This represents a remarkable 29.6% increase over five months, rising from N2.26 trillion at the end of December 2023 to N2.9 trillion by the end of May 2024, which could also be partly attributed to the impact of naira devaluation on dollar-denominated funds.

Meanwhile, the growth trend highlights a strategic shift by Nigerian investors seeking to hedge against rising inflation and exchange rate volatility. The inflow into mutual funds is particularly noteworthy as investors look for high-yielding low-risk opportunities, gravitating towards fixed-income and dollar-denominated instruments.

For instance, the recent Treasury bills auction closed at a discounted rate of 20.67%, offering an annual yield of approximately 24% to investors. This attractive yield contrasts with the downturn in the local equities market, which has seen a quarter-to-date loss of 5.03% by the end of May although a year-to-date gain of 32.8%.

The growing preference for mutual funds amid market volatility underscores a broader strategy among Nigerian investors to seek stability and higher returns in a challenging economic environment.

This article analyses the best performing mutual funds across four categories based on yields as of the end of May 2024 based on data from Fund Managers Association of Nigeria (FMAN). The mutual fund categories include, money market fund, dollar mutual fund, fixed income fund, and halal mutual fund.

Noteworthy, is the domination of the likes of Norrenberger, Emerging Africa, and Meristem in the ranking.

Best performing money market funds

Money market funds are mutual funds that invest exclusively in short-term debt securities like treasury bills, bank placements and commercial papers. These funds provide investors with a low-risk option for short-term cash management and capital preservation.

As of 31st May 2024, the average yield on money market funds stood at 17.19%, representing a significant jump compared to 10.2% recorded as of the beginning of the year. Below are the top performers based on yield as of the end of May 2024.

• Emerging Africa MMF – 20.96%
• Coral MMF – 20.21%
• Meristem MMF – 20.18%
• FBN MMF – 20.05%
• Norrenberger MMF – 19.96%

Best performing dollar mutual funds

Dollar mutual funds are collective investment schemes that invest in dollar-denominated financial assets, giving investors exposure to international markets and currency diversification.

These funds provide an opportunity for investors to hedge against currency risk and take advantage of global investment opportunities in foreign currencies. Data shows that the yield declined from 7.7% as of December ending to 5.46% by the end of the review period. Below are the best performing dollar-denominated mutual funds:

• Norrenberger Dollar Fund – 10.07%
• Emerging Africa Eurobond – 9.62%
• Meristem Dollar Income Fund – 9.22%
• CHD Nigeria Dollar Income Fund – 9.08%
• Stanbic IBTC Dollar Fund – 7.43%

Best performing fixed income funds

Fixed income funds are mutual funds that primarily focus on debt securities. They offer investors a diversified portfolio of bonds and other fixed-income instruments, aiming to generate stable income streams while preserving capital.

Average yield on fixed income mutual funds rose to 8.31% by the end of May 2024, almost 200bps higher than the 6.24% recorded as of the beginning of the year.

• Emerging Africa Bond Fund – 19.49%
• Meristem Fixed Income Fund – 16.19%
• Norrenberger Turbo Fund – 13.6%
• Chapel Hill Denham Nigerian Bond Fund – 11.76%
• Cardinal Stone Fixed Income Alpha Fund – 11.75%

Best performing Halal mutual funds

Halal mutual funds are collective investment schemes that follow the principles of Islamic finance by investing solely in Shariah-compliant instruments. These funds provide investors with the chance to align their investments with their ethical and religious beliefs, while pursuing competitive returns in accordance with Islamic principles.

The average yield on halal mutual fund stood at 7.97% as of the end of May 2024.

• FSDH Halal Fund – 12.58%
• Norrenberger Islamic Fund – 11.42%
• United Capital Sukuk Fund – 9.82%
• Codros Hala Fixed Income Fund – 9.69%
• FBN Halal Fund – 5.8%

Why consider mutual funds

Mutual fund investments offer several advantages for individuals. Firstly, they allow investors to diversify their risk across a variety of assets. Additionally, mutual funds are professionally managed, providing investors with expert supervision and advice. Furthermore, they offer flexibility and convenience, catering to different risk tolerances and investment objectives.

Source: Nairametrics

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Wealth preservation involves a strategic approach to safeguarding and growing one’s assets over time, protecting them from the negative forces of market volatility and unforeseen events.

Economic uncertainty refers to a situation in which the future economic environment is difficult to predict and there is a high degree of risk or unknowns involved. This can be caused by a variety of factors, including political instability, changes in government policies, micro- and macro-economic factors, and market fluctuations.
Economic uncertainty can lead to a decrease in economic activity as people and businesses become more risk-averse. The identified sources of economic policy uncertainty in Nigeria are frequent changes in the apex bank’s (Central Bank of Nigeria) policy, unexpected changes in government policy, political interference, an unexpected fall in the global oil price, and a recession.
In preserving wealth during economic uncertainty, one must consistently sustain the purchasing power of their wealth over the long term and ensure it is available for transitioning to future generations.
The major strategies used to preserve wealth in uncertain times are:

1. Financial Planning and
2. Portfolio Diversification

Financial Planning

Financial planning is a tool used to accumulate and preserve wealth. It involves an assessment of your current financial situation and creating a plan, specifically around the management of finances and preparation for the potential costs and issues that may arise.
Creating a financial plan is important because it allows you to make the most of your assets and gives you confidence that difficulties along the way will be surmounted.
Financial planning during uncertainty, particularly inflation, can be quite challenging; all it takes is discipline and consistency.

Steps to Financial Planning

1. Find a certified financial advisor. Consult with a financial advisor who can provide personalised guidance based on your specific financial situation and goals.
2. Review/Assess your current financial situation. This is required to evaluate your current financial standing. It includes the calculation of your net worth, and tracking your income, expenses, debts, and investments. Revisit your budget and look for expenses that can be reduced or eliminated.
3. Identify your goals – Your goals must be SMART 
   Specific: Clearly state your goal e.g. I will save N1m in 6 months which is 20% of my salary.
   Measurable: Ensure you can measure success. For instance: save N167,000 monthly.
   Achievable: Set goals you know you can achieve e.g. It is 20% of my salary and it is achievable.
   Releant: Set goals relevant to your life e.g. This helps with the payment of my house rent.
   Time-Bound: Set a deadline for completion e.g. 6 months.
4. Design a plan – Set up a structure. Do I invest in a mutual fund, or do I buy stocks? Do I set up a monthly direct debit?
5. Execute the plan – Set up an emergency fund by investing in the mutual fund. Set up a life and health insurance plan.
6. Review and refine – It is advisable to have a quarterly review of your investments and plan.

Portfolio Diversification

Portfolio Diversification is important in considering investments that have the potential to outperform inflation. Some of these investments include stocks, real estate, and commodities, and have been proven over time to protect the purchasing power of your assets.
Review your portfolio regularly and adjust your asset allocation when needed to stay on track toward achieving your financial goals.

Looking to speak to a financial advisor to help you preserve your wealth? Call us on 0700-NORREN, 234 (0) 908 781 2026 OR send an email to customerservice@norrenberger.com.

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The Nigerian stock market posted a record 45.9 per cent growth as measured by the Nigerian Exchange Limited All-Share Index in 2023. The performance came to many analysts as a very big surprise. What can you say was responsible for this performance?

The year 2023 was indeed a mixed bag of emotions for investors in the Nigerian Stock market. Reason being that we had just come out from a pre-election year in 2022 where stock prices of major blue-chip companies were trading below their fair values. The apprehension of an election season 2023 also came with its negative sentiments as investors adopted a cautious approach to investing, shorting on stocks for liquidity preference. Participation of foreign portfolio investors was also on a low, so the market was starved of the required liquidity needed to drive demand and consequently, stock prices dipped. However, post 2023 elections and the fact that all predictions of doom and gloom came to nullity, this boosted confidence of investors in the market as once again, Nigeria had proven to be resilient politically despite her many challenges. The inauguration speech of the President of the Federal Republic of Nigeria also came with some pro-market sentiments that caused an instant positive reaction in the market and saw an influx of investors take long positions in fundamentally sound stocks which invariably caused a rally for the most part of the year. Policy statements around petrol subsidy removal, unification of the exchange rate etc. triggered investors appetite for these fundamentally sound stocks which were trading below their fair values. One other critical factor that drove activities in the stock market during this period was the dwindling interest rates in the money market, skyrocketing inflation rates nearing the 30% mark. In order to hedge again this rising inflation rates, investors turned to the stock market as that is a market that potentially can provide returns that exceed inflation rate and therefore help preserve investors capital.

It is often said that the stock market is the mirror through which an economy of a nation could be seen. But given the state of the economy in 2023 and the performance of the stock, how would you assess the correlation?
This assertion is quite apt and to a lot of market watchers, a mystery. In normal situations, the stock market actually is a barometer of the economy, but in our own peculiar circumstance, the disconnect rises from the fact that the factors driving activities in the stock market are at variance with what is happening in the real sector of the economy. All the factors earlier mentioned that drove stock prices could easily be predicted as a natural consequence to the policy statements made by the federal government. The market would always react to any information, be it good or bad. However, the reality in the real economy is that factors like rising inflation would still pose a significant challenge to the value of cash in the pockets of the average Nigerian. Issues around the country still being a largely import dependent nation that does not produce most of what it consumes persists. With the weakening Naira, it is always going to be a tough one for households and businesses. The purchasing power of the average Nigerian has been weakened significantly and consequently increased the misery index. Despite the bullish run in the stock market, the agelong fundamental issues plaguing the nation persists and this is a reason for the disconnect between investors excitement in the stock market versus the difficult times being experienced in the real sector of the economy.

Surprisingly, the market has maintained a bullish trend in the first month of 2024, how long can this positive trajectory continue. What are the sustaining factors?
The bullish run experienced in the second half of 2023 has unsurprisingly continued in this first quarter of 2024, one of the reasons being that following the passing of the 2024 budget into law, it is expected that government spending would stimulate economic activities in the various sectors, of which companies listed on the Stock Exchange in those sectors will be the better for it. Also, the earnings season are upon us and there is the anticipation by investors of good corporate actions that may arise from better-than-expected full year results. The activities of institutional investors such as the PFAs, Asset Management firms etc. has also helped drive activities in the market. Finally, the major participants in the market now are domestic investors and the market is yet to see an influx of foreign portfolio investors. Positions are also being taken on the mid to long term in expectations of another round of market rally when the foreign funds flow into the market. So, I expect to see periodic selloffs by investors who have hit their expected returns in the market, which would cause stock prices to dip, but then present an opportunity for bargain-hunters to take position in the market.

Despite the bull run in the secondary segment of the stock market, there was no corresponding upsurge in the primary market activities. Why was it so?
Sadly, activities in the primary market had not been as impressive as those in the secondary market. As a matter of fact, the market even experienced the delisting of about five companies in 2023. This could have been attributed to strategic decisions of the various companies and they cannot be begrudged for taking decisions in their best interest. Despite the recent bullish run in the market, there are investors who are still pessimistic about the market due to previous experiences and as such, Issuers fear that coming to the primary market to raise capital may not be so successful due to some investors’ apathy for the stock market. The fear of an equity capital raise failing is a major reason Issuers would rather go by way of debt issuances. However, there is an expectation that more primary market activities would occur this year by way of Rights Issues, Initial Public Offerings, Mandatory Take Overs etc. Of particular interest, would be to see the Dangote Refinery and maybe the NNPC get listed on the Stock Exchange. This will increase the market depth and improve investors’ confidence in the local bourse.

Although raising funding from the equities market is said to be relatively cheaper than the debt market, why are many companies not taking advantage of this to raise funds through equities issuances?
As earlier mentioned, one reason for the dwindling equity capital raise in the primary market is due to the fear of failure by Issuers. No company wants to come to the market to raise capital by parting with some of its shares and to not get it fully subscribed to. This can easily put the company in bad light that investors are not confident in its capacity to perform and are therefore not attracted to acquiring their shares. Also, equity capital raise means such a company is introducing many other investors to its company and public scrutiny of its performances would increase. For a company that wants to stay private, an equity capital raise may not be an option of them.

Despite the good performance of the stock market in 2023, which has extended to 2024, the market remained under patronized by investors considering our population, why is this so?
One major reason is that so many investors who had played in the stock market pre-2008 global meltdown, were not particularly savvy in the workings of the stock market. There was a massive bandwagon effect between 2006 and 2007, where investments were being made in the market without proper knowledge of how the market worked. Thus, during the 2008 global financial meltdown and the extended bearish run in the Nigerian Stock Market, some investors have not fully recovered from that experience. As a matter of fact, those who did not even play in the market then are using the stories of others to stay off the market. We also cannot discountenance the general economic hardship and its attendant effect on the purchasing power of citizens. It therefore is a tough ask to get people who are still trying to meet their basic needs, to part with scarce cash to invest in the stock market, which despite its high returns also comes with a high volatility.

What do you think should be done to make the market more attractive for investors because less than 10 per cent of the Nigerian population play in the market?
I believe a lot more of investor education is required across all strata of the populace. People need to understand the concept of investing in the stock market as a long-term investment, which over time can generate returns that hedge against inflation, thereby preserving their capital and creating wealth. Investors’ confidence would also be boosted when they are sure that there is a water-tight regulatory framework to protect their investments from any sharp practices in the market. This we must give credit to our apex Regulator, the Securities and Exchange Commission (SEC) and the Nigerian Exchange Group (NGX). Furthermore, more stockbroking firms must adopt the use of advanced technology in engaging with their clients, to provide a seamless engagement between their clients and the market. Finally, the issue around unclaimed dividends must be addressed as a matter of urgency, as it casts doubt in the minds of investors who invest in the market and have difficulties in getting their dividends.

Specifically, what is Norrenberger Securities Limited doing in this regard. Do you have products or strategies to onboard investors into the market?
Response: This is most definitely one of our unique selling points in this space, as we tout ourselves as simplifiers of wealth creation. At Norrenberger Securities Limited, we had identified this issue of unclaimed dividends as a major challenge for existing and intending investors who think that they may not get their dividends from their investments. Therefore, we created a service called the Norrenberger Heritage Service, where for all subscribers to this service, we help you recover all unclaimed dividends and even shares you did not know their whereabout. Some family members of a deceased loved one may not know that they may have hidden treasures in the large pool of unclaimed dividends more than N190 billion. At Norrenberger, we help clients unlock those treasures and work with them through the entire process of recovery and transfer of the assets to the beneficiaries of those investments. At Norrenberger Securities Limited, most of our engagements with our clients is technology driven. You can start the onboarding process online and buy and sell stocks online too. For every client of ours, we grant them access upon request to the Direct Market Access (DMA), which enables clients trade in the stock market themselves via their mobile devices or computers. We also believe in educating students in primary, secondary and tertiary institutions of learning to understand the fundamentals of financial management and investment. In this regard, we have a School Investment Club wherein we partner with a couple of schools across the federation to set up this investment club. This is to ensure that the younger generation learn early the habits of better managing their finances, which invariably will help guarantee parents that their wealth will be well managed in their absence. To further promote financial inclusion, we have enlightenment campaigns around marketplaces and associations of artisans.

What do you think is responsible for the impressive financial performance of most of the companies amid challenging environments. Are the results real?
The impressive financial performances so far released by some firms howbeit their interim results could be attributed to more companies better managing their overheads. So many companies are increasingly adopting a hybrid work model or completely going remote, thereby cutting a massive cost on energy, office maintenance etc. Some other companies are posting extraordinary incomes resulting from valuation of their FX investments, due to the devaluation of the Naira. In some other cases, a lot of domestic companies have enjoyed increased patronage due to the FX scarcity and ballooning exchange rate, which has made importation of goods and services more expensive. So, consumers have turned to more local options of similar goods and services, which they hitherto may have had to patronize those from abroad. This particularly is the case with some listed companies in the agricultural, pharmaceutical, telecommunication, construction, and financial sectors of the economy.

What will be your projection for the market at the end of 2024?
Year to date, the Nigerian Stock market has broken several barriers in terms of the NGX All Share Index (NGX ASI) hitting new milestones and currently standing above the 100,000 psychological mark for the first time in its history. This has seen the Nigeria Stock market as the best performing market in the world, followed by Argentina. I believe this trend will continue due to a couple of factors such as the activities in the money market, that is declining rates, investors who are rate-sensitive and have some level of risk appetite, would opt for the stock market as an alternative. Should the inflation figures keep trending upwards, the natural instinct for investors would be to try to hedge against it and the stock market presents a good opportunity to achieve that. Also, at some point in the year, all things being equal, there most likely would be an inflow of foreign portfolio investors into our market, especially with a stability in our FX regime. This will help drive demand for stocks and subsequently another round of bullish momentum. Overall, the year is expected to see the market offer returns above those of any fixed income instruments, but investors must also act with a cautious sentiment. Clear investment objectives must be set, with respect to entry and exit plans. Greed must be avoided in this market at all cost.

Source: THISDAY

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The esteemed list of ten projected by Daily Trust in the publication includes companies that have demonstrated exceptional growth, strategic vision, and a commitment to pushing the boundaries of their respective industries. Norrenberger’s place in the list reflects its consistent dedication to delivering unparalleled services and solutions to its clients.

With a track record of success and a reputation for excellence, Norrenberger has earned its position among the elite companies in the Nigerian market. The company’s forward-thinking approach, resilience in operations and its focus on client satisfaction has set it apart as a beacon of success in the business landscape.

Group Managing Director/CEO, Norrenberger, Tony Edeh expressed gratitude for the recognition, stating, “We are honoured to be among the Top 10 Companies to Watch in 2024. This acknowledgment reflects the hard work, dedication, and innovative spirit of our talented team. We remain committed to pushing the boundaries and setting new standards within our industry.”

As Norrenberger continues to grow and evolve, the company remains dedicated to its core values of integrity, excellence, and client satisfaction. The recognition as one of the top companies to watch in 2024 serves as motivation for Norrenberger to continue its pursuit of excellence and to make significant contributions to the industry.

About Norrenberger:

Founded in 2017, Norrenberger is a financial services group that provides bespoke financial solutions that add value to our individual and institutional clients. With a team of experienced professionals, Norrenberger offers a comprehensive range of services, including asset management, private equity, development finance, investment banking, insurance, pensions, securities trading, fintech and digital banking. We are guided by our mission to positively unlock the opportunities in society for our clients and stakeholders. By 2025, we hope to have delivered at least one financial solution to every household.

Our component companies are licensed, authorised, and regulated by either the Securities & Exchange Commission (SEC), Central Bank of Nigeria (CBN), Nigerian Exchange Limited (NGX), National Pension Commission (PenCom) or National Insurance Commission (NAICOM).

Source: DailyTrust

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Key Highlights of 2023

Despite facing adversities, the equity market showcased a remarkable 45.89% growth in 2023 compared to 19.98% growth recorded in 2022. This was driven by strategic government policies and resilient quarterly performances by companies. Positive investor sentiments trailed President Bola Ahmed Tinubu’s reforms, steering the market’s upward trajectory.

The performance of the market was largely driven by the oil/gas and the banking industry, both of which printed over 100% in returns and interestingly were sectors of major reforms in the review year. The banking and oil/gas indexes gained 114.9% and 125.54% respectively in the review year. It is also worth noting that all the sub-indices of the market aside from the AseM and Sovereign Bond recorded positive returns in 2023.

Insights from Industry Expert

Capital market operators and Chief Research Officers highlight the positive impact of government policies, the impressive performance of quoted companies, and increased market activities as key contributors to the market’s resilience

Challenges Faced

Monetary policy and exchange rate challenges, along with the delisting of major players, presented hurdles that the market courageously overcame.

2024 Projections

With an expected sustained growth profile, industry experts anticipate new listings and increased primary issues, particularly in the financial services sector.

Positioning for 2024: Unlocking Growth Opportunities

Nigeria’s stock market, soaring by 36.61% YTD, stands as the world’s best in 2024. Seize the chance to position yourself strategically for the impending market recapitalization.

Reasons to Invest

• Diverse Gains: From banking to consumer goods, sectors are flourishing, building on the 45.90% return in 2023.
• Expert Insights: Analysts project sustained growth in telecoms, banking, consumer goods, industrials, and oil and gas. Embrace fundamentally sound, dividend-paying stocks.
• Strategic Catalysts: Key factors like Dangote Refinery, Banking Recapitalization, and Corporate Actions offer opportunities for savvy investors.
• FPI Potential: Anticipate the return of foreign portfolio investments in 2024, capitalising on entry opportunities amidst potential market tightening.

Embrace the Future

Whether you are a seasoned investor, a returning participant, or a first-time investor, the Nigerian equities market invites you to embark on a journey of growth and prosperity in 2024.

Get in touch.

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One of the major attractions for investments in any country is the stability of its forex market. In this interview, the Business Head, Asset Management at Norrenberger Financial Group, Pabina Yinkere highlights why the Central Bank of Nigeria should intensify efforts to clear backlog of forex and ensure liquidity in the market.

With the forex unification and instability in the market, do you see it affecting investment opportunities in Nigeria?

For many years, the market has been calling for a reform of Nigeria’s Forex market that will engender liquidity and price discovery. A liquid and transparent Forex market is a key requirement for capital formation and economic growth in every economy. Sadly, in the last couple of years, Nigeria faced a major Forex crisis which stifled economic growth and dented investor confidence. On 8 June 2023, the CBN announced the collapsing of all Forex windows into NAFEM (previously NAFEX) with a removal of the hard peg on Naira trading within the official market, which led to a 40% weakening of the currency.

The development was initially cheered by markets as it underpinned strong investor expectations and led to the bull run in the Stock Market. However, the subsequent reality of low liquidity in the Forex market ignited a subsequent round of depreciation, extended the gap between the parallel and official rates and dented investor optimism. As long as this Forex uncertainty and overhang of unmet backlogs remain, investors will remain cautious about investing in Nigeria. While recent moves by the CBN to clear backlogs are welcome, we believe investors would like to see an improved level of Forex liquidity and positive market signalling to fully accept Nigeria as the alluring investment destination it once was.

How would you assess investment opportunities in Nigeria?

Nigeria remains a potential investment haven. The strong, youthful population and the diversified nature of our economy with various untapped natural resources make Nigeria an attractive economy cum investment opportunity. Many sectors within the country are in their infancy, suggesting that there is room for much growth. Nigeria’s per capita consumption of so many items underscores the huge investment potential there is. The Nigerian capital market is positioned to support this growth, but some hurdles need to be cleared to unlock this alluring potential.

How would you access the performance of Norrenberger financial group in the year 2023?

2023 was a defining year for Norrenberger. In March, the Group announced the acquisition of a 60% stake in The Infrastructure Bank (TIB) to drive our development objectives. In September, we received the prestigious certification as a Great Place To Work (GPTW), validating the tenets of our core values, FIRST which are friendliness, innovation, responsiveness, simplicity and trust – values which are deeply embedded in the Norrenberger culture. In November, we successfully launched the Norrenberger Turbo Fund (NTF) – a fixed income fund to provide subscribers with competitive returns in the fixed income market. In December, to commemorate our 5th Anniversary, we launched the Norrenberger Entrepreneurship Fund (NEF) to empower aspiring young entrepreneurs, targeting youth corpers. During the year, we recorded impressive strides with the Norrenberger Dollar Fund (NDF) and the Norrenberger Islamic Fund (NIF) which were both among the fastest-growing mutual funds in the market. In terms of performance, our mutual funds ranked within the top quartile as some of the highest yielding in their respective categories. In all, we strengthened our position in the industry as a top 15 Mutual Fund Manager and our overall Assets Under Management (AUM) rose by 60% in 2023. This is a testament to our clients’ faith, trust and acceptance of the Norrenberger brand.

With strong competitors in the market, what have you done differently to cement your place in the financial space?

At Norrenberger, we have deliberately created investment options across various asset classes to ensure that we give our clients the best options to diversify their investments – whether we are talking about low-risk money market exposures, higher yielding fixed income investments, investment in stocks, alternative asset exposure or hedging against currency risk and inflation with foreign currency denominated investment options. We can create a portfolio that suits you with our array of competitive-yielding investment products.

How do you think Nigeria can boost the investment landscape and attract both domestic and foreign investments?

I believe the very first focus should be on establishing macroeconomic stability. The government needs to set a vision of the destination where it wants to take Nigeria, sell this vision to its citizenry, and communicate the short, medium and long-term imperatives to arriving at this destination. The high inflation and currency challenges must be addressed to stir investor confidence.

We need to see policy effectiveness and consistency, efficient allocation of capital across public and private sectors, well-enshrined governance at all levels, security of lives and property and development of human capital. Also, it doesn’t have to be perfect. Once we start ticking some of these boxes, you are bound to open up the economy and attract investments.

Norrenberger has a goal to create financial solutions for every household by 2025. How do you intend to achieve that?

Norrenberger has strategically diversified service offerings across various segments of the financial market and will continue to do so. Today, Norrenberger is an integrated financial services group that provides bespoke financial solutions that add value to our clients. With a team of experienced professionals, Norrenberger offers a comprehensive range of services, including asset management, private equity, development finance, investment banking, securities trading, pensions, insurance, fintech and digital banking. We are listening to our clients. What are their aspirations? What are their dreams? What are their needs? We use this to understand the Nigerian psyche when it comes to their financial needs. On the back of this, we then activate our ‘think tank’ to come up with solutions to meet these needs.

Source: Improved forex liquidity will guarantee investments – Yinkere – Daily Trust

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Welcome to 2024!

From a global perspective, while world economic growth is expected to remain fragile (IMF Forecast: 2.9%), we see global inflation cooling off which would lead many central banks to begin easing monetary policy – global interest rates are expected to fall in 2024. Potential risks remain escalation of geopolitical tensions (particularly between Israel and Hamas) which could disrupt energy markets and worsen the inflation picture.

We believe 2024 calls for a Total Portfolio Approach to investing – diversifying across various asset classes and assessing risk-reward to navigate what will sometimes seem a volatile financial market. Click on this link to read the thoughts of Pabina Yinkere – Business Head, Asset Management.

The post Where to Invest – 2024 appeared first on Norrenberger Asset Management Limited.

The Norrenberger Turbo Fund is an open-ended collective investment scheme registered by the Securities and Exchange Commission (SEC). It is targeted toward investors with the capacity to stay invested for a long period, institutional investors including pension fund administrators, insurance companies, corporate entities, public sector agencies, and other asset managers who seek to diversify their portfolio holdings and earn attractive returns. Others who form part of the target list include retail investors with a bias for fixed income investments.

Commenting on the launch, Tony Edeh, Group Managing Director/CEO at Norrenberger, stated, “The Norrenberger Turbo Fund represents a significant milestone in our commitment to helping our clients achieve their financial objectives. Our team has dedicated considerable effort to creating a well-rounded investment solution that combines our extensive expertise with a responsible, forward-looking approach. Consistent with our promise, our goal continues to be the creation of sustainable and inclusive financial solutions for every household by 2025”.

The Norrenberger Turbo Fund is designed to provide a unique and well-balanced investment portfolio that promises growth, stability, and impressive returns. With a deep commitment to responsible investing, the fund is structured to adapt to changing market dynamics and aims to provide a sustainable source of financial prosperity for its investors.

The Fund Manager shall seek to attain this objective within an acceptable level of investment risk. The Fund seeks to provide investors with a low-risk investment and stable and competitive returns by investing in fixed income securities and investment products while achieving income generation.

Some of the key features of the Norrenberger Turbo Fund include: free entry and exit for investors subject to the prevailing bid and offer price, a well-diversified portfolio, accessibility to both institutional and individual investors, thus making it an inclusive investment solution, flexibility of converting the investment in the fund into cash at any time and capital preservation & appreciation as fixed income mutual funds are generally less volatile than equity mutual funds, making them a good option for investors looking to preserve their capital.

Also speaking during an introduction brief, Pabina Yinkere, representing the Business Head, Asset Management stated “the focus of the Norrenberberger Turbo Fund is to further deepen our reach with our customers and ensure that creating alternative and diversified solutions for various demographics remains a focal point of the business’’.

Investors interested in the Norrenberger Turbo Fund can learn more about its features and benefits by visiting the Norrenberger website www.norrenberger.com. The fund is open for subscriptions from November 1^st, 2023, and Norrenberger welcomes inquiries from prospective investors looking to explore this exciting new investment opportunity.

Norrenberger is a financial services group that provides bespoke financial solutions that add value to our individual and institutional clients. With a team of experienced professionals, Norrenberger offers a comprehensive range of services, including asset management, private equity, development finance, investment banking, securities trading, pensions, insurance, fintech and digital banking.

Our component companies are licensed, authorised, and regulated by either the Securities & Exchange Commission (SEC), Central Bank of Nigeria (CBN), Nigerian Exchange Limited (NGX), National Pension Commission (PenCom) or National Insurance Commission (NAICOM).

The post Introducing the Norrenberger Turbo Fund: A New Era of Investment Opportunity appeared first on Norrenberger Asset Management Limited.

Step 1: Start Early and Set Clear Goals 

The journey to a comfortable retirement begins with setting clear financial goals. Determine the lifestyle you envision during your retirement years. Consider factors such as housing, healthcare, travel, and leisure activities. Starting early allows you to take advantage of the power of compound interest, where your money earns interest upon interest, resulting in exponential growth over time. 

Step 2: Embrace Pension Planning 

In Nigeria, the Pension Reform Act of 2004 established a mandatory contributory pension scheme for both public and private sector employees. This scheme ensures that workers set aside a portion of their income towards their pension fund. Employers are also required to contribute to these funds, making it a collaborative effort. As an employee, it’s essential to understand your pension scheme, regularly contribute to it, and keep track of your account statements. 

Step 3: Choose the Right Pension Fund Administrator (PFA) 

Selecting the right Pension Fund Administrator is a critical decision. PFAs manage your pension contributions and invest the funds on your behalf. Research and compare different PFAs to find one with a strong track record of effective fund management, transparency, and customer service. Your choice of PFA can significantly impact the growth of your pension savings over the years.  

Step 4: Diversify Your Investments 

Diversification is key to managing risk and optimizing returns. While your pension fund is invested by your chosen PFA, you can often select different investment options based on your risk tolerance and retirement goals. These options may include equity funds, bond funds, and money market funds. Diversifying your investments helps ensure that your retirement savings are resilient to market fluctuations. 

Step 5: Stay Informed and Adjust Your Strategy 

As you progress in your career and life, your retirement goals and financial situation may evolve. Regularly review your pension contributions and investment strategy. If you experience significant life changes such as marriage, having children, or changing jobs, adjust your pension planning accordingly. 

Retiring comfortably requires intentional planning and disciplined financial management. The saying “time is money” reminds us that the time we invest today shapes our financial future. In Nigeria, the pension system provides a structured and regulated framework to help you build a secure retirement. By starting early, understanding your pension scheme, making informed investment choices, and staying vigilant, you can pave the way for a retirement that offers the comfort, freedom, and peace of mind you deserve. Remember, your financial well-being in retirement is a reflection of the time and effort you invest today. The best time to start saving for retirement was years ago, the second-best time is now. 

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The market is largely information-driven, which suggests that positive or pro-market information will most likely cause a positive reaction by investors and vice versa. However, the current bullish momentum being experienced in the market can be attributed to some pro-market pronouncements that were made by the current President upon assumption of office such as the petrol subsidy removal, floating of the exchange rate, and the decreasing interest rate regime in the money market.

The pronouncement on the unification of the exchange rates resulting from the floating of the Naira is particularly critical to attracting Foreign Portfolio Investors (FPIs) to our market, as they constitute a significant part of liquidity injection to the market, which drives demand and consequently stock prices.

Considering the ongoing economic reforms, how should investors take a position in the market?
Several stocks in different sectors of the market in the last year and in the months leading up to the general elections in February this year had been trading below their fair values. Despite the recent rally in the market, some stocks are still undervalued and potentially have a decent upward potential. Therefore, investors should look to taking a position now on especially fundamentally sound stocks with attractive dividend yields and upward potentials for capital appreciation.

Other factors to consider in position-taking are investing in companies within critical sectors of the economy that would benefit from government policies such as banking, petroleum (especially downstream subsector), agricultural, technological, and construction sectors.

How can investors benefit from investing in the equities market?
Investors coming to the market must be very clear about their investment objectives and goals. They need to form a strategy for attaining these goals and be dynamic when the fundamentals of these strategies change. A very important point to consider is that the stock market is a long-term market. As such, investors should match long-term funds with long-term instruments. Investing short-term funds in the long-term market could lead to undue pressure, which in turn could cause such investors to exit their positions regardless of whether their position is profitable or not.

Investors can benefit from the equities market in different ways such as earning dividends, capital appreciation, bonus issues, and a combination of all of the above. To benefit from the aforementioned, invest in stocks with good financials, history of dividend payment, and timing of investing i.e. buying fundamentally sound stocks when others are staying off it (bucking the trend), setting target prices or benchmark returns, and exiting positions when such targets are met. Finally, avoid greed by all means.

How has the unified exchange rate impacted the equities market so far?
This policy pronouncement has had a positive impact on the equities market as it reassures Foreign Portfolio Investors that should they inflow their funds to Nigeria at a certain rate. They can also repatriate the funds back to their home country at a market-determined rate as against the managed exchange rate of the past. This is a confidence booster for these FPIs who hitherto had stayed off our market but could trickle back in and therefore provide liquidity for our market.

Foreign investors’ appetite is growing, and their confidence is building. How can the government sustain this?
The policy on floating the currency needs to be sustained, better transparency in that sector is also needed. The government also has to boost its foreign reserves with productive ventures as well as blockage of leakages in the oil sector, which accounts for a major part of the country’s foreign exchange earnings. Diversification of the economy to other sectors than petroleum would also help the country earn more foreign exchange and consequently boost our reserves.

Why should potential investors sign up with Norrenberger Securities Limited?
At Norrenberger Securities Limited, we pride ourselves as simplifiers of wealth creation, a philosophy that is shared across the Norrenberger Financial Group. Our human capital is our most priced asset as we are deliberate in attracting the best talents in the market to help build an institution that is poised to add value to our clients and the investing public. We leverage technology and sound research in engaging with our clients.

Trading of stocks eases challenges investors have. How can this be made seamless?
With rising inflation numbers, most investors seek investment classes that could give returns that minimise or eliminate the impact of inflation on their funds. Trading in stocks can help achieve this goal. At Norrenberger Securities Limited, clients can trade in the market directly on their own with the help of our Norren Trade platform. We continually seek innovative ways to ensure that very complex financial products and services are simplified to the level of the not-too-savvy investor.

How would you access the economy today, bearing in mind the unification of exchange rate, fuel subsidy removal, and decreasing interest rate at the money market?
The state of the economy in the past two months has been a mixed bag of pains and gains in different quarters. The markets have seen investors make significant gains as some stocks appreciated for as much as 60% in their share prices. The stock market has seen investors hedge against inflation, as returns on their investments have exceeded the current inflation rate.

However, the flip side to this is the high cost of living that the removal of petrol subsidy has led to. The impact of this on businesses is that to maintain your labour force, a pay raise would be appropriate at this time, which in turn would lead to an increase in overheads. Businesses in turn would pass some of these increased operating costs to the final consumer, thereby reducing their purchasing power and increasing the misery index of the average Nigerian.

Nigerians are groaning under the subsidy removal while businesses are lamenting overheads, among other effects. How do you think government can quickly turn this around?
There is no quick fix to the current economic challenges facing the nation today as there have been a lot of legacy issues that needed to be addressed. The government would have to lead from the front so it makes sense to the citizenry when the government says we should tighten our belts.

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