The Nigeria Sovereign Investment Authority, NSIA has appointed Stanbic IBTC as its local custodian. According to a statement by the authority at the weekend, Stanbic IBTC would work alongside JP Morgan, NSIA’s global custodian.
The NSIA said that Stanbic IBTC was chosen due to its experience as “a provider of integrated financial services including custody, asset management, corporate banking and risk products and services, amongst others”.
NSIA had at the middle of last week announced Goldman Sachs, Credit Suisse and UBS as asset managers for its Stabilization Fund.
The Managing Director, Mr. Uche Orji, explained that UBS was selected to manage the US Treasury Bond portfolio, while Goldman Sachs and Credit Suisse would manage the US corporate bond portfolio.
“The Stabilisation Fund is intended to act as a buffer against short-term macro- economic instability. As such, the Fund’s assets will be invested conservatively, with capital preservation in nominal terms being of primary importance. Given the short- term nature of the Fund’s potential liabilities, the Fund is restricted to investing in investment grade sovereign and corporate fixed income assets”, the MD said.
He explained that the initial Benchmark is a blend of 25%, Barclays 1-3 year US Treasury Bonds and 75% Barclays 1-3 year US Corporate Bond Index.
Mr. Orji added, “this marks another important milestone for NSIA and follows a comprehensive process of review and evaluation of world class candidates for this mandate. The appointment of three leading global investment banks to assist with the management of the Stabilization Fund – drawing on the particular expertise of each to match our investment management requirements – will help us achieve the economic policy objectives set for NSIA and attain the highest standards of financial stewardship to which NSIA aspires .”