Stories By Babajide Komolafe

Fund Managers Association of Nigeria (FMAN) has commenced moves to attract part of the N4.9 trillion pensions into the mutual funds industry.

President of the Association, Mr. Michael Oyebola disclosed this at a meeting of the Association in Lagos last week.

The meeting was attended by funds and portfolio managers across the country, the Securities and Exchange Commission (SEC) and the Chartered Financial Analysts (CFA) Society of Nigeria.

Listing the efforts of the Association to boost investment in mutual funds in Nigeria, Oyebola stated that with about N695 billion under management, made up about N200 billion housed under the collective Investment Scheme and       N495 billion being funds under management, FMAN has commenced strategic moves to position the association to perform fund management role in the Pension industry which under the effective and efficient regulation by PENCOM has grown into a N4.9 trillion market.

He said the Association is also working to develop a customised platform for distribution of mutual funds, adding, “This will operate as an open architecture platform that will enable members to  distribute their mutual funds in more cost efficient means.

“With the approval of the acceptance of voters’ card as a KYC document, efforts are in top gear to put together a mobile money platform that will address    the various need of member firms.”

Oyebola disclosed that the Securities and Exchange Commission (SEC) is set to enforce the Asset Managers Code recently launched by FMAN in conjunction with the Chartered Financial Analyst (CFA) Society of Nigeria,     Fund Managers Association of Nigeria (FMAN) and Pension Fund Operators Association of Nigeria (PENOP). The code he said include general principles of conduct and asset manager’s code of conduct. “Some of its provisions in relation to asset managers responsibilities to clients include, to act in a professional or       ethical manner at all times, to act for the benefit of the client, to act with independence and objectivity, to act with skill, competence and diligence, to  communicate with clients in a timely and accurate manner and to uphold the applicable rules governing capital markets.”

On her part, Mrs Sade Odunaiya, President CFA Society Nigeria presented a paper on Global Investment Performance Standards (GIPS), and efforts to ensure that Nigeria is listed among the 30 developed and developing countries who have complied with the standards.

She said the GIPS was created by the CFA instate which oversaw the content creation of its framework due to the absence of a benchmark for the calculation, and          presentation of firms investment performance history.

She stated that GIPS was developed as a voluntary set of standard that addresses the need for a practitioners- driven ethical principle and standardized, industry wide approach to calculating and reporting investment result; consistency in reporting; and need for industry wide comparability

She added that currently the CFA Society of Nigeria, PENOP and FMAN are the members of the GIPS sponsoring body in Nigeria known as Nigeria Investment Promotion Commission (NIPC).