Agusto & Co’s 2024 Asset Management Report examines the activities and products of non-pension asset management companies in Nigeria, regulated by the Securities and Exchange Commission (SEC). This industry includes over 108 operators managing collective investment schemes, segregated portfolios, and alternative assets, with a separate report dedicated to the pension industry.
In 2023, the Nigerian asset management industry demonstrated resilience through innovative financial products and effective asset diversification. Total assets under management (AUM) increased by 44% to ₦5.9 trillion, driven by the growth of dollar-denominated portfolios and increased participation from retail and institutional investors.
The industry’s offerings are divided into three segments: Collective Investment Schemes (CISs), Segregated Portfolios, and Alternatives. CISs, or mutual funds, pool clients’ funds for management. Segregated portfolios include privately managed discretionary and non-discretionary funds, along with other private collective investment schemes not listed on the SEC’s website. Alternatives encompass non-traditional assets such as REITs, private equity, and infrastructure funds.
In 2023, segregated portfolios surpassed collective investment schemes, contributing 57% of the industry’s AUM as investors shifted away from the more restrictive and conservative CISs, which accounted for 35%. Alternative assets, including publicly-listed private equity, REITs, and infrastructure funds, made up 8% of managed assets.
Agusto & Co. forecasts robust growth in the industry’s managed assets, projecting an average annual growth rate of 32.4% over the next two years, albeit at a slower pace compared to the 45.8% average for the previous two years. We anticipate that the industry’s managed assets will surpass the ₦10 trillion threshold by 2025. This growth is expected to be driven by higher yields, increased investments from pension fund administrators and institutional clients, and the strategic allocation of funds in international money markets to mitigate the effects of the depreciating local currency. However, it is crucial to note that a deterioration in Nigeria’s macroeconomic fundamentals could significantly influence these growth projections.
This report provides useful insights into various aspects of the Nigerian Asset Management Industry. Key benefits of the report include:
