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Grow Your Investments Through Asset Managers
By Goddy Egene
Williams Ekunno and Mathew Ibe have been childhood friends. Apart from the
fact that they hail from the same village, they came to Lagos and got admission
to the university same year.
Although they read different courses, they graduated at the same time and were
able to make some savings during their National Youths Service days.
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When they got back to Lagos, they were introduced to the world of investments.
Having been doing things together, they both agreed to begin investments with
part of the savings they made during the NYSC year.
But for the first time, Ekunno and Ibe took different decisions regarding how to
invest their money.
While Ekunno decided to be investing his money in the stock market directly by
selecting stocks, Ibe chose to invest through an asset management company.
When both friends met to review their investments, Mathew was ahead because his
investments have witnessed a robust growth.
This story shows how asset managers can help to improve the fortunes of
investors. Asset management companies are specialists whose main focus is
investing their clients’ money to achieve capital growth, generate increasing
income or a combination of both.
Using their expertise, they work in a way that protects the real value of their
clients’ assets against the potentially negative effects of inflation. In
Nigeria and until the recent times, asset management was not in vogue.
Most of the stockbroking firms were predominantly executioners of deals on the
trading floors and very few of them had dedicated desks for a functional asset
management services.
However, the trend has changed and the number of capital operators carrying out
the functions of asset management registered by the Securities and Exchange
Commission has increased.
Today, SEC registers the functions of a broker/dealer and Asset/Portfolio
manager separately.
According to the Managing Director of Index Asset Management Limited, Mr. Seye
Adetunmbi, those engaging the services of asset managers are many.
Adetunmbi says, “While a typical broker/dealer focuses on the timeliness of
effective execution of their clients’ mandate on the trading floor after taking
care of required interface with Registrars and Central Securities Clearing
System; an asset manager’s preoccupation is on the investment objectives of its
wide range of clients.
Continued in Page 2
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