The Nigerian Stock Exchange (“the Exchange” or “NSE”) in conjunction with Fund Managers Association of Nigeria (FMAN); Association of Stockbroking Houses of Nigeria (ASHON) and The Central Securities Clearing System (CSCS) Plc has launched the NSE Mutual Fund Trading and Distribution Platform on February 22, 2019 at the NSE in Lagos.
Welcome Address by Mr Oscar N. Onyema, OON Chief Executive Officer, The Nigerian Stock Exchange February 22nd, 2019
Good morning distinguished ladies and gentlemen:
On behalf of the council and management of The Nigerian Stock Exchange (NSE), we are pleased to welcome you to the launch of the NSE distribution/trading platform for mutual funds. Over the past 18 months, The Nigerian Stock Exchange (NSE), Central Securities Clearing System (CSCS), The Association of Stockbroking Houses of Nigeria (ASHON) and the Securities and Exchange Commission (SEC) worked closely with Fund Managers Association of Nigeria (FMAN) to attain this great landmark.
We are delighted to provide a solution that will enhance visibility for our listed funds and promote financial inclusion while stimulating retail investor participation in our market. This distribution platform is a new channel for accessing mutual funds which are listed on the NSE. This restates our commitment to provide market operators, issuers, fund managers and investors with a reliable, efficient and an adaptable platform to create a more transparent, liquid and accessible market in line
with global best practices. The platform will facilitate electronic transactions with a seamless connection between NSE, CSCS, Fund Managers and Brokers. Investors have the benefit of a single view of their mutual fund investment while being able to invest with multiple fund managers through a single broker.
This launch today provides an opportunity for the 256 brokers in the market to distribute to existing 13.9million investors accounts in CSCS and attract new investors that may be interested in gaining exposure to the capital markets through mutual funds.
In recent years, there has been a significant increase in the number of mutual funds in Nigeria, an indication of the growing interest in this investment vehicle. However, there is significant room for growth in mutual fund assets, as the ratio of these to the Nigerian Gross Domestic Product is estimated at less than 1%. As of February 18th 2019, the numbers of registered mutual funds with the Securities and Exchange Commission (SEC) stood at 76 with Net Asset Value (NAV) in excess of N600bn. Out of these registered funds, 47 are listed on the NSE memorandum listing platform. With the launch of this new distribution platform, we expect to receive more applications for listing of mutual funds. Today we will be listing four of these funds at the Exchange.
I congratulate the board and management of First City Asset Management limited and Cordros Asset Management limited for working tirelessly towards listing two funds each today- FCAM Legacy Money Market Fund and Legacy Debt fund as well as Cordros Milestone Fund 2023 and Milestone fund 2028 respectively. Today’s listing is not just about the platform but a milestone in a continuous process to be best in class in distributing your various funds to investors.
Let me conclude by expressing our gratitude to the Securities and Exchange Commission for their supervision and participation at the stakeholders User Acceptance Tests, and to Fund Managers Association of Nigeria, Central Securities Clearing System and Association of Stockbroking Houses of Nigeria for being great partners and their unwavering support and commitment towards the success of this platform. I also like to appreciate the Association of Custodians and other stakeholders for their contributions and participation.
I would like to recognize the presence of representatives from The Securities and Exchange Commission (SEC) Mr. Efiok Ekpenyoung -Efiok; The immediate past and current president of Fund Managers Association of Nigeria Dr. Ore Sofekun and Mr. Dayo Obisan; The president of the Association of Stockbroking Houses of Nigeria, Chief Patrick Ezeagu; and The Managing Director/CEO of CSCS, Mr. Haruna Jalo-Waziri. I also wish to thank Dealing Members, Fund Managers, Market
Operators, Retail and Institutional Investors, Professional Bodies here present, and the Media, for your unflinching support.
Distinguished Ladies and Gentlemen, I want to thank my team that worked on this initiative starting with the Head, Primary Markets (Mr. Tony Ibeziako) for his thought leadership; Mr. Gbenga Kolawole for doing most of the heavy lifting; our Market Services team for their various inputs; our Corporate Communications team for helping organize today’s event; and all the other internal stakeholders that contributed to making today’s launch possible. A big thank you also goes to our guests for honouring us with your presence and continued support.
Oscar N. Onyema, OON
