Not too long ago, the Nigeria Sovereign Investment Authority (NSIA), announced its results for the 2018 financial year. According to the financial statement, “the results show strong performance in a year when many international markets under-performed and the global economy experienced a moderate pace of expansion.”
Following the release of NSIA’s financial performance, the mass media went agog with the impressive news. However, there is an aspect of the results that need further scrutiny because it is packed with some teachable elements. That has to do with the fact that NSIA credited the strong performance to its investment strategy. According to a press statement, the investment strategy “proved robust with headline numbers maintaining a favorable trajectory across the three funds – The Stabilization Fund, Future Generations Fund, and Nigeria Infrastructure Fund.”
There is no doubt that 2018 was a challenging year for investment management professionals who had to battle the market volatilities generated by the US Fed’s interest rate tinkering, Donald Trump’s drum beat of trade wars with China and others, the uncertainty of Brexit, among others. It, therefore, would take sound investment strategy to come out on top in such volatile market situations, just like the Nigeria Sovereign Investment Authority did.
What is an investment strategy?
Financial Investment is like a game of chess. It is like going to war; you need a strategy to win the game of the war. Simply put, an investment strategy has to do with the way an active fund manager goes about analyzing what financial assets to buy or sell. It also entails deciding on when to buy or sell the financial assets. This is done by identifying a set of actionable return factors that can be used to generate superior investment performance.
Everyone Needs a Strategy
An investment strategy is a guiding principle that underscores investment decisions. An investment strategy is not only required by fund managers or large corporates like the Nigeria Sovereign Investment Authority; individuals also require to have investment strategies. Investing your money without an investment strategy is like groping in the dark in the world of money management. Having an investment strategy is like having a roadmap that guides you through the investment process. Not only will it guide you through the process, but it will also help you to avoid dangerous detours in the forms of potential investments that may not be right for your investment goals/objectives, as well as investments that are likely to perform poorly in the near future.
Strategy Goes with Objectives
To have or create an investment strategy, you have to have an investment objective. Of what use is a roadmap if you do not know where you want to go or if you do not intend to go anywhere at all? Investment objective tells you where you are going while investment strategy takes you there. So, make your investment objective actionable and quantifiable. A typical example is: I want to make a return of 8% on my stock investments this year. Such a statement is much more quantifiable and actionable than saying, I want to get rich this year. By quantifying your investment objective, it makes it easier to measure your performance towards the objective or lack thereof. Once you have decided on your objective, you can then arm yourself with your roadmap; the investment strategy which will guide you towards where you want to go.
Like the game of chess, like war, and like every journey, many roads can lead you to your destination or planned outcome or objective. The road map may take you along different routes, some of which you may willingly want to avoid because of past experience or perceived danger. In the same way, there are different investment strategies that can lead you to your investment objective but the choice is yours. Here are some of them:
Value Investing Strategy
This strategy entails looking for and finding undervalued stocks that one can buy at cheaper prices. Though finding such stocks involves a lot of painstaking and time-consuming research on company fundamentals, if found, you should be patient enough to wait until the prices revert to profitable levels before selling them. This strategy appeals to buy and hold investors more than it does to daily traders.
Income Investing Strategy
This strategy entails investing in securities with a history of consistent payout of returns like dividends/interests. Fixed income securities like bond investing are the best-known way of engaging in income investing strategy. Dividend stocks also provide exposure to this strategy. This strategy is best for retirees and those with low-risk appetite. It appears to be the strategy used by the Sovereign Wealth Authority.
Growth Investing Strategy
Growth investing strategy entails investing in stocks of companies that have or exhibit growth potentials. It is suitable for those looking for capital appreciation rather than a steady stream of income. Unfortunately, the shares of growth-oriented companies appear to be expensive because of the upward potential and as such their price to earnings ratio or price to book ratios seem to be high. This strategy is more at peace with investors with higher risk appetite and the patience to wait it out.
Socially Responsible Investing Strategy
With many people showing their love for the environment and their dislike for some social vices like smoking, alcoholism or pornography, a new investing strategy has come out to be known as socially responsible investing strategy. This strategy enables those who do not want to invest in certain sectors of an economy to be able to invest without violating their norms or beliefs. Such investors can invest in the likes of sukuk bonds, Halal or Islamic compliant investments or green bonds for those that are disposed to the preservation of the environment and fight against global warming
The Choice is Yours
The above is a list of some investment strategies for your consideration. The investment strategy you decide to choose will depend on your “financial or investment chemistry”. Before you chose though, try as much as possible to ask yourself the following questions:
- What is my risk appetite or tolerance level? In other words, what amount of risk am I willing to accept?
- What is my investment time horizon? This is important because your time horizon will determine your patience and how long you are willing to wait before cashing out on any profits.
- What returns am I wishing to achieve? Again, this is important because the higher the expected return, the riskier the investing strategy you may wish to choose.
- What funds do I wish to put into this investment? If you decide to put your emergency fund into an investment, for example, you will most likely use an income investing strategy as that has the least likelihood that you would lose your capital. It is very much unlike growth investing strategy which seeks capital appreciation and has a higher risk of loss.
COVID-19 Update in Nigeria
On the 12th of August 2020, 453 new confirmed cases and no deaths were recorded in Nigeria.
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increase as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 47,743 confirmed cases.
On the 12th of August 2020, 453 new confirmed cases and no deaths were recorded in Nigeria, having carried out a total daily test of 13,233 samples across the country.
To date, 47,743 cases have been confirmed, 33,943 cases have been discharged and 956 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 338,084 tests have been carried out as of August 12th, 2020 compared to 319,851 tests a day earlier.
COVID-19 Case Updates- 12th August 2020,
- Total Number of Cases – 47,743
- Total Number Discharged – 33,943
- Total Deaths – 956
- Total Tests Carried out – 338,084
According to the NCDC, the 453 new cases were reported from 16 states- Lagos (113), FCT (72), Plateau (59), Enugu (55), Kaduna (38), Ondo (32), Osun (26), Ebonyi (20), Ogun (9), Delta (8), Borno (7), Akwa Ibom (6), Oyo (5), Bauchi (1), Kano (1) and Ekiti (1).
Meanwhile, the latest numbers bring Lagos state total confirmed cases to 16,187, followed by Abuja (4,597), Oyo (2,895), Edo (2,399), Rivers (1,972), Kaduna (1,666), Kano (1,644), Plateau (1,643), Delta (1,621), Ogun (1,506), Ondo (1,326), Enugu (969), Ebonyi (908), Kwara (882), Katsina (746), Borno (697), Osun (678), Abia (663), Gombe (635), and Bauchi (579).
Imo State has recorded 485 cases, Benue (430), Nasarawa (371), Bayelsa (346), Jigawa (322), Akwa Ibom (241), Niger (226), Ekiti (194), Adamawa (185), Anambra (156), Sokoto (154), Kebbi (90), Taraba (78), Zamfara (77), Cross River (73), Yobe (67), while Kogi state has recorded 5 cases only.
Lock Down and Curfew
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.
On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.
On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.
|Date||Confirmed case||New cases||Total deaths||New deaths||Total recovery||Active cases||Critical cases|
|August 12, 2020||47743||453||956||0||33943||12844||7|
|August 11, 2020||47290||423||956||6||33609||12725||7|
|August 10, 2020||46867||290||950||5||33346||12571||7|
|August 9, 2020||46577||437||945||3||33186||12446||7|
|August 8, 2020||46140||453||942||6||33044||12154||7|
|August 7, 2020||45687||443||936||6||32637||12114||7|
|August 6, 2020||45244||354||930||3||32430||11884||7|
|August 5, 2020||44890||457||927||17||32165||11798||7|
|August 4, 2020||44433||304||910||14||31851||11672||7|
|August 3, 2020||44129||288||896||8||20663||22570||7|
|August 2, 2020||43841||304||888||5||20308||22645||7|
|August 1, 2020||43537||386||883||4||20287||22567||7|
|July 31, 2020||43151||462||879||1||19565||22707||7|
|July 30, 2020||42689||481||878||5||19270||22541||7|
|July 29, 2020||42208||404||873||5||19004||22331||7|
|July 28, 2020||41804||624||868||8||18764||22172||7|
|July 27, 2020||41180||648||860||2||18203||22117||7|
|July 26, 2020||40532||555||858||2||17374||22300||7|
|July 25, 2020||39977||438||856||11||16948||22173||7|
|July 24, 2020||39539||591||845||12||16559||22135||7|
|July 23, 2020||38948||604||833||20||16061||22054||7|
|July 22, 2020||38344||543||813||8||15815||21716||7|
|July 21, 2020||37801||576||805||4||15677||21319||7|
|July 20, 2020||37225||562||801||12||15333||21091||7|
|July 19, 2020||36663||556||789||11||15105||20769||7|
|July 18, 2020||36107||653||778||6||14938||20391||7|
|July 17, 2020||35454||600||772||3||14633||20049||7|
|July 16, 2020||34854||595||769||9||14292||19793||7|
|July 15, 2020||34259||643||760||6||13999||19500||7|
|July 14, 2020||33616||463||754||10||13792||19070||7|
|July 13, 2020||33153||595||744||4||13671||18738||7|
|July 12, 2020||32558||571||740||16||13447||18371||7|
|July 11, 2020||31987||664||724||15||13103||18160||7|
|July 10, 2020||31323||575||709||20||12795||17819||7|
|July 9, 2020||30748||499||689||5||12546||17513||7|
|July 8, 2020||30249||460||684||15||12373||17192||7|
|July 7, 2020||29789||503||669||15||12108||17012||7|
|July 6, 2020||29286||575||654||9||11828||16804||7|
|July 5, 2020||28711||544||645||11||11665||16401||7|
|July 4, 2020||28167||603||634||6||11462||16071||7|
|July 3, 2020||27564||454||628||12||11069||15867||7|
|July 2, 2020||27110||626||616||13||10801||15693||7|
|July 1, 2020||26484||790||603||13||10152||15729||7|
|June 30, 2020||25694||561||590||17||9746||15358||7|
|June 29, 2020||25133||566||573||8||9402||15158||7|
|June 28, 2020||24867||490||565||7||9007||14995||7|
|June 27, 2020||24077||779||558||4||8625||14894||7|
|June 26, 2020||23298||684||554||5||8253||14491||7|
|June 25, 2020||22614||594||549||7||7822||14243||7|
|June 24, 2020||22020||649||542||9||7613||13865||7|
|June 23, 2020||21371||452||533||8||7338||13500||7|
|June 22, 2020||20919||675||525||7||7109||13285||7|
|June 21, 2020||20242||436||518||12||6879||12847||7|
|June 20, 2020||19808||661||506||19||6718||12584||7|
|June 19, 2020||19147||667||487||12||6581||12079||7|
|June 18, 2020||18480||745||475||6||6307||11698||7|
|June 17, 2020||17735||587||469||14||5967||11299||7|
|June 16, 2020||17148||490||455||31||5623||11070||7|
|June 15, 2020||16658||573||424||4||5349||10885||7|
|June 14, 2020||16085||403||420||13||5220||10445||7|
|June 13, 2020||15682||501||407||8||5101||10174||7|
|June 12, 2020||15181||627||399||12||4891||9891||7|
|June 11, 2020||14554||681||387||5||4494||9673||7|
|June 10, 2020||13873||409||382||17||4351||9140||7|
|June 9, 2020||13464||663||365||4||4206||8893||7|
|June 8, 2020||12801||315||361||7||4040||8400||7|
|June 7, 2020||12486||260||354||12||3959||8173||7|
|June 6, 2020||12233||389||342||9||3826||8065||7|
|June 5, 2020||11844||328||333||10||3696||7815||7|
|June 4, 2020||11516||350||323||8||3535||7646||7|
|June 3, 2020||11166||348||315||1||3329||7522||7|
|June 2, 2020||10819||241||314||15||3239||7266||7|
|June 1, 2020||10578||416||299||12||3122||7157||9|
|May 31, 2020||10162||307||287||14||3007||6868||7|
|May 30, 2020||9855||553||273||12||2856||6726||7|
|May 29, 2020||9302||387||261||2||2697||6344||7|
|May 28, 2020||8915||182||259||5||2592||6064||7|
|May 27, 2020||8733||389||254||5||2501||5978||7|
|May 26, 2020||8344||276||249||16||2385||5710||7|
|May 25, 2020||8068||229||233||7||2311||5524||7|
|May 24, 2020||7839||313||226||5||2263||5360||7|
|May 23, 2020||7526||265||221||0||2174||5131||7|
|May 22, 2020||7261||245||221||10||2007||5033||7|
|May 21, 2020||7016||339||211||11||1907||4898||7|
|May 20, 2020||6677||284||200||8||1840||4637||7|
|May 19, 2020||6401||226||192||1||1734||4475||7|
|May 18, 2020||6175||216||191||9||1644||4340||7|
|May 17, 2020||5959||388||182||6||1594||4183||7|
|May 16, 2020||5621||176||176||5||1472||3973||7|
|May 15, 2020||5445||288||171||3||1320||3954||4|
|May 14, 2020||5162||193||168||3||1180||3815||4|
|May 13, 2020||4971||184||164||6||1070||3737||4|
|May 12, 2020||4787||146||158||6||959||3670||4|
|May 11, 2020||4641||242||152||10||902||3589||4|
|May 10, 2020||4399||248||142||17||778||3479||4|
|May 9, 2020||4151||239||127||11||745||3278||4|
|May 8, 2020||3912||386||118||10||679||3115||4|
|May 7, 2020||3526||381||108||4||601||2818||4|
|May 6, 2020||3145||195||104||5||534||2507||1|
|May 5, 2020||2950||148||99||5||481||2370||4|
|May 4, 2020||2802||245||94||6||417||2291||2|
|May 3, 2020||2558||170||88||2||400||2070||2|
|May 2, 2020||2388||220||86||17||351||1952||2|
|May 1, 2020||2170||238||69||10||351||1751||2|
|April 30, 2020||1932||204||59||7||317||1556||2|
|April 29, 2020||1728||196||52||7||307||1369||2|
|April 28, 2020||1532||195||45||4||255||1232||2|
|April 27, 2020||1337||64||41||0||255||994||2|
|April 26, 2020||1273||91||41||5||239||994||2|
|April 25, 2020||1182||87||36||3||222||925||2|
|April 24, 2020||1095||114||33||1||208||855||2|
|April 23, 2020||981||108||32||3||197||753||2|
|April 22, 2020||873||91||29||3||197||648||2|
|April 21, 2020||782||117||26||3||197||560||2|
|April 20, 2020||665||38||23||1||188||466||2|
|April 19, 2020||627||86||22||2||170||436||2|
|April 18, 2020||541||48||20||2||166||356||2|
|April 17, 2020||493||51||18||4||159||317||2|
|April 16, 2020||442||35||13||1||152||277||2|
|April 15, 2020||407||34||12||1||128||267||2|
|April 14, 2020||373||30||11||1||99||263||2|
|April 13, 2020||343||20||10||0||91||242||2|
|April 12, 2020||323||5||10||0||85||228||2|
|April 11, 2020||318||13||10||3||70||238||2|
|April 10, 2020||305||17||7||0||58||240||2|
|April 9, 2020||288||14||7||1||51||230||2|
|April 8, 2020||274||22||6||0||44||226||2|
|April 7, 2020||254||16||6||1||44||204||2|
|April 6, 2020||238||6||5||0||35||198||2|
|April 5, 2020||232||18||5||1||33||194||2|
|April 4, 2020||214||5||4||0||25||185||0|
|April 3, 2020||209||25||4||2||25||180||0|
|April 2, 2020||184||10||2||0||20||162||0|
|April 1, 2020||174||35||2||0||9||163||0|
|March 31, 2020||139||8||2||0||9||128||0|
|March 30, 2020||131||20||2||1||8||121||0|
|March 29, 2020||111||22||1||0||3||107||0|
|March 28, 2020||89||19||1||0||3||85||0|
|March 27, 2020||70||5||1||0||3||66||0|
|March 26, 2020||65||14||1||0||2||62||0|
|March 25, 2020||51||7||1||0||2||48||0|
|March 24, 2020||44||4||1||0||2||41||0|
|March 23, 2020||40||10||1||1||2||37||0|
|March 22, 2020||30||8||0||0||2||28||0|
|March 21, 2020||22||10||0||0||1||21||0|
|March 20, 2020||12||4||0||0||1||11||0|
|March 19, 2020||8||0||0||0||1||7||0|
|March 18, 2020||8||5||0||0||1||7||0|
|March 17, 2020||3||1||0||0||0||3||0|
|March 16, 2020||2||0||0||0||0||2||0|
|March 15, 2020||2||0||0||0||0||2||0|
|March 14, 2020||2||0||0||0||0||2||0|
|March 13, 2020||2||0||0||0||0||2||0|
|March 12, 2020||2||0||0||0||0||2||0|
|March 11, 2020||2||0||0||0||0||2||0|
|March 10, 2020||2||0||0||0||0||2||0|
|March 9, 2020||2||1||0||0||0||2||0|
|March 8, 2020||1||0||0||0||0||1||0|
|March 7, 2020||1||0||0||0||0||1||0|
|March 6, 2020||1||0||0||0||0||1||0|
|March 5, 2020||1||0||0||0||0||1||0|
|March 4, 2020||1||0||0||0||0||1||0|
|March 3, 2020||1||0||0||0||0||1||0|
|March 2, 2020||1||0||0||0||0||1||0|
|March 1, 2020||1||0||0||0||0||1||0|
|February 29, 2020||1||0||0||0||0||1||0|
|February 28, 2020||1||1||0||0||0||1||0|
FG approves N8.49billion to procure COVID-19 testing Kits, others
The fund is to procure 12 items in various quantities to strengthen the testing for COVID-19.
The federal government has approved N8.49 billion to procure 12 items in various quantities to strengthen the testing for COVID-19 by Nigeria Centre for Disease Control (NCDC).
The approval was given during the 11th virtual meeting of the Federal Executive Council presided over by President Muhammadu Buhari on Wednesday.
The approval was based on a memorandum presented to the council by the Minister of Health, Osagie Ehanire.
He was joined at the post-FEC press briefing by the Minister of Information and Culture, Lai Mohammed; and the Minister of Environment, Muhammad Mahmood.
He explained that the approval was made to further equip the NCDC to respond appropriately to the community transmission phase of the pandemic.
COVID-19: Russia to start mass inoculation of vaccine this month as it insists on its safety
The vaccine is said to be undergoing Phase 3 trials, which is the final stage.
Russia has announced that it was going to start mass vaccination of the world’s first COVID-19 vaccine this month before the completion of clinical testing. This is just as it waved off concerns by the international community and some scientists about the safety of the vaccine.
These views were made known by the Russian Health Minister, Mikhail Murashko, on Wednesday, August 12, 2020, during a press briefing.
The Health Minister in his statement said, ‘’Western colleagues, who can sense the competitive advantage of the Russian drug, are trying to express some opinions that are completely unjustified in our view. This vaccine is a platform that is already well-known and studied,” he said, adding that other countries have developed antidotes under accelerated testing programs.’’
Murashko also said that the authorities plan to start inoculating medical workers and other risk groups within 2 weeks on a voluntary basis while pointing out that the vaccine will be made available to the general public from October.
Nairametrics had reported yesterday that the Russian President, Vladimir Putin, in a televised meeting, announced that Russia has registered the first COVID-19 vaccine in what they see as a propaganda coup amid the global race for the development of a vaccine against the coronavirus disease.
This announcement has raised a lot of international concerns with the German Health Minister, Jens Spahn, saying on Wednesday, that Russia’s COVID-19 vaccine has not been sufficiently tested, adding that the aim was to have a safe product rather than just being first to start vaccinating people.
He said in a radio chat that it’s not about being first but rather about having an effective, tested and safe vaccine.
Experts have expressed their concerns over Russia’s decision to grant approval before the final trials of the vaccine have been completed.
He said that as much as he will be pleased to have a good vaccine for the virus, he pointed out that the Russians are not disclosing much about this vaccine.
This vaccine which is developed by Gamaleya Institute in collaboration with the Defence Ministry and the Russian Direct Investment Fund (RDIF), is said to be undergoing Phase 3 trials, which is the final stage.
However, a World Health Organization (WHO) database still lists the vaccine as still only in Phase 1 trial, which is the earliest stage.
The RDIF said that it can produce over 500 million doses of the new vaccine in a year in 5 countries, just as it disclosed that a minimum of 20 countries are currently interested in having access to these vaccines.
The WHO had earlier revealed that it is currently discussing with Russia and pointed out that in granting prequalification of the vaccine, a detailed review of data from clinical trials will be required.