By Dipo Olowookere
Chief Executive Officer (CEO) of Stanbic IBTC Pension Managers Ltd. (SIPML) Mr Eric Fajemisin, said the firm invested 12.5 percent of its Assets Under Management (AUM) worth N2.53 trillion, representing N350 billion, into the Nigerian Stock Exchange (NSE).
Speaking at a media parley in Lagos, Mr Fajemisin disclosed that the investment in equities comprised Mutual funds, Exchange Traded Funds and private equity funds, among others.
He also said that from 2004 to 2017, the firm paid a total of N66.5 billion to 37,700 retirees. The payment, according to him, was made monthly and quarterly as required by retirees without hitch in the last 14 years.
He also stated that the company’s AUM was in excess of N2.53 trillion with over 1.6 million retirement savings account across the country.
However, he emphasised that, “There is still more land to conquer in the industry and great improvement is also required.”
Mr Fajemisin said SIMPL was now Nigeria’s largest Pension Fund Administrator (PFA) in terms of clients.
On the micro pension scheme, he said if properly harnessed, it has a great potential, saying it has the capability of landing the industry into the next phase of growth and development.
According to Mr Fajemisin, the scheme had the capacity to deepen the country, considering the fact that 70 percent of Nigerian working population operate in the informal sector.
He highlighted other benefits of the scheme to include improved standard of living for the elderly, safety of funds, access to mortgage facilities and health insurance, among others.
On the part of SIPML Executive Director (Investments), Mr Oladele Sotubo, the multi fund structure to kick off on July 1, would compel PFAs to invest not below the required threshold.
According to him, the multi fund structure is divided into four different funds tagged Fund one, Fund two, Fund three and Fund four, saying age was determinant factor in PFAs investment exposure in the proposed multi fund structure.
Mr Sotubo said Fund one was the most aggressive fund for below 49 years, pointing out that PENCOM rule stipulated that PFA equities exposure in Fund one should be a minimum of 20 percent and maximum of 75 percent.
He explained that the Fund two is for 49 years and above with a minimum equity investment of 10 percent and a maximum of 55 percent, while under Fund three, 50 years and above were allowed to invest a minimum of 5 percent in equities and maximum of 20 percent.
He said that PFAs equity exposure under Fund four would be zero to 10 percent to minimise risk.
Popoola Urges Investors to Diversify Portfolios to Reduce Risks as Stock Prices Rise
By Aduragbemi Omiyale
Investors in the stock market have been advised to embrace the strategy of diversification of portfolios in order to get a better return on investment (RoI).
The chief executive of the Nigerian Exchange (NGX) Limited, Mr Temi Popoola, while reacting to the current uptrend rally in the equity market, stressed that diversification of portfolios would go a long way to reduce risks, explaining the need for investors to re-balance their stock basket.
So far this year, the local bourse has been buoyant with the NGX-All Share Index (NGX-ASI) Year-to-Date (YTD) returned at 26.62 per cent as of Friday, May 27, 2022, and is currently over the psychological 54,000-level for the first time since the 2008 crash, as opposed to the broad-based bearish performance experienced in other markets.
Mr Popoola stated that in spite of the current appreciation in prices of equities in the country, opportunities still exist for investors in other asset classes.
He said as a multi-asset Exchange, NGX has various products for every investor regardless of what their investment goals, risk appetite or return expectations might be, listing the products like equities, fixed income, Exchange Traded Funds and Derivatives.
According to him, there are opportunities in every segment of the market, emphasising that it is important for investors to do the analysis, and understand where those opportunities are, as there are opportunities, not only on the equity side but across the various assets classes.
He, however, said that the Nigerian capital market and the business of the stock exchange would always be impacted by dynamic economic trends and investor demands.
Explaining further, he said achieving success through growth that creates value will increase the Exchange’s ability to operate efficiently and profitably in the transient advantage economy that has unfolded in Nigeria and around the world.
“While there has been no respite in the macroeconomy and operating environment due to lingering oil price and foreign exchange pressures, our long-term outlook for the Exchange remains positive as listed companies continue to show resilience and our members have been repositioned to deliver superior value to investors,” he said.
Mr Popoola noted that NGX would continue to find more products that a lot of Nigerians and the youth demography are attracted to, and introduce to the market.
Nigerian Exchange Index Skyrockets to 54,085.30 points After 1.76% Rise
By Dipo Olowookere
It was another fantastic day at the Nigerian Exchange (NGX) as the recent bullish run witnessed lately continued after a short disruption caused by the raising of the interest rate to 13.0 per cent from 11.5 per cent by the Central Bank of Nigeria (CBN) on Tuesday.
Yesterday, the stock market appreciated further by 1.76 per cent on the back of renewed interest in local equities buoyed by the release of the much-awaited financial statements of FBN Holdings Plc for the 2021 fiscal year.
At the exchange on Friday, the All Share Index (ASI) skyrocketed by 933.98 points to 54,085.30 points from 53,151.32 points, while the market capitalisation jumped by N504 billion to N29.158 trillion from the preceding day’s N28.654 trillion.
The gains were influenced by sustained buying pressure in shares in the banking, insurance, energy and industrial goods sectors, which appreciated by 0.48 per cent, 0.32 per cent, 0.24 per cent and 0.01 per cent respectively, while the consumer goods counter depreciated by 2.41 per cent due to sell-offs in Nigerian Breweries, UAC Nigeria and others.
During the session, investors traded 208.1 million equities valued at N5.5 billion in 4,898 deals compared with the 266.2 million equities worth N5.1 billion transacted in 5,501 deals a day earlier, representing a decline in the trading volume and number of deals by 21.83 per cent and 10.96 per cent respectively and an increase in the trading value by 7.92 per cent.
Cutix was the highest price gainer yesterday as its value went up by 9.96 per cent to N2.87, Airtel Africa appreciated by 9.89 per cent to N1,767.00, Wema Bank gained 8.63 per cent to finish at N3.65, Ardova improved by 7.09 per cent to N15.10, while FBN Holdings increased its value by 6.98 per cent to N11.50.
On the other side of the coin, the heaviest price loser was Nigerian Breweries as it deflated by 10.00 per cent to N69.30, UAC Nigeria reduced by 9.87 per cent to N10.50, University Press declined by 9.52 per cent to N2.85, Royal Exchange went down by 9.26 per cent to 98 kobo, while Linkage Assurance depleted by 6.67 per cent to 56 kobo.
Business Post reports that the market breadth was at equilibrium on Friday as there were 19 appreciating stocks and 19 depreciating stocks.
Naira Trades N617/$1, N419.50/$1 at P2P, I&E FX Windows
By Adedapo Adesanya
The Naira had a bad day on Friday as it depreciated in the Peer-to-Peer (P2P) segment of the foreign exchange market against the Dollar by 0.16 per cent or N1 to N617/$1 in contrast to the previous day’s N616/$1.
Also, at the Investors and Exporters (I&E) window of the forex market, the Naira depreciated by 0.15 per cent or 62 kobo against the American currency to N419.50/$1 compared with the N418.88/$1 it was transacted on Thursday.
According to data obtained from FMDQ Securities Exchange, the domestic currency suffered this loss amid a reduction in the forex turnover for the trading session.
FX trades worth $107.84 million were carried out yesterday compared with the $157.46 million executed a day earlier, representing a decline of $49.62 million or 31.5 per cent.
At the interbank segment of the market, the local currency closed weaker against the Pound Sterling as it depleted by N1.01 to trade at N524.57/£1 compared to the previously traded rate of N523.56/£1 and against the Euro, the domestic currency fell by 19 kobo to close at 445.26/€1 in contrast to N445.07/€1.
In the cryptocurrency market, the bulls took control as seven of the 10 cryptos tracked by Business Post pointed north, with Dogecoin (DOGE) recording the highest rise of 6.9 per cent to trade at $0.0827.
Binance Coin (BNB) recorded a 2.4 per cent increase to trade at $302.89, Solana (SOL) appreciated by 2.1 per cent to $41.99, Ethereum (ETH) gained 0.7 per cent to sell at $1,770.73, Cardano (ADA) added 0.4 per cent to its value to finish at $0.4625, Litecoin (LTC) improved its price by 0.3 per cent to trade at $62.66, while Bitcoin (BTC) appreciated by 0.1 per cent to settle at $30,000.
On the flip side, the highest loser was the rebranded TerraClassicUSD (USTC), which continued its windfall with a 6.4 per cent loss to trade at $0.0397, Ripple (XRP) recorded a 2.4 per cent slide to quote at $0.3867, while the US Dollar Tether (USDT) moved downwards by 0.01 per cent to sell for $0.998.
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