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Leading Mutual Funds in Nigeria by reporting and transparency

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Mutual funds in Nigeria have grown in leaps and bounds, as the NAV Summary Report from the Securities and Exchange Commission, (SEC) obtained a few weeks ago revealed that there are 106 mutual funds in the country with a total asset value of N1.33 trillion.

What is the extent of its Transparency: Transparency is the state of being easily detected or seen through, easily and readily understood  by the investing public i.e the ability of the investor to look through his investment portfolio report or fact sheet and be able to see what the investment manager is doing with his money.

Why it matters to investors: Investors would like to monitor their investment performance, the risks involved as well as what their money is being invested in. In addition, investors would like to know how much they pay by way of fees. Transparency makes that information known.

To the fund managers, transparency is key to mutual fund activities.  Fund managers operate in a competitive market environment and transparency gives them a competitive advantage. A fund manager that discloses information readily, timely, and voluntarily stands to attract investment contributions from investors. It helps to make communication with investors clearer and timely.

Where they stand:

Stanbic IBTC Asset Management Company:

Daily Prices: Stanbic IBTC Asset Management Company has been at the forefront of mutual fund reporting transparency in Nigeria. It has daily fund prices for the 14 funds it manages updated daily on its website and sent to you upon request. Not only are the prices readily available daily, but they are also available on a historical (inception to date) basis.

Factsheets: Prior to 2019, Stanbic IBTC Asset Management Company used to have a monthly fact sheet for each of their funds, but that got changed to a consolidated quarterly report. The quarterly report is released on a timely basis. The beauty of that report is that it tells the investor the risk profile of each fund, the expense ratio, asset allocation by sector, top 3 stock holdings (which is grossly inadequate disclosure) as well as current fund performance juxtaposed with 3- and 5-year performance data. The fact sheet also shows the investor the performance of the benchmark index for each fund.  Other information contained in the fact sheet includes fund size, NAV, initial and subsequent investments as well as fund objectives. The Q1 2020 factsheets are currently on the website.

Annual Financial Reports: In addition to the rendition of the fact sheets as noted above, Stanbic IBTC Asset Management publishes the audited financial statements of all the funds under its management. Although that of 2019 has not been published, that of 2018 has been published.

Vetiva Asset Management Company:

Daily Prices: Vetiva Asset Management Company is the second most transparent fund manager in Nigeria. The daily fund prices are readily available although some times it looks like only the dates change without the actual prices changing. This may have to do with the valuation frequency of the funds.

Factsheets: Vetiva Asset Management Company has a monthly factsheet for its funds. The fact sheet contains most of the information that investors require. It beats Stanbic IBTC as it reports the top 10 holdings, which is better than Stanbic’s 3 top holdings. Like Stanbic, Vetiva Asset Management Company reports the risk profile of its funds but not all, and also reports the gross expense ratio. In addition, it lets investors see the funds’ MTD, QTD, YTD, ITD performance in juxtaposition with the relevant benchmarks. The factsheets used to be timely but as at the time of writing, the latest available is for the end of March 2020, it is likely they fund manager may be changing to quarterly reporting like Stanbic IBTC. Other pertinent information on the fact sheet includes dividend history, NAV, Bloomberg identifier, and lots more.

Lotus Capital Asset Management Company:

Daily Prices: Lotus Capital Asset Management comes next in line on transparency in mutual fund reporting. The fund manager publishes daily mutual fund prices but unlike Stanbic and like Vetiva, historical prices are not readily available. In that case, the prices are available on a get it or lose it basis.

Fact Sheets: Lotus Capital Asset Management publishes its factsheets on a quarterly basis and has published Q1 2020 edition for each of its funds. Though it does not show expense ratio, it shows the management and incentive fee percentages as well as a description of the risk profile of the fund. In terms of returns, the factsheet shows the QTD, YTD and ITD returns. It does show 5 top stock holdings as well as asset allocation by sector.

Annual Financial Reports: In addition to the fact sheets being available quarterly, Lotus Capital Asset Management publishes the audited financial statements of all the funds under its management. And the 2019 audited financial statement has been put on the platform.


Quantum Zenith Asset Management Company:

Daily Prices: Quantum Zenith Asset Management Company has made a lot of changes to its reporting and by so doing has become one of the most transparent in mutual fund reporting. Daily prices are readily available as well as historical prices in a downloadable form.

Factsheets: Quantum Zenith Asset management Company has the funds’ factsheets tucked away on the website The fund manager will be better off making it easier for investors to find the factsheets as its presence is not very evident from the home page.  The fact sheet has most of the required information including top 5 holdings. The beauty of the performance presentation is that it shows whether the fund is out or under perfuming the relevant index and by how much. Information on expense ratio is not provided except for the management fee rate.


United Capital Asset Management Company:

Daily Prices: United Capital Asset Management Company would probably have ranked the first or second fund manager if not for the lack of daily prices. On its web site, the last daily price is dated June 14th, 2019. However, I have been receiving the weekly prices upon request and investors can too.

Factsheets: United Capital Asset Mgt. Ltd publishes a monthly fact sheet, the latest being for the month of May 2020. The factsheet shows the risk profile of the fund, the total expense ratio, as well as MTD and YTD return numbers put side by side with that of the benchmark in addition to a 5-year performance summary.  Unfortunately, it does not contain information on what the funds are invested in but it shows the allocation by asset type.

Others

FSDH is another fund manager that practices or is cognizant of the importance of transparency in fund reporting. The fund manager reports daily prices which can also be downloaded on a historical basis. It also publishes fact sheets. Regrettably, FSDH has been slacking on the timeliness of the fact sheets as the last published ones are for Q4 2019 

FCMB Asset Management is yet another reporting transparency conscious fund. The fund manager ensures that the fund prices are on their website daily. They used to let investors have the funds’ fact sheets but that has stopped as the last one posted was for December 2018

Other Fund Managers:  There are other fund managers that are transparent with regard to daily fund prices like ARM Asset Management, Afrinvest, Chapelhill, FBN, FCMB, and Meristem but the lack of factsheets pushed them out of contention.

In all, the fund industry has come a long way in Nigeria and it continues to evolve, as the regulators tie all the loose ends and fund managers begin to leverage off of the advantages from transparency, my hope is that mutual fund reporting will improve and the investors will be the happier for it.

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Business

Hoodlums loot Shoprite store in Ilorin, stole iPhone 11 mobile sets, others

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Some suspected hoodlums l allegedly looted the Palms Mall on Fate road, Ilorin, Kwara State capital. The mall hosts stores of Shoprite, and Lifemate Furniture among other stores including Mobile phones retailers.

This was revealed by an eye witness.

He said, “They allegedly stole iPhone 11 mobile sets, other mobile sets brands, Refrigerators, and households items among others.”

According to him, the suspected hoodlums forced their way into the Mall after they have stormed and allegedly looted Kwara Agro Hall, an agro resettlement centre, where they carted away Aluminium roofing sheets, mattresses, bags of cement and bags of flour among others.

Back story: Similarly, similar incidents had occured in Lagos when suspected hoodlums looted at Shoprite Malls across Surulere, Sangotedo.

According to reports, suspected thugs from Orile have invaded the mall and the neighbourhoods.

The alleged looters were seen with a cartload of goods on the streets along Ajah Road.

An eyewitness account also submitted that the hoodlums were looting shops around Bode Thomas and Adeniran Ogunsanya.

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Business

India seeks closer ties with Nigeria as trade volume reaches $14 billion

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India has expressed its readiness to deepen economic ties with Nigeria towards promoting investment and trade between both countries.

Amb. Abhay Thakur, High Commissioner of India to Nigeria, said this during a courtesy visit to Gov. Abdullahi Ganduje on Friday in Kano.

Thakur noted that India and Nigeria had long-standing relations based on mutual respect that predates the independence of the two countries.

”We are Nigeria’s largest trading partner and the country is our largest trading partner in Africa.

“Our bilateral trade volume reaches $14 billion in 2020 and we export various goods ranging from machinery and agriculture products to the tune of $3.5 billion to Nigeria,” he said.

Thakur called for greater bilateral trade co-operation between Nigeria and India as a way of fostering the existing friendly trade and economic relations between the two countries which dated back to 1960.

In his response, Ganduje said that relations between the countries have been warm and cordial; and have witnessed growth and transformation.

The governor called for effective collaboration between India and Kano on energy, health care and film industry.

He said that Indian farm implements have helped to boost rice production in Nigeria.

Ganduje said that Indian companies are doing very well in the state including an hydro power project and the Indian rice mill in Kano which he said is the biggest in West Africa.

He said that the state government has sponsored hundreds of students to study in India.

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Business

#EndSARS: LCC says it didnt remove CCTV before Lekki Toll Plaza shooting

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The management of Lekki Concession Company (LCC) has disclosed that the perimeter CCTV cameras were not removed and there was no instruction from anyone to remove the perimeter CCTV cameras.

This was disclosed by the management of the company in a press release, which was released by the company.

Backstory

Several allegations had been channeled at the company by Nigerians over the removal of the CCTV cameras at the Lekki toll gate on Monday a few hours to the shooting of #EndSARS protesters at the toll gate by security operatives.

However, members of the public have aired their respective opinions on social media about the alleged removal of the perimeter CCTV Cameras as some believed it was an attempt to compound the ongoing civil unrest and the breakdown of law and order.

 

What they are saying

The management of Lekki Concession Company strongly condemns the shooting of peaceful protesters at the Admiralty Circle Toll Plaza on 20th October 2020.

LCC management stated that there was no instruction from ANYONE to remove the perimeter CCTV cameras, and the company would never support or condone such an unscrupulous act meted out on unarmed protesters.

However, in the press release LCC reiterates that as the perimeter closed-circuit television system (CCTV) are Mobotix Digital cameras, it is impossible for the cameras to be removed, as removing them will require the use of machinery to reach the heights that they have been installed.

Other issues discussed

The company provided insight as to why there was a total power outage at the toll plaza on Monday Night, the company said;

“LCC receives power from the IPP grid, the power albeit stable is taken off from time to time. At such times, LCC relies on the backup generators for power supply. However, following the declaration Of the curfew by the state governor, LCC withdrew ALL her staff from the office locations. This is the reason why the lights could not be restored when the mains from IPP went Off temporarily. This is verifiable.

Additional statement in the press release reads; “CC sincerely regrets the unfortunate incident at the Lekki toll plaza and condemns the shooting of unarmed protesters.

“Since the commencement of the protests, the company cooperated with the protesters from, identifying with the cause and need to end the police brutality. This prompted the company to provide lights, toilets among other items to the youths as a show of solidarity.”

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