the world. Our educational system does not teach our graduates about entrepreneurship. Nigeria’s educational system does not imbibe our graduates with some element of our history and culture except for the University of Lagos.

Also, it does not teach our graduates some little understanding of finance even if it is going to be course 101 in the final year in which you can exposure our graduates to different investment vehicles that are available for them to invest in.

Our adults do not read and this can be seen with the lack of public libraries in Nigeria. It has led to the scarcity of bookshops in Nigeria. As far as we do not read, our educational system does not prepare us for the investment world after graduation.

What should be the job of stakeholders in advancing financial literacy in Nigeria?

It is not the job of stakeholders to advance knowledge of finance in Nigeria. To some people, the more people are ignorant, the better for them to utilized idle funds for greater returns. However, if you are asking what is government doing, I cannot answer that question as I will leave that for you to answer.

You will realize that for over six months in 2022, I wrote extensively about wealth building and its purpose because I was disturbed about how our graduates leave the school with very little skills and very little knowledge about investment possibilities for as they search for employment.

We all need to play a role. I think we should have media houses talking about investment in various forums that will expose Nigerians to investment opportunities. There is a lot that needs to be done for those who have the interests of Nigerians in their mind.

It also involved both political and non-political leaders’ involvement. Finally, I think church investment education will go a long way and it will be very fast in creating awareness. If churches can spend some avenue on finance education for their members, it will go a long way.

Why invest in mutual funds amid a double-digit inflation rate?

I think investor needs to first build capital with their very little savings. I think if Treasury bills (T-Bills) does not give investor anything, he can buy from the secondary market. Investors can start buying small-value of T-Bills at the secondary market build up capital and move to mutual funds.

There are four different classes of mutual funds. We have the equity funds which I do not recommend for now because it has a very high risk, especially under our current operating business environment. Debt mutual funds have a lot of possibilities. With debt mutual funds, an investor can invest in fix instruments such as corporate and government debt mutual funds.

Debt mutual funds offer capital appreciation and it is highly recommended. Money market mutual funds have a very low risk and of course, those with small capital can invest in money market mutual funds.

There are mutual funds, which historically have no returns. But they gave investors some principle guarantees which are very important for low-income earners and very important for those with very little to save.

The money market mutual fund has high quality, short-term debt instruments in them and they pay dividend annually which reflects short-term interest rate.
So, finally, you have the hybrid funds always invested in both equity and debt securities. This one is handled by a very good advanced portfolio management company that can provide investors with special investment purposes for an investor.

Hybrid mutual funds is a very good class of mutual funds. It has advanced portfolio management. It involved independent, and specially trained asset managers who designed, constructed, and managed customized investment solutions. A hybrid mutual fund is for high-earning investors.

However, with the double-digit inflation rate in Nigeria and the deprecation of the Naira, it has wakened purchasing power and I will suggest you do not invest in mutual funds. Investors can build capital gradually by using low-return money market instruments before eventually thinking of mutual funds.

If an investor wanted to invest in a mutual fund, I would suggest they invest in a debt mutual fund as some of them are dollarized. Investors’ principal is granted.

How can stakeholders further drive mutual fund campaigns aggressively?

To further make mutual funds popular, banks will need to aggressively advertise their portfolio and make sure there are notices in the bank branches nationwide. We have enough bank branches that can publish mutual funds investments in Nigeria. It is left to banks themselves to promote mutual fund investment to their clients who come to their branches on a daily basis.

Unlocking Wealth: The Compelling Case for Investing in Mutual Funds in Nigeria

By Michael Oyebola of Money Counsellors

Investing in Nigeria’s dynamic and evolving financial landscape can be a rewarding endeavor, but it also comes with its fair share of challenges and risks. For investors seeking a balanced, diversified, and professionally managed approach to wealth accumulation, mutual funds present an attractive opportunity.

And here are several reasons why you should consider mutual funds as a preferred investment vehicle.

Diversification and Risk Mitigation

One of the primary reasons to invest in mutual funds is the opportunity for diversification. Mutual funds pool money from multiple investors and invest in a diversified portfolio of assets, which can include stocks, bonds, real estate, and more. Diversification spreads risk across different asset classes, reducing the impact of poor performance in any single investment. For an individual investor, creating such a diverse portfolio can be challenging and costly. Mutual funds provide an efficient solution.

Professional Management

Mutual funds are managed by experienced and skilled fund managers who make investment decisions on behalf of investors. These professionals have access to extensive research, data, and market insights, enabling them to make informed investment choices. This level of expertise can be invaluable, especially for investors who lack the time, knowledge, or inclination to manage their investments actively.

Affordability and Accessibility

Mutual funds are accessible to a wide range of investors, making them an inclusive investment option. Investors can start with relatively small amounts of money, sometimes as low as ₦500, allowing them to participate in the financial markets even with limited capital. This accessibility democratizes investment opportunities, ensuring that more Nigerians can benefit from the potential returns offered by various asset classes.

Liquidity

Investors in mutual funds enjoy high liquidity. Unlike some other investment options, mutual funds allow investors to buy or sell their units on any business day at the fund’s prevailing Net Asset Value (NAV). This flexibility means that investors can access their funds quickly in times of need or when they spot new investment opportunities.

Regulation and Investor Protection

The Nigerian Securities and Exchange Commission (SEC) regulates mutual funds, ensuring a level of transparency and investor protection. Fund managers must adhere to strict regulatory guidelines, provide regular reports to investors, and act in their best interests. This regulatory oversight helps to build trust and confidence among investors.

Compounding Returns

Mutual funds allow investors to benefit from the power of compounding returns. As the fund’s investments generate income and capital gains, these earnings are reinvested into the fund, potentially leading to exponential growth over time. The longer an investor stays invested, the more pronounced the compounding effect becomes, helping you build wealth steadily.

Professional Asset Allocation

One of the key benefits of mutual funds is professional asset allocation. Fund managers constantly assess market conditions, economic trends, and asset class performance to adjust the fund’s holdings accordingly. This active management can help optimize returns and manage risk over time.

Variety of Fund Options

The Nigerian mutual fund industry offers a wide variety of fund options to suit different investor preferences and risk tolerances. Whether you are looking for equity funds, fixed-income funds, money market funds, Shari’ah compliant funds, infrastructure funds, UDS funds, etc., there is likely a mutual fund that aligns with your investment objectives.

Investing in the Nigerian Economy

Investing in mutual funds in Nigeria is not just about financial gain; it also supports the growth and development of the Nigerian economy. By investing in local businesses and government securities, mutual funds contribute to job creation, infrastructure development, and overall economic stability.
Convenience and Ease of Management

Investing in mutual funds is hassle-free compared to managing a portfolio of individual stocks and bonds. Investors do not need to worry about tracking individual investments, monitoring the market daily, or making tactical decisions. Instead, they can focus on their broader financial goals while the fund manager takes care of the day-to-day investment activities.

Steady Income Stream

For income-oriented investors, mutual funds can provide a steady stream of income through dividend distributions and interest payments. This can be particularly attractive for retirees or those seeking to supplement their regular income.

In conclusion

Investing in mutual funds in Nigeria offers a myriad of advantages for both novice and experienced investors. From diversification and professional management to liquidity and tax efficiency, mutual funds provide a comprehensive solution for building wealth over time. Additionally, they contribute to the growth of the Nigerian economy by channelling investments into various sectors.

It is however crucial for investors to conduct thorough research and select mutual funds that align with their financial goals and risk tolerance. While mutual funds offer numerous benefits, they are not entirely risk-free, and it’s essential to understand the specific characteristics and historical performance of each fund.

In summary, mutual funds represent a compelling opportunity for investors looking to grow their wealth while benefiting from professional management and a diversified portfolio. As Nigeria’s financial markets continue to evolve, mutual funds are poised to play an increasingly significant role in helping investors achieve their financial aspirations.

Michael is the founder of moneycounsellors.com, a research, data and information platform where investors can find data, information and analysis on mutual funds, pension funds and annuity products in Nigeria. He is the former MD/CEO of FBNQuest Asset Management and Chapel Hill Denham Management and an Independent Non-Executive Director of RMB Nigeria Asset Management.

Interview by ValuAlliance MD, Eno Atoyebi

1. Company profile:

ValuAlliance Asset Management (“ValuAlliance”) is a member of the African Capital Alliance (“ACA”) Group. Established 15 years ago, ValuAlliance is registered with and licensed by the Securities and Exchange Commission (“SEC”) of Nigeria as a Fund/Portfolio Manager to provide investment management and advisory services to institutional, high-net-worth, and retail investors.

We adopt an investment approach that combines in-depth company and security level research with economic and industry context assessments to identify investment opportunities in different asset classes, which is evident in our mutual funds – the ValuAlliance Money Market Funds and the ValuAlliance Value Fund. Our long-term track record affirms our investment philosophy’s success and our team’s expertise in helping individuals and institutions achieve their financial objectives.

As a licensed Fund/Portfolio Manager, we provide investment management and advisory services to institutional investors, high-net-worth individuals, and retail investors. All our products and services are registered with and approved by the SEC. Currently, we manage two collective investment schemes, the ValuAlliance Value Fund (“Value Fund”) and the ValuAlliance Money Market Fund (“ValuAlliance MMF”). Our mutual funds are suitable for savings, liquidity management, wealth accumulation, and diversification by individuals and institutions. A custodian holds the assets of our mutual funds, while the Trustees protect the interest of investors.

2. MD/ CEO profile?

Eno Atoyebi is the Managing Director of ValuAlliance Asset Management Limited; she has over 24 years of work experience in investment management. Before joining ValuAlliance (previously known as SIM Capital Alliance Limited) in 2010, she worked for Afrinvest (West Africa) Limited (formerly SecTrust), co-heading the Asset Management Division. Eno also worked for Mobil Producing Nigeria Unlimited. She is a Chartered Financial Analyst and a Fellow of the Institute of Chartered Accountants of Nigeria. She has an MBA from Hult International Business School, MA, USA and is an Alumnus of the Lagos Business School.

3. What is the company’s USP?

Our unique selling point is hinged on four pillars: Firstly, Our Ecosystem. We are part of a Group with distinct but complementary businesses operated by professionals who continue to adhere to our core values of integrity, excellence, discipline, humility, and contribution. Being a part of the ACA Group means we can tap into a broader knowledge base and networks to provide added value to our clients.

Secondly, Our People. We have an experienced, competent, and effective Board of Directors that sets the overall direction for the company. Our professionals have a solid track record of achieving long-term, consistent success. They are driven to execute the business strategy and deliver on the value proposition made to our clients.

Thirdly, Our Understanding of our Fiduciary Responsibilities. This understanding ensures we put our clients first by making decisions in the client’s interest. We are focused on enabling each client’s success by delivering strong investment outcomes to our institutional customers or empowering individuals to build personal wealth and achieve financial security.

Fourthly, Our Investment Approach. We are a fundamentals-driven investment management firm pursuing a value investing strategy. Our investment process, independent thinking, and Our deep understanding of financial markets means we are well-positioned to help our clients meet their investment objectives with careful consideration of personal circumstances and market expectations.

4. What is the firm’s vision for the next few years?

From our learnings over the past decade and the global trends, we expect the next ten years to be markedly different in outlook and to present increasingly diverse growth opportunities.

Given this, we will continue to attract and retain the best talent, deepen our investment offerings with innovative products that meet the needs of our existing and prospective clients; strengthen our deployment processes and systems, and invest in building essential partnerships. In addition, we will continue to actively collaborate with our regulators and industry associations to improve the operations of the investment management industry.

5. What is the future of industry considering the investment atmosphere in the country?

The asset management industry is expected to experience continued growth. This will be facilitated by improved governance practices across the sector, which will be overseen by regulatory bodies. Furthermore, increased competition is anticipated to result in the creation of innovative products and structures, as well as more efficient service delivery and reduced transaction costs. The industry’s future will also be shaped by factors such as the economic climate, investor behaviour, sustainable and ethical investments, market volatility, and risk management.

TOP 10 FUND MANAGERS

BY ASSET SIZE
S/N	ASSET MANAGER	ASSET SIZE
1	STANBIC-IBTC AM	N627.3bn
2	FBN QUEST AM	N238.1bn
3	UNITED CAPITAL AM	N229.6bn
4	CHAPEL HILLS AM	N109.2bn
5	ARM	N82.33bn
6	GTB	N38.4bn
7	AXA MANSARD	N35.5bn
8	QUANTUM ZENITH	N23.8bn
9	LOTUS CAPITAL	N19.5bn
10	SFS CAPITAL	N18.8

TOP 10 FUND MANAGERS

BY PRODUCTS
S/N	ASSET MANAGER	PRODUCTS
1	STANBIC-IBTC AM	17
2	FBN QUEST AM	6
3	UNITED CAPITAL AM	8
4	CHAPEL HILLS AM	7
5	ARM	7
6	GTB	5
7	AXA MANSARD	3
8	QUANTUM ZENITH	4
9	LOTUS CAPITAL	3
10	SFS CAPITAL	3

TOP 10 FUND MANAGERS

BY INDUSTRY SLICE
S/N	ASSET MANAGER	MARKET SIZE
1	STANBIC-IBTC AM	41.3%
2	FBN QUEST AM	15.7%
3	UNITED CAPITAL AM	15.1%
4	CHAPEL HILLS AM	7.2%
5	ARM	5.4%
6	GTB	2.5%
7	AXA MANSARD	2.3%
8	QUANTUM ZENITH	1.5%
9	LOTUS CAPITAL	1.3%
10	SFS CAPITAL	1.2%