By Peter OBIORA InvestAdvocate
Abuja (INVESTADVOCATE)-Collective Investment Schemes (CIS) in Nigeria currently stands at $1.0 billion, Louise Eni-Umukoro, director, CIS Securities and Exchange Commission (SEC) said on Friday at the 2014 SEC Journalists academy in Abuja Nigeria.
The SEC’s director, CIS in her lecture titled “Regulation of Collective Investment Scheme’’ noted that current value of the world’s CIS stands at about $30 trillion; while that of Nigeria is $1.0 billion, ‘’this is still minute compared to the global record,’’ she said.
Eni-Umukoro disclosed that as at 2002, there were only 14 funds; but currently there are about 55 funds in Nigeria compared to thousands in the developed world; especially the United States (US).
In her presentation, she said in the last 10 years, value of CIS has hit 112.2 percent; ‘’ ‘this translates to an annual growth rate of 11.2 percent,’’ the SEC director CIS added.
She disclosed that custodians operating in the industry are required to have N15 billion capital base to operate.
Olumide Oyetan, chief executive officer (CEO) of Stanbic Asset Management Ltd in his presentation titled ‘’Collective Investment Schemes-Prospects and Challenges: India and Nigeria as Case Studies’’ affirmed that global assets in mutual fund increased from $4.0 trillion in 1993 to $28.9 trillion in September 2013.
‘’Collective Investment Scheme assets worldwide increased 3.8 percent to $32 trillion an all-time high at the end of the second quarter of 2014,’’ he said.
According to Oyetan a breakdown of the global CIS by region shows that Americas have 56 percent market share, ‘’this is largely due to activities in the US,’’ he said.
Europe has 32 percent, while Africa, Asia/Pacific share only 12 percent market share in global CIS. ‘’ Percentage of US mutual fund asst stands at $17.9 trillion,’’ the CEO of Stanbic Asset Management added.
The encouraged investors to consider the CIS a best option for their alternative investments; affirming that awareness needs to be intensified in the industry to enable Nigeria’s see the advantages and benefits in the CIS.
