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NSE ETFs Assets Hit N4.26bn in Five Years



CEO of the Nigerian Stock Exchange (NSE), Mr
  • NSE ETFs Assets Hit N4.26bn in Five Years

The Nigerian Stock Exchange on Monday said the Assets Under Management of the eight listed Exchange Traded Fund stood at N4.26bn as at September, 2016.

The NSE Chief Executive Officer, Mr. Oscar Onyema, spoke at the ETF 2016 workshop organised by the bourse in partnership with Stanbic IBTC Asset Management, Lotus Capital and Vetiva Fund Managers Ltd. in Lagos.

An ETF is an investment vehicle that tracks an index, a basket of assets, or a commodity, but trades like regular shares on a stock exchange.

These investment vehicles allow investors a convenient way to purchase a broad basket of securities in a single transaction.

Onyema said that the figure represented a growth of 1,900 per cent when compared with AUM of N287.5m in 2011 when ETF was introduced on the Exchange.

He said, “As at today, we have recorded about 1,900 per cent growth in our ETF market with total AUM of about N4.24bn as at September 2016 on eight ETFs currently listed and traded on the Exchange.”

He said that ETFs were introduced on the NSE in December 2011 with cross listing of Newgold ETF with AUM of N287.5m to provide investors with new opportunities to diversify their portfolios and access the market.

Onyema said that the eight ETFs in the market are Newgold ETF, Vetiva Griffin 30 ETF, StanbicIBTC ETF 30, Lotus Halal Equity ETF, Vetiva Sector Series ETFs- Banking, Consumer Goods and Industrial, and Vetiva S&P Nigerian Sovereign Bond ETF.

He explained that the Exchange had six equity backed ETF, one commodity ETF, and one bond ETF.

He said that global ETF AUM had grown to $3tn within five year in April, 2016 from $1.4tn in December 2010, representing a growth of over 102 per cent.

He said, “Experts have predicted the continued growth of the ETF industry, estimating that global AUM will reach at least seven trillion dollars by 2021.”

The NSE chief said that currently, there were about 506 ETF investors in the market.

He, however, expressed optimism that “the growth of ETFs in Nigeria has only just begun with the support of market intermediaries, stakeholders and our regulator”.

Onyema said that the existence of ETFs in the Nigeria market was beneficial to retail and institutional investors, as ETFs offer a direct and inexpensive way to attain diversified exposure to an index, commodity, sector or region.

He said ETFs also offer additional benefits of low expense ratio compared to mutual funds, increased liquidity.

Onyema said that this could be used to execute different investment strategies asides from diversification and tradability.

He further said that the workshop was organised to create awareness of the product, address its challenges and promote the opportunities in Nigeria and Africa.

He said, “The Exchange remains committed to partnering with all market stakeholders, to continue to build and develop the Nigerian capital market, while offering a wide range of investment vehicles for all investors.”

The Executive Director/Head, Sub-Saharan Africa Client Coverage Team, MSCI, Mr. Gareth Allison, said that ETF aids investors to diversify their diversification.

Allison said that MSCI would aid the Exchange to develop and transform its ETF market.

He said, “We want to help investors to utilise opportunity in the market and make maximum return.”

On the Fundamental of Market Indices, Allison said that investors need to understand the underlying assets before investing in any market.

He said that indices were very important in investment decision, and as well used as policy benchmark.

He said, “Market is revolving, investors are revolving too, and we are faced with behavioural investors.”

In her comments, Ms. Nerina Visser, ETF Strategist and Advisor from South Africa, said that market regulators needed to know the type of ETFs to develop to ensure investors patronage.

Visser said that market markers were needed to act as liquidity boosters for ETF to thrive in any market.

She said that South Africa had the highest market for the product with 74 Exchange Traded Products across all asset classes.

Visser added that market should come out with specific investors’ needs in the establishment of ETF.

She also said that regulators should consider reducing trading fees for ETF to increase patronage.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.

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Konga Chairman, Ijogun, Zinox Group ED, Etukudoh Bow Out in Style



Ijogun and Etukudoh- Investors King

Serial digital entrepreneur and Chairman, Zinox Group, Leo Stan Ekeh have heaped praises on two recently retired Executive Management staff, Chairman of Konga Group, Mr. Olusiji Ijogun and Executive Director, Zinox Group, Mr. Etiene Etukudoh for their immense contributions and years of outstanding service to the companies, even as he expressed deep gratitude to them for their invaluable efforts and sacrifices.

Ekeh spoke at a smart valedictory event held in honour of Ijogun and Etukudoh.

The event was held at the impressive Yudala Heights located at Idowu Martins, Victoria Island, Lagos on Tuesday, August 3, 2021. The well-attended event, organized in strict compliance with COVID-19 regulations, saw Executive Management and staff of the Zinox and Konga groups, as well as other guests and associates of the departing staff in attendance.

While delivering his appreciation speech, Ekeh explained his many years of a fruitful relationship with the two distinguished personalities and wished them greater heights in their future endeavours.

Ekeh, who described Ijogun as a brother, stated that integrity is a major quality for the choice of Chairman for any organization.

“For a company to be successful, the biggest brain is the Chairman and the CEO as they prescribe and supervise the implementation of quality culture, structure and systems. It is not just the knowledge of the business, the integrity of the personality and the quality of leadership. The business is bound to fail if the leaders don’t believe in God and that’s a major problem with start-ups in Africa. Konga wouldn’t have survived if I hadn’t known Siji.

‘‘It is a privilege to have Mr. Ijogun as Chairman of the Konga Group and we really appreciate his many efforts,” Ekeh said.

Further, Ekeh drew rich illustrations from his many professional and personal experiences with Mr. Ijogun, noting that his time as Chairman of the Konga Group was a blessing to the entity.

Also speaking about Etukudoh, who spent many performance-filled years at TD Africa where he rose to the position of Managing Director, Ekeh described him as an ideas man who he can always vouch for.

“Etiene is an all-rounder. He worked for all the companies in the Group. He is a good Nigerian and he has style. He’s one young man I can vouch for. He’s brilliant, modern and trustworthy. I have great confidence in him and I always told him when I have new businesses. He’s a man of great ideas and we consider it a privilege for him to have worked with us. This relationship is for life. You have me as a father so you can call me anytime,” Ekeh assured.

The event also offered attendees the opportunity to share their goodwill messages as well as their experiences of working with Ijogun and Etukudoh. Many of the speakers were effusive in hailing both men as inspirational professionals who will be greatly missed.

Reacting to the showers of encomiums, Ijogun, a certified corporate guru with a track record of exceptional service with a host of multinationals, expressed gratitude for the opportunity to serve as the first Chairman of the Konga Group after its acquisition by Zinox. He described Ekeh as a calculated risk-taker and an unmatched incubator of businesses that can turn a profit from waste.

He also predicted a progressive future for Konga and charged the Group to remain resilient by sustaining its impressive growth trajectory.

“Konga’s growth is phenomenal. Nobody knew online platforms would be the order of the day before COVID-19. To the glory of God, Konga has moved from loss-making to profit-making, with over 15 times greater in terms of revenue and I must commend Mr. Ekeh for the deep pockets. Since inception, we’ve added the Health, Food, Bulk and Travel business and still have more in the offing. With the influx of investors, Konga will be a major African business initiative in the nearest future,” Ijogun declared.

Also expressing gratitude for the memorable show of love, Etukudohreaffirmed his loyalty as a brand ambassador for the Zinox Group.

“I am grateful for the honour. In everything, I just wanted a big brand. I want to celebrate everyone who has been a part of my life. It’s been a journey. I came into the Group and made up my mind to demystify what people call the ‘Oga status’.

‘‘After today, nobody remembers the title but how you treated them. I’ll recommend that every staff work closely with the Chairman for at least one year before they leave the company. Chairman has been a big brother and his hunger has no part two. I’m grateful to Chairman, his wife, Mrs. Chioma Ekeh and everyone else. This is a great family and we have to keep it growing forever,” he said.

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CBN Reveals Framework For Creation Of Payment Service Holding Companies



Godwin Emefiele CBN - Investors King

The Central Bank of Nigeria (CBN) on Tuesday released guidelines for the establishment and regulation of Payments Service Holding Companies (PSHCs) in Nigeria.

This is contained in a circular issued by Mr. Musa Jimoh, CBN’s Director, Payments System Management Department.

Jimoh instructed deposit money banks, payments service providers and other financial institutions to take cognizance of new license categorization for the Nigerian payments system.

“It requires companies desirous of offering switching and processing services, and mobile money services to set up a PSHC structure such that activities of the subsidiaries are clearly delineated.

“The CBN hereby issues the guidelines to facilitate the understanding of regulatory requirements for operations of PSHC in Nigeria,” he said.

He urged all stakeholders to ensure strict compliance with the guidelines and all other regulations.

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Banking Sector

Standard Chartered Launches Easy Payment Plan For Credit Card Users



Standard Chartered

Standard Chartered Bank Nigeria Limited has launched one of a kind solution for clients tagged Easy Payment Plan (EPP). The EPP allows Credit Cardholders to choose an installment plan for purchases made with SC Credit Card.

Speaking on the solution, Bonaventure Odukwe, Head of Personal Banking and Alliance said, “Convenience and flexibility are at the heart of the solutions we continuously bring to our clients. With this EPP solution, clients can spread repayment in equal installments for a convenient period ranging from 3, 6, 9 to 12 months; enjoy a reduced interest rate of 1.5% per month and earn reward points when you make purchases and discounts at select merchant locations.

EPP attracts no processing or liquidation fees and gives our esteemed clients the opportunity to enjoy the lifestyle that they want now while ameliorating the stress of paying at once. For us this is one of the many ways that we continue to offer value to our clients, support their financial goals and reiterate that we are here for good.”

With the new Easy Payment Plan, clients can make purchases from their favorite stores and then spread the repayment in a flexible and stress-free way and at their own convenience. It is a convenient way to use ones’ Credit Card to make bulk purchases at a reduced interest rate, the bank said.

“This is open to all clients of the Bank that have operating credit cards and new clients that sign up for our credit cards.”

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