Collective Investment Scheme in Nigerian Capital Market: An Overview

Proshare


March 26, 2013/ The Analyst


Collective Investment Scheme is an arranged pool of funds managed on behalf of investors by a professional money manager which may invest in; Ventures capital, Portfolio of stocks Bonds and other securities. Subscribers in investment scheme receive shares or units that represent the investor’s pro-rata share of the pool of fund assets.
 

From the regulatory point of view, The Investments and Securities Act (ISA) No. 29 of 2007 (Section 153) defines Collective Investment Scheme as “a scheme in whatever form, including an open-ended investment company, in pursuance of which members of the public are invited or permitted to invest money or other assets in a portfolio, and in terms of which two or more investors contribute money or other assets to and hold a participatory interest; the investors share the risk and benefit of investment in proportion to their participatory interest in a portfolio of a scheme or on any other basis determined in the deed, but not a collective investment scheme authorized by any other Act”.
 

Various types of Collective Investment Schemes exist in the Nigerian market and they include those listed in the table below;



 

Latest data gathered on the net asset value (showing the true worth of the investment, of collective investment scheme in the Nigerian Market) reveals that Stanbic IBTC Nigerian Equity Fund leads the pack with a net asset value of N14, 809.13m, closely followed by Stanbic IBTC Money Market Fund and Union Homes REITS with net asset value of N14, 253.72m and N13,650.00m respectively.

 

 

EQUITY BASED FUNDS 

The equity based funds is the fund with the highest number of funds; eighteen (18) in number. Out of the eighteen different funds, sixteen (16) of them have positive net profit figures while two has negative net profit figures. Stanbic IBTC Nigerian Equity Fund has the highest net asset value while BGL Nubian Fund has the least.

 
 

 

MONEY MARKET FUND 

The money market fund has just three (3) funds with all have positive net profit figures. Stanbic IBTC Money Market Fund has both the highest net asset value and net profit figure.

 
 

 

Bond Fund  

The Bond Fund has a total of nine (9) different funds with all having positive net profit figures. Stanbic Guaranteed Fund has the highest net profit figure; closely followed by Zenith and FBN Income Funds while Kakawa Guaranteed Income Fund has the highest net asset value.

 

    

 

REAL ESTATE FUND  

The real estate fund has just two funds with both having positive net profit figures while Union Homes REITS has the highest net asset value. 

 

 

BALANCED BASED FUND  

This fund with eight (8) different funds has six (6) of such funds having positive net profit figures while the remaining two has negative net profit figures. FBN heritage fund has the highest net asset value.
 



   

ETHICAL FUND  

The ethical fund has four (4) different funds with all posting positive net profit figures. Stanbic IBTC Ethical Fund tops both on net asset value and total net profit figures.
 

 

 

SECTOR FUND  

The sector fund has only DVCF Oil & Gas Fund on its schedule with positive total net profit figure. 


 

   

UMBRELLA FUND  

The Umbrella fund has three (3) different funds on its schedule with Stanbic IBTC Absolute fund having the highest net asset value. 
   

 

Exchange Traded Fund  

The Exchange Traded Fund which is presently limited to the trading of Gold has just New Gold ETF on its schedule. The fund will soon be diversified as the Exchange plans to list more ETFs with various assets.
 

 

 

SEC’s SANITIZATION EFFORT  

As part of the measures to professionalize the management of collective investment schemes, the Securities & Exchange Commission in a proposal considered requiring fund managers to attain certain professional qualification and as well adopt international standards for reporting.


Another point to be considered is the distribution and sales points of the funds. In the Indian market, investor no longer pays the selling cost when disposing their funds while this is still an issue in the Nigerian fund market.
 

In Late 2012, the Securities and Exchange Commission disclosed that forty (42) companies are registered to operate Collective Investment Scheme in the Nigerian Capital Market so that potential investors could invest in any of the funds for wealth creation and value appreciation.
 

LIST OF SEC APPROVED FUNDS, THEIR FUND MANAGERS AND WEB ADDRESS AS AT SEPTEMBER 2012    

   
 

  

MONTHLY INVESTMENT SCHEDULE FOR OCTOBER 2012


 

 
 

NB: We encourage fund managers to kindly send in details of their funds and latest financials to help us improve on the report. Information published here relates to publicly available information collated and the omission of any fund should not be construed as an indication of or an opinion on the fund or its fund managers. All enquiries should be sent to analyst@proshareng.com 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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