The role of professional investment managers cannot be overemphasized in the Nigeria’s capital market especially during an era of reforms and market instability, a renowned investment banker has said.

The Managing Director of BGL Asset Management Limited, Mrs Modupe Mujota made the assertion in Lagos on Monday during a business roundtable on the N2.5 billion Sapphire and Nubian funds being floated by her company.

According to her, mutual funds pool resources together and further diversify risk by investing in a variety of asset classes and securities and are therefore a less volatile investment option.

The BGL Asset Management boss noted that ‘’our Nubian fund intends to capitalize on the low valuations of the market’s blue chip stocks and to this end we believe we are properly positioned to aid profitable investment through proper planning and execution’’

Mujota however, explained that ‘’with our Sapphire fund, we intend to take advantage of the tremendous growth witnessed in the bond market in recent years with a Federal Government of Nigeria bond issues and various sub-national issues providing decent yields to investors’’

Two open ended mutual funds available to the public have been launched by BGL Asset Management Limited. The BGL Nubian Fund, positioned to invest primarily in the equities market, offers for subscription 500,000,000 units at N1.00 per unit.

The BGL Sapphire Fund, a fixed income fund which guarantees the principal investment, offers for subscription 2,000,000,000 units at N1.00 per unit.

Both funds are being targeted at investors interested in earning attractive returns in the medium to long term by investing in a diversified portfolio.

Speaking in the same vein, the Deputy Managing Director, Asset Management Limited, Anne Omezi, intimated that the Nubian Fund has been developed for investors with a higher appetite for risk in their investment strategy to take advantage of medium to long term growth anticipated in the Nigerian equities. market while the Sapphire Fund is targeted at investors with a lower appetite for risk in their investment strategy, given the relatively safe and stable outcome of investing in Fixed Income instruments.

Both Funds have received the final approval from the Securities and Exchange Commission. (SEC) and opened on October 11, 2010 to be offered till November 17, 2010. All mutual funds in Nigeria, like the Nubian and Sapphire Funds are regulated by the SEC. Further approval has been given to UBA Trustees Limited to act as trustees of the funds.

Mujota, however reiterated that the recent experience of investors in the Nigerian equities market highlights the importance of the role of professional fund managers.

‘’Mutual funds such as the Nubian and Sapphire Funds enable investors to diversify their risk as they invest in a variety of asset classes, encourage a savings culture and offer investors (including small scale investors) access to the expertise of professional fund managers which may otherwise have been unaffordable. We are confident that with our Nubian Fund, we will capitalize on the low valuations of the market’s blue chip stocks, and to this end aid profitable investment through proper planning and execution”.

Giving further insight to the investment strategy of BGL Asset Management Limited, Olumide Ogunsanwo, who is Head, BGL Asset Management Investment Solutions Division, added that the bond market had recorded tremendous growth in recent times. He stressed that BGL Plc had participated actively in this budding market, stressing that ‘’with the BGL Sapphire Fund, we intend to take advantage of this investment window and provide our clients with appropriate portfolio diversification based on our knowledge and expertise of the market”.

He pointed out that on conclusion of the allotment process, the funds will be listed on the Nigerian Stock Exchange (NSE). Information on the up to date valuation of the funds will be available via the NSE website, daily official list and other publications such as selected newspapers.