Business

Collective Investment Schemes Hit $1 Billion

The net asset value  of collective investment schemes(CIS) in the Nigerian stock market has hit $1 billion, the Director General Securities and Exchange Commission (SEC), Ms. Arunma Oteh, has said.
 
Oteh made this disclosure yesterday at the 2013 Capital Market Committee (CMC) retreat in Abuja as market operators have advised investors to  patronise the market through CIS. 
CIS is a mutual  trust scheme that pools the resources of investors together and managed by professional fund managers on behalf of the investors. It is believed to have many advantages over direct investment by investors.
 
Speaking in Abuja, Oteh  said  the CIS industry had continued to grow hitting $1 billion.
According to her,  there had been an increased awareness among Nigerians  of the critical role capital markets could play in  actualising  Nigeria’s economic potential by supplying  the much-needed medium to long-term capital for government infrastructure development and business development.
 
Apart from providing long-term capital, Oteh said capital markets  were enablers of socio-economic stability.
 
“Capital markets also hasten the rate of capital formation,  foster  a meritocracy and promote good corporate governance, innovation, and entrepreneurship. In addition, capital markets broaden access to economic prosperity by enabling the emergence of financially  responsible citizens, accelerating wealth creation and wealth distribution, providing capital for small and medium scale enterprises(SMEs) and catalyzing housing finance,” she said.
 
Oteh noted the capital market community led by SEC continued to value the contributions  of stakeholders to the progress of the market ,noting that the regulator  regularly interacted with stakeholder groups to strengthen   relationships.
In order to reposition the market for better performance and remain competitive, she said   during the third quarter CMC meeting, three important committees  were set up to develop a 10-year master plan that will be monitored at least quarterly by the market-wide CMC.

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