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SEC raises alarm over illegal capital market operator


The Securities and Exchange Commission, SEC, has raised an alarm over the activities of an illegal capital market operator — Global Growth and Income Limited — for soliciting deposits from members of the public for the purchase of shares on their behalf.

The company, operating out of Number 19, Bode Thomas Road, Onipanu, Lagos, according to a statement by SEC, is calling for deposits from unsuspecting members of the public purporting to purchase shares on their behalf.

SEC disclosed that the company is not registered and licensed to carry out any capital market activities. Therefore, it said, “Investors wishing to purchase shares or invest in any financial product are hereby advised to contact investment advisers or the Commission to verify the status of the company/institution before making such investments.

SEC had in May 2012, issued a similar warning on an illegal fund manager, Finance and Commercial Services Limited – FCSL.

FSCL had through a newspaper advert, announced the introduction of four funds into the market, namely, Evergreen Ethical Fund, Beta Growth Fund, Diamond Fund and Beautiful Minds Education Endowment Fund.

According to SEC, the said Funds are illegal, as neither the Fund nor the Fund Managers are registered with the Securities and Exchange Commission, stating further that anyone who invests in these Funds does so to his/her own risk.

Meanwhile, the value of mutual funds on the memorandum segment of the Nigerian Stock Exchange, NSE, depreciated last week by N3.155 billion.

Specifically, the Net Assets Value, NAV, of the 45 mutual funds, according to data obtained from SEC, declined by 3.49 per cent to close at N87.265 billion on Friday, July 27, 2012, from N90.42 billion at which it started the week, Monday, July 23, 2012.

Equity-Based funds recorded the highest Nest Asset Value in the period under review, accounting for 48.07 per cent of the total NAV, with N41.949 billion. This, however, represents a decline of 0.44 per cent from N42.135 billion recorded on Friday, July 20, 2012.

Real Estate Funds followed with a Net Asset Value of N18.326 billion, representing 18.71 per cent of the total NAV, while Balanced-Based Funds accounted for 10.32 per cent of the total sector NAV with N9.008 billion.

Union Homes Real Estate Investment Trust Scheme, managed by Union Homes Saving and Loans Plc, recorded the most NAV of N14.09 billion; Stanbic IBTC Nigerian Equity Fund, managed by Stanbic IBTC Asset Management Limited, followed with a NAV of N12.582 billion; while Stanbic IBTC Money Market Fund, also managed by Stanbic IBTC Asset Management, recorded a NAV of N8.625 billion.

Asset and Resources Management Company Limited’s ARM Discovery Fund recorded a NAV of N4.817 billion, FBN Capital Limited’s FBN Heritage Fund posted NAV of N4.295 billion; and SIM Capital Alliance Fund recorded NAV of N3.609 billion.

Others include: Zenith Capital Limited’s Zenith Equity Fund N3.546 billion, FSDH Asset Management Limited’s Coral Growth Fund N3.262 billion, Stanbic IBTC Ethical Fund N2.888 billion and ARM Aggressive Growth Fund N2.579 billion.


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