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Collective Schemes Investors Urged to Use SEC-Registered Fund Managers
By Goddy Egene
Collective schemes investors have been advised to always invest their funds through fund managers that are registered by the Securities and Exchange Commission (SEC ).
While investing through collective investment schemes in the nation’s capital market has many advantages, some investors are still discouraged due to their past experiences of losing their funds to fund managers.
But speaking in an interview with THISDAY at the general meeting of the Fund Managers Association of Nigeria (FMAN), Lagos yesterday, President of the association, Dr. Ore Sokefun said the situation has changed significantly given the efforts by SEC and operators to reposition and develop the industry.
According to her, investors should ensure they patronise fund managers that are registered by SEC.
“In recent past we do admit that some fund managers were not abiding by the ethics of the profession. But now FMAN, being a self-regulatory organisation and SEC making sure that everybody is filing their returns and looking at things more correctly, we believe that now you can definitely entrust your money to SEC-registered fund managers. The mistake a lot of investor make is that they do not ensure that who they give their money to is registered by SEC. The list of all registered fund managers is available by looking at SEC website and very soon the list of registered fund managers will also be available on FMAN website, which is www.fman.com.ng,” she said.
Speaking on the volatility in the market, Sokefun said investors should have a long term approach while investing in the stock market.
“As investors we need to think long term. If you are investing today, you do not invest the money that you are going to need in the next one year. Asset prices are very low today and they will surely rebound when the economy rebounds. We need to know that as investors we need to have long term approach and buy with the money you can afford to invest in the two to three or four years,” she said.
Sokefun, who is the managing director of Investment One VenCap Limited, said investing in collective investment schemes using fund managers has many benefits.
“If you want to invest you money and do not have the time to do the research yourself or to stay abreast of the market, it is always better for you to go through a collective investment. You will have a professional, a fund manager who looks at the fund every day and stays abreast of the information that will either move the market either positively or negatively and react to it,” she said.