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Our $5b Investment Under Threat, Say Investors



West Africa Fisheries
  • Our $5b Investment Under Threat, Say Investors

Fish giants have begged the Federal Government to save their investments of over $5 billion from imminent collapse.

They said from 40 fishing companies operating almost 250 industrial vessels 15 years ago, the industry is nothing to write home about today.

Speaking under the aegis of the Trawler Owners Association (NITOA), they said their operations were being affected by what they called the economic harsh environment.

NITOA National Vice President, Gen Morounfolu Aromire (rtd), said: “Despite the more than $5.2 billion investment of our members on jetty facilities, equipment and infrastructure, only about 130 vessels are in operation due to the harsh situations that the industrial fishing operators have had to contend with.

“These have led to several companies going into limbo to the extent that only 12 companies are operating now.”

The group said with support, it would assist “in generating the much-needed foreign exchange from the non-oil exports”.

NITOA’s operations, Aromire added, provided employment to over 6,000 Nigerians and more than 600,000 jobs indirectly across the country before their predicament, adding that the government needs to assist them.

The group, he said, would have improved on its shrimp production and export capabilities and increase local fish production level from 10 per cent to 35 per cent, if not for the challenges facing them.

“Sea armed robbery and piracy have led to the killing and maiming of crew men, thus making the highly productive areas in our marine waters inaccessible.

“While we must accept that the situation is much better than it was few years back, there is still a lot of room for improvement. Attacks were still reported some few days ago. NIMASA must synergise much more with the Nigerian Navy to ensure that our maritime environment is safe and secure.

“While we appreciate efforts by the Federal Government at earmarking a fisheries terminal at the KLT in Lagos, the encumbrances on the way of those efforts may not allow it mature as quickly as one may wish.

“We, therefore, want to further suggest that companies already operating from KLT 1 and 2 be allowed to continue to operate from their locations.

“NPA may only need to charge some reasonable commercial rates, but which will not drive operators out of business,” he said.

The Shippers Association of Lagos (SAL) has also cried out over the rising robbery on the waterways.

The waterways, it said, had become a haven for robbery, urging the Nigeria Maritime Administration and Safety Agency (NIMASA) to secure the terrain.

SAL President Mr Jonathan Nicol said NIMASA must collaborate with the law enforcement agencies to tackle the problem. Nicol urged NIMASA to do more to secure goods and ships on waterways.

“NIMASA should use helicopter regularly to checkmate these pirates and also seek the protection of the Navy, Customs and the police on the issue.

“If the Federal Government fails to do this, it means we are going to lose so much revenue from the maritime sector,” Nicol said.

A shipper, Mr Solomon Anderson has suggested radar and satellite technology as part of the measures NIMASA should look into in finding a solution to the problem.

He called on the National Assembly to look at the Anti-Piracy Bill before it as many indigenous companies have been crippled and many children orphaned because sea pirates activities.

Anderson also identified radar technology and effective information sharing as the solution to the incessant high-jacking and robbery of shipping trawlers and oil vessels.

“Nigeria’s food security is being affected; our foreign exchange is being affected because these activities lead to capital flight as more foreign vessels now do most of the jobs,” he said.

But NIMASA’s Director-General Dr Dakuku Peterside, said the agency was addressing the security challenges on the waterways.

He added that the agency had initiated some positive measures to enhance security within and outside the nation’s territorial waters.

Peterside said the agency was working with security agencies, such as the Air Force, Navy, Army and Police, to ensure that the waterways are safe for freighting and fishing.

He advised trawler owners to ensure that they paid adequate attention to the remuneration of their crew because many are poorly paid; noting that poor pay usually leads them into criminal activities, such as selling their first catch at sea and subsequently drawing the attention of pirates.

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.


REVEALED: Millionaire Investors’ Biggest Mistakes in a New Survey




Relying on guidance from historical returns is the number one investment mistake made by millionaires, reveals a new global survey.

The survey was carried out by deVere Group, one of the world’s largest independent financial advisory and fintech organisations, and queried 752 investors with investable assets of more than £1m (or the equivalent) in the UK, Europe, Asia, Africa, the Middle East, Australasia, Latin America and North America about their biggest errors whilst investing before they became clients.

The top cited mistake (38%) was reliance on historical returns, the second (35%) was not having sought advice, and the third (21%) was lack of diversification. A collection of other mistakes and ‘do not knows’ made-up the remaining 6%.

deVere CEO and founder, Nigel Green, says: “It’s interesting to see that for the first time in our surveys of this kind that the number one investment mistake high-net-worth individuals have made is, they say, reliance on guidance from historical returns.

“To me, this suggests that wealthy investors are paying attention to how the world has changed dramatically this year and, therefore, investment strategies need to adapt and evolve too in order to reflect the new era we’re living in.

“With fundamental shifts in economies and the markets, the often-quoted industry phrase ‘past performance is not a reliable indicator of future performance’ has perhaps never rung more true than it does today.”

He continues: “It’s encouraging that seeking advice is deemed fundamental to success by millionaires as it shows that DIY investing and not having a regularly reviewed plan is, typically, a path full of costly pitfalls.

Mr Green goes on to add: “The lack of diversification was in some ways bound to make the top three. Why? Because it is universally regarded as an investor’s best tool to mitigate risks and capitalise on opportunities that arise.”

The fact the top three mistakes are all fairly close in percentage terms says to the deVere boss, “that, in fact, they all link in pretty tight to number two – that’s to say, having a robust, considered and consistently reviewed strategy for your personal finances.”

Mr Green concludes: “To some, this could appear as if investing your hard-earned money is dangerous.

“Yet nothing could be further from the truth – not investing is likely to be more dangerous to your wealth over the longer-term.

“This is shown by the fact that most of the world’s wealthiest people are themselves committed investors.”

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Investors Turn to Digital Health Startups With $10 Billion Funding in 2020




Global Investors Dump $10 Billion on Digital Health Startups in 2020

Data presented by Buy Shares shows that digital health startups funding has hit $9.9 billion in 2020. The highest funding was recorded in Q3 at $4.6 billion.

The surge in funding is expected to continue

Between Q1 and Q3, the funding grew by 58.62%. During Q1, the funding was $2.9 billion. The figure slightly dropped during Q2 to $2.4 billion.

The Buy Shares research also overviewed the five largest digital health funding deals as of Q3 2020. Bright Health was the biggest deal at $500 million with funding from Blackstone, Tiger Global Management among others. XtalPi recorded the second-highest funding at $319 million.

In the third spot, there is RecursionPharmaceuticals with cumulative funding of $239 million while Ro is fourth at $200 million. Out of the overviewed top funding, Ground Rounds is ranked fifth at $175 million.

The research highlights the value of digital health to investors. According to the research report:

“To investors, the digital health sector offers a promise of both good financial returns and key positioning by supporting companies that build solutions to address clinical and operational hurdles. The sector offers a unique value to companies as they hold integral direct access to both providers and patients.”

The surge in funding is expected to continue and shatter various records in 2020.

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World’s Five Largest Asset Management Companies Hold $22.5trn in Assets, More than US GDP



Global Five Biggest Asset Management Companies Hold $22.5trn in Assets, More than US GDP

Institutions and individuals who invest money usually do so with the asset manager’s help, a company that manages their investments and makes a profit for both sides. These firms make well-timed investment decisions on behalf of their clients to grow their portfolio and finances.

According to data presented by Stock Apps, the world’s five largest asset management companies hold $22.5trn in assets, more than the GDP of the United States. With more than $7.3trn in assets under management or one-third of that value, BlackRock represents the leading asset manager globally.

Total Assets Under Management of BlackRock Surged 57% in Five Years

Asset management companies work with several investors, which enables them to reduce the risk, diversify their clients’ portfolios, and provide access to higher-value options with better capital appreciation prospects. In many cases, they make money by charging fees based on the number of assets they manage, although some companies charge flat fees. These firms usually also provide other services than asset management, which generates only a part of their revenue.

The world’s largest asset manager, BlackRock, has become one of the leading players on the financial market over the last 25 years. It serves individual investors, companies, governments, and foundations through 70 offices all around the world. BlackRock also tops the list of largest Exchange Traded Fund (ETF) providers in the United States and has played a huge role in advising the US government during the financial crisis.

In 2015, the total value of assets under BlackRock’s management amounted to $4.6trn, revealed the company’s annual report. During the last five years, this figure surged by 57% to $7.3trn in 2020. Besides leading in the value of managed assets, the New York-based financial giant also witnessed a steady market cap growth in 2020. In September, the total value of BlackRock stocks hit $83.6bn, a 22% jump year-over-year.

With $5.7trn in total assets under management, the Vanguard Group ranked as the second-largest asset manager globally. The US financial company, with 20 locations worldwide and 17,600 employees, is also the second-largest provider of exchange traded funds and the largest provider of mutual funds in the world.

Eight of the top 10 Asset Management Firms are US Companies

UBS Group represents the third-largest asset manager globally, with more than $3.5trn in assets under management. The Swiss financial corporation and the country’s largest bank announced a net profit of $1.23 billion for the second quarter of 2020, an 11% drop year-over-year mostly caused by the continued credit losses amid the coronavirus crisis.

However, higher trading activity continued to support the bank’s earnings between March and June. The Group’s quarterly earnings also revealed an operating income of $7.4bn, compared to $7.5bn a year ago. Statistics show the Swiss lender lost $1.6bn in market capitalization in 2020, with the total value of stocks falling from $45.6bn in December 2019 to over $44bn this month.

State Street Global Advisors and Fidelity Investments ranked as the fourth and fifth largest asset managers globally, with $3.05trn and $2.92trn in total assets under management.

Analyzed by geography, the US asset managers lead on the global list of the most successful companies, with eight of the top 10 asset management firms from the United States. Statistics also show the world’s largest banks like JP Morgan Chase, Goldman Sachs, and Bank of America were not among the top five asset managers in terms of managed assets.

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