Agusto & Co’s 2020 Asset Management report (the Report) focuses on the activities of non-pension asset management companies in Nigeria and the various products offered in this space. The non-pension market is regulated by the Securities and Exchange Commission (SEC) and comprises over 150 operators managing collective investment schemes and segregated portfolios (on a discretionary and non-discretionary basis). The pension segment is covered in a separate report.
The Non-Pension Asset Management Industry (‘the Industry’) in Nigeria has evolved from exclusively serving high net-worth individuals (HNIs) to also catering to the mass affluent and the retail market. The Industry has thus grown to be one of the largest investment management centres in Africa after South Africa. At the end of 2019, the Industry’s total AuM stood at an estimated ₦2 trillion. The AuM of the Industry, which comprises over 150 licensed asset management firms, has grown at a compound annual rate of 19.7% in the last five years.
The industry offers relative financial stability by diversifying risks across a large range of market participants and providing an alternative to banks as a source of funding for the real economy. The ultimate goal of Industry operators remains the provision of baskets of shares, bonds and other assets such as property, which can deliver returns over many years while minimising risk exposure.
We expect the size of the Industry’s managed assets to reach the ₦2.4 trillion mark by the end of 2020.
This report is a comprehensive analysis on the Asset Management Industry in Nigeria.