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Thursday, February 20, 2020/ 08:00AM / Zedcrest /Header Image Credit:
New-age financial solutions powerhouse, Zedcrest Capital Limited today (20:02:2020) announces the launch of a wholly owned subsidiary and
new Investment/Asset Management firm aimed at digitally `democratizing investment in Africa.
The new company, Zedcrest
Investment Managers ("ZIMVEST") will introduce digital private wealth and
investment management, help clients grow wealth by beating inflation and
currency risks through multicurrency investments, through best in class
paperless processes.
According to the Founder & Group CEO of the Zedcrest Group, Saheed
Adedayo Amzat, CFA, "ZIMVEST's differentiating factor will come from the
renowned expertise of the Zedcrest group in the global financial markets. This
is evidenced by the leadership position of its global markets business, Zedcap
Partners which bagged the 2019 best brokerage service award of FMDQ OTC. The Group also has a wide distribution
experience garnered from setting up another subsidiary, Zedvance, a top-three consumer
lender in Nigeria.
The Chairman of Zedcrest Group and former managing partner of Ernst &
Young, Adebisi Sanda said: "The launch of the Asset Management business
ties in nicely with our plan to dominate every important vertical of Financial
services: our four pillars of global markets, investment management, lending
and payments. Despite some growth in the last decade, capital formation in
Nigeria is still relatively low compared to our frontier/emerging market peers.
The total AUM of the contributory pension scheme, at 10 trillion is just under
10% of GDP compared to South Africa at 63% of GDP. The non-pension AUM at about
1.2 trillion is very low and represents a clear growth opportunity, one which
we are going after."
Gbenga Adigun, the newly hired head of Asset Management who left his
posh job at one of the country's top three asset management firm, believes
ZIMVEST would leverage on the Group's remarkable capacities and capabilities to
launch the firm into the top five players in 5 years.
"I am delighted at the focus and vision I met on ground at
Zedcrest Group and excited at the unique opportunity we have to create
tremendous impact. In the coming months, we will be unveiling new well-thought-through
products to meet the investment needs of the public. We would have propositions
for the salaried employees, entrepreneurs, HNIs, corporates, governments and
family offices", Adigun said.
He also showered glowing praises on the Management of the Securities
and Exchange Commission (SEC), for the support in granting the operational
license in record time.
With the current thrust of the Central Bank of Nigeria (CBN) to drive
inclusive growth in the economy, returns have fallen tremendously as fund
managers have been locked out of the Juicy Open Market Operation market, in
favour of foreign investors who bring the much needed foreign currency inflows.
Most fund managers are expected to have negative real returns in 2020, a
situation Zedcrest attributes to the unusual dependence on risk-free government
securities investments.
A recent guideline from the CBN elongates the available CBN futures yield
curve to 5 years from 12 months. The management of Zimvest believes this is to
encourage foreign direct investment in critical sectors of the real economy and
would significantly give Nigeria a growth lifeline.
"The Nigerian rising narrative is about to be rekindled and we
believe this is the best time for us to be setting up. We have a clear
opportunity to bring alternative investments products to the market, and reduce
the focus on government securities. We would be creating products for
underlying investments in infrastructure and the agricultural value chain,"
noted Stella Duru, another Zedcrest Director.
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