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Mutual Funds in Nigeria and how they rank in reporting and transparency

Even the fund manager stands to gain from transparency in reporting mutual fund activities.

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mutual funds

Mutual funds in Nigeria are growing both in number and asset value. Going by the latest NAV Summary Report from the Security and Exchange Commission, (SEC) for the week ending June 19th, 2020, there are 106 mutual funds in Nigeria with a total asset value of N1,337,044,839,679 the equivalent of $3,714,013,444. That is about the most that one can confidently and unequivocally say about Nigerian mutual funds. That underscores the extent of transparency, or lack thereof, in mutual fund reporting in Nigeria. One would expect that an industry that large, one whose net asset value represents 10% of Nigeria’s stock market capitalization, would not be shrouded in any form of opacity.

What is Transparency: The dictionary meaning of transparency is “the state of being easily detected or seen through, easily and readily understood”. When that definition is applied to mutual funds, transparency translates into the ability of the investor to look through his investment portfolio report or fact sheet and be able to see what the investment manager is doing with his money.

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Why Transparency in Reporting Matters to the investor: Though mutual fund investors may largely be retail investors with not so much investment knowledge, they would like to monitor their investment performance, the risks involved as well as what their money is being invested in. In addition, investors would like to know how much they pay by way of fees. Transparency makes that information known. To the investor, more transparency translates to more information upon which investment decisions can be made. It also increases the level of comfort that investors have about the fund manager to whom they have given their money to manage.

READ ALSO: Top 10 high-yield money market funds that beat inflation in Nigeria

Why Transparency Matters to the Fund Manager: Even the fund manager stands to gain from transparency in reporting mutual fund activities.  Fund managers operate in a competitive market environment and transparency gives them a competitive advantage. A fund manager that discloses information readily, timely, and voluntarily stands to attract investment contributions from investors. It helps to make communication with investors clearer and timely.

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Fund Managers Transparency Ranking: Having made known what and why transparency in mutual fund reporting is and should be the norm, I present below a transparency ranking of fund managers based on the availability of requisite information on their website or elsewhere, the frequency and availability of fact sheets as well as the content of such factsheets.


Stanbic IBTC Asset Management Company:

Daily Prices: Stanbic IBTC Asset Management Company has been at the forefront of mutual fund reporting transparency in Nigeria. It has daily fund prices for the 14 funds it manages updated daily on its website and sent to you upon request. Not only are the prices readily available daily, but they are also available on a historical (inception to date) basis.

Factsheets: Prior to 2019, Stanbic IBTC Asset Management Company used to have a monthly fact sheet for each of their funds, but that got changed to a consolidated quarterly report. The quarterly report is released on a timely basis. The beauty of that report is that it tells the investor the risk profile of each fund, the expense ratio, asset allocation by sector, top 3 stock holdings (which is grossly inadequate disclosure) as well as current fund performance juxtaposed with 3- and 5-year performance data. The fact sheet also shows the investor the performance of the benchmark index for each fund.  Other information contained in the fact sheet includes fund size, NAV, initial and subsequent investments as well as fund objectives. The Q1 2020 factsheets are currently on the website.

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Annual Financial Reports: In addition to the rendition of the fact sheets as noted above, Stanbic IBTC Asset Management publishes the audited financial statements of all the funds under its management. Although that of 2019 has not been published, that of 2018 has been published.

READ ALSO: SEC DG, Mary Uduk, addresses impact of CBN’s policy on equities market


Vetiva Asset Management Company:

Daily Prices: Vetiva Asset Management Company is the second most transparent fund manager in Nigeria. The daily fund prices are readily available although some times it looks like only the dates change without the actual prices changing. This may have to do with the valuation frequency of the funds.

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Factsheets: Vetiva Asset Management Company has a monthly factsheet for its funds. The fact sheet contains most of the information that investors require. It beats Stanbic IBTC as it reports the top 10 holdings, which is better than Stanbic’s 3 top holdings. Like Stanbic, Vetiva Asset Management Company reports the risk profile of its funds but not all, and also reports the gross expense ratio. In addition, it lets investors see the funds’ MTD, QTD, YTD, ITD performance in juxtaposition with the relevant benchmarks. The factsheets used to be timely but as at the time of writing, the latest available is for the end of March 2020, it is likely they fund manager may be changing to quarterly reporting like Stanbic IBTC. Other pertinent information on the fact sheet includes dividend history, NAV, Bloomberg identifier, and lots more.

READ ALSO: What You need to know about Stanbic IBTC’s Shari’ah Fixed Income Fund (“SFIF”)


Lotus Capital Asset Management Company:

Daily Prices: Lotus Capital Asset Management comes next in line on transparency in mutual fund reporting. The fund manager publishes daily mutual fund prices but unlike Stanbic and like Vetiva, historical prices are not readily available. In that case, the prices are available on a get it or lose it basis.

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Fact Sheets: Lotus Capital Asset Management publishes its factsheets on a quarterly basis and has published Q1 2020 edition for each of its funds. Though it does not show expense ratio, it shows the management and incentive fee percentages as well as a description of the risk profile of the fund. In terms of returns, the factsheet shows the QTD, YTD and ITD returns. It does show 5 top stock holdings as well as asset allocation by sector.

Annual Financial Reports: In addition to the fact sheets being available quarterly, Lotus Capital Asset Management publishes the audited financial statements of all the funds under its management. And the 2019 audited financial statement has been put on the platform.

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Quantum Zenith Asset Management Company:

Daily Prices: Quantum Zenith Asset management Company has made a lot of changes to its reporting and by so doing has become one of the most transparent in mutual fund reporting. Daily prices are readily available as well as historical prices in downloadable form.

Factsheets: Quantum Zenith Asset management Company has the funds’ factsheets tucked away on the website The fund manager will be better off making it easier for investors to find the factsheets as its presence is not very evident from the home page.  The fact sheet has most of the required information including top 5 holdings. The beauty of the performance presentation is that it shows whether the fund is out or under perfuming the relevant index and by how much. Information on expense ratio is not provided except the management fee rate.


United Capital Asset Management Company:

Daily Prices: United Capital Asset Management Company would probably have ranked the first or second fund manager if not for the lack of daily prices. On its web site, the last daily price is dated June 14th, 2019. However, I have been receiving the weekly prices upon request and investors can too.

Factsheets: United Capital Asset Mgt. Ltd publishes a monthly fact sheet, the latest being for the month of May 2020. The factsheet shows the risk profile of the fund, the total expense ratio, as well as MTD and YTD return numbers put side by side with that of the benchmark in addition to a 5-year performance summary.  Unfortunately, it does not contain information on what the funds are invested in but it shows the allocation by asset type.

READ MORE: Nigeria’s mutual fund asset value hits N1 Trillion


Others

FSDH is another fund manager that practices or is cognizant of the importance of transparency in fund reporting. The fund manager reports daily prices which can also be downloaded on a historical basis. It also publishes fact sheets. Regrettably, FSDH has been slacking on the timeliness of the fact sheets as the last published ones are for Q4 2019 

FCMB Asset Management is yet another reporting transparency conscious fund. The fund manager ensures that the fund prices are on their website daily. They used to let investors have the funds’ fact sheets but that has stopped as the last one posted was for December 2018

Other Fund Managers:  There are other fund managers that are transparent with regard to daily fund prices like ARM Asset Management, Afrinvest, Chapelhill, FBN, FCMB, and Meristem but the lack of factsheets pushed them out of contention.

Conclusion: The fund industry has come a long way in Nigeria and it continues to evolve, as the regulators tie all the loose ends and fund managers begin to leverage off of the advantages from transparency, my hope is that mutual fund reporting will improve and the investors will be the happier for it.

 

 

 

Patricia

Uchenna Ndimele is the President of Quantitative Financial Analytics Ltd. MutualfundsAfrica.com and mutualfundsnigeria.com (both Quantitative Financial Analytics company website) is a leader in supplying mutual fund information, analysis, and commentary on African mutual funds. We provide reliable fund data; and ratings information that will add value to fund managers, the media, individual investors and investment clubs.

2 Comments

2 Comments

  1. Anonymous

    June 30, 2020 at 8:59 pm

    These report is so FLAWED what is the clear basis for this ranking. Kindly explain how a company that updates their report quarterly can be ranked first. Clients have a whole 3 months without understanding what their funds are being used for. Has the writer heard of GIPS compliance? is Stanbic GIPS compliant, do they publish their price on the Nigerian Stock Exchange, do they have appropriate benchmarks for their Funds. Where calls made to the Asset Management business to ask questions? Are the assets in their portfolio marked to market to reflect transparency.

    Obviously the writer works for Stanbic? Shame on Naira metrics for publishing such a report

  2. Anonymous

    June 30, 2020 at 9:00 pm

    These report is so FLAWED what is the clear basis for this ranking. Kindly explain how a company that updates their report quarterly can be ranked first. Clients have a whole 3 months without understanding what their funds are being used for. Has the writer heard of GIPS compliance? is Stanbic GIPS compliant, do they publish their price on the Nigerian Stock Exchange, do they have appropriate benchmarks for their Funds. Where calls made to the Asset Management business to ask questions? are assets in their portfolio marked to market to reflect transparency.

    Obviously the writer works for Stanbic? Shame on Naira metrics for publishing such a report

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Cryptocurrency

How to become a successful Bitcoin trader

Major steps that are needed if you want to become a successful BTC trader.

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BTC Whales, Bitcoin is scarce, entities, individuals hold for long term

A BTC trader is simply an individual who seeks gains from differential changes in the market price of BTCs. The main objective the BTC trader has in mind is buying prices alow and selling when the flagship currency gains higher. BTC trading can thus be very lucrative and has become one of the fastest-growing careers in the financial spectrum. 

Data obtained from a leading BTC analytic firm, Coinmarketcap showed that the market capitalization of BTC currently stands at over $170 billion. This further illustrates that in 2013 BTC moved from $13.30 to its present-day value of over $9000, meaning that early bird BTC traders had gained over 67,600% since it began. 

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Consequently, this article will show major steps that are needed if you want to become a successful BTC trader. 

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Self-Control & Discipline  

Adebayo Juwon, an FTX consultant for Africa, spoke to Nairametrics in an exclusive interview, explaining in detail the need for a BTC trader to be very disciplined and have a security-conscious mindset. He said; 

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“Firstly I must note that trading is not for everyone, to be a successful crypto trader, self-discipline is a prerequisite to achieving one’s goal. The crypto market is very much volatile than what the traditional traders are used to, hence more risk and reward. 

“A crypto trader must be security conscious; you’re responsible for your account security in the crypto ecosystem, as hackers are preying on whose account is less secured.” 

READ ALSO: CBN provides guidelines to address credit, liquidity risks, others  

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Risk Management 

A successful BTC trader must be able to understand the relationship between reward and risk management. This entails high understanding levels about the degree of randomness in BTC market and the risk involved in taking such risk. As a successful BTC trader, you are required to understand when its best to trade BTC as market conditions change from time to time. 

Adebayo Juwon, FTX consultant for Africa also added vital points on why a BTC trader should never ignore risk management. He said; 

“Also, to be a successful crypto trader, one must have good risk management in place, in a highly volatile market your profits can be zapped away in minutes. Risk comes in different ways in the crypto market, there are lots of scam projects with the good marketing team, they tend to attract investors also, it’s very important to do your own research in the crypto space, and rely less on market sentiment.” 

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READ MORE: Tether mints 80,000,000 USDT to unknown wallets within 24 hours

Timing 

Recall that some days ago Nairametrics, revealed the best time many BTC traders prefer to take their trading positions in the BTC market, thus preferring to trade around the American trading session because of the high price swings that occur at the start of New York stock market trading time -about 2.30 pm GMT. This means there were higher chances of making more money at the start of  American trading sessions than other trading sessions (London and Asian trading session).  

 

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Basic fundamental and Technical analysis skills 

Every successful BTC trader must keep track of macro fundamentals going around the BTC community because such information more often determines the market price of Bitcoin.  Either rumours or news have exponential effects on the BTC market and often create lucrative trading opportunities. 

Chris Ani, a professional BTC trader in a phone chat interview explained to Nairametrics in detail, the major attribute every successful BTC trader must possess, including the need to have basic trading skills. He said; 

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 “To prevent yourself from becoming a slave to the market, you must be trading small enough size on your trades that you are not emotionally attached to them. Trading opportunities wait for no one. 

“You have no idea when and where they will appear. Whenever they appear, you have to be ready with your trading plan.  You must also master technical and fundamental analysis and most importantly the one that works for me, understand the seasons and market structure so as to know when to trade, allow big wins run, or rather exit the market in order not to lose your money.” 

Finally, it’s very important to understand that no matter how good you get at BTC trading, you will often make mistakes and lose money. Always remember, trades that go bad are part of what will make you successful in the long term. Success in BTC trading simply means you are winning more relatively than losing. 

 

Patricia
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Coronavirus

COVID-19 Update in Nigeria

On the 11th of July 2020, 664 new confirmed cases and 15 deaths were recorded in Nigeria.

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The spread of novel Corona Virus Disease (COVID-19) in Nigeria continue to record significant increase as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 31,987 confirmed cases.

On the 11th of July 2020, 664 new confirmed cases and 15 deaths were recorded in Nigeria, having carried out a total daily test of 2,609 samples across the country.

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To date, 31987 cases have been confirmed, 13,103 cases have been discharged and 724 deaths have been recorded in 36, states and the Federal Capital Territory. A total of 178,265 tests have been carried out as of July 11th, 2020 compared to 175,656 tests a day earlier.

COVID-19 Case Updates- 11th July 2020,

  • Total Number of Cases – 31,987
  • Total Number Discharged – 13,103
  • Total Deaths – 724
  • Total Tests Carried out – 178,265

According to the NCDC, the 664 new cases are reported from 18 states- Lagos (224), FCT (105), Edo (85), Ondo (64), Kaduna (32), Imo (27), Osun (19), Plateau (17), Oyo (17), Ogun (17), Rivers (14), Delta (11), Adamawa (10), Enugu (7), Nassarawa (6), Gombe (3), Abia (3), Ekiti (3).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 12,275, followed by Abuja (2,538), Oyo (1,706), Edo (1,678), Delta (1,359), Rivers (1,357), Kano (1,303), Ogun (1,080),  Kaduna (978), Ondo (670), Katsina (655), Borno (586), Gombe (530), Bauchi (519), Plateau (516), Ebonyi (508), Enugu (476), Abia (405),  Imo (386), Jigawa (321).

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Kwara state has recorded 311 cases, Bayelsa (299), Nasarawa (244), Osun (231), Sokoto (153), Niger (135), Akwa Ibom (134), Benue (121), Adamawa (110), Anambra (93), Kebbi (86), Zamfara (76), Yobe (62), Ekiti (49), Taraba (27), while Kogi and Cross River state have recorded 5 cases each.

 

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

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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.

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READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

DateConfirmed caseNew casesTotal deathsNew deathsTotal recoveryActive casesCritical cases
July 11, 2020319876647241513103181607
July 10, 2020313235757092012795178197
July 9, 202030748499689512546175137
July 8, 2020302494606841512373171927
July 7, 2020297895036691512108170127
July 6, 202029286575654911828168047
July 5, 2020287115446451111665164017
July 4, 202028167603634611462160717
July 3, 2020275644546281211069158677
July 2, 2020271106266161310801156937
July 1, 2020264847906031310152157297
June 30, 202025694561590179746153587
June 29, 20202513356657389402151587
June 28, 20202486749056579007149957
June 27, 20202407777955848625148947
June 26, 20202329868455458253144917
June 25, 20202261459454977822142437
June 24, 20202202064954297613138657
June 23, 20202137145253387338135007
June 22, 20202091967552577109132857
June 21, 202020242436518126879128477
June 20, 202019808661506196718125847
June 19, 202019147667487126581120797
June 18, 20201848074547566307116987
June 17, 202017735587469145967112997
June 16, 202017148490455315623110707
June 15, 20201665857342445349108857
June 14, 202016085403420135220104457
June 13, 20201568250140785101101747
June 12, 20201518162739912489198917
June 11, 2020145546813875449496737
June 10, 20201387340938217435191407
June 9, 2020134646633654420688937
June 8, 2020128013153617404084007
June 7, 20201248626035412395981737
June 6, 2020122333893429382680657
June 5, 20201184432833310369678157
June 4, 2020115163503238353576467
June 3, 2020111663483151332975227
June 2, 20201081924131415323972667
June 1, 20201057841629912312271579
May 31, 20201016230728714300768687
May 30, 2020985555327312285667267
May 29, 202093023872612269763447
May 28, 202089151822595259260647
May 27, 202087333892545250159787
May 26, 2020834427624916238557107
May 25, 202080682292337231155247
May 24, 202078393132265226353607
May 23, 202075262652210217451317
May 22, 2020726124522110200750337
May 21, 2020701633921111190748987
May 20, 202066772842008184046377
May 19, 202064012261921173444757
May 18, 202061752161919164443407
May 17, 202059593881826159441837
May 16, 202056211761765147239737
May 15, 202054452881713132039544
May 14, 202051621931683118038154
May 13, 202049711841646107037374
May 12, 20204787146158695936704
May 11, 202046412421521090235894
May 10, 202043992481421777834794
May 9, 202041512391271174532784
May 8, 202039123861181067931154
May 7, 20203526381108460128184
May 6, 20203145195104553425071
May 5, 2020295014899548123704
May 4, 2020280224594641722912
May 3, 2020255817088240020702
May 2, 20202388220861735119522
May 1, 20202170238691035117512
April 30, 2020193220459731715562
April 29, 2020172819652730713692
April 28, 2020153219545425512322
April 27, 20201337644102559942
April 26, 20201273914152399942
April 25, 20201182873632229252
April 24, 202010951143312088552
April 23, 20209811083231977532
April 22, 2020873912931976482
April 21, 20207821172631975602
April 20, 2020665382311884662
April 19, 2020627862221704362
April 18, 2020541482021663562
April 17, 2020493511841593172
April 16, 2020442351311522772
April 15, 2020407341211282672
April 14, 202037330111992632
April 13, 202034320100912422
April 12, 20203235100852282
April 11, 202031813103702382
April 10, 20203051770582402
April 9, 20202881471512302
April 8, 20202742260442262
April 7, 20202541661442042
April 6, 2020238650351982
April 5, 20202321851331942
April 4, 2020214540251850
April 3, 20202092542251800
April 2, 20201841020201620
April 1, 2020174352091630
March 31, 202013982091280
March 30, 2020131202181210
March 29, 2020111221031070
March 28, 20208919103850
March 27, 2020705103660
March 26, 20206514102620
March 25, 2020517102480
March 24, 2020444102410
March 23, 20204010112370
March 22, 2020308002280
March 21, 20202210001210
March 20, 2020124001110
March 19, 20208000170
March 18, 20208500170
March 17, 20203100030
March 16, 20202000020
March 15, 20202000020
March 14, 20202000020
March 13, 20202000020
March 12, 20202000020
March 11, 20202000020
March 10, 20202000020
March 9, 20202100020
March 8, 20201000010
March 7, 20201000010
March 6, 20201000010
March 5, 20201000010
March 4, 20201000010
March 3, 20201000010
March 2, 20201000010
March 1, 20201000010
February 29, 20201000010
February 28, 20201100010

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Patricia
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FEATURED

Meet Atedo Peterside, the man who refuses to go with the crowd  

Atedo Peterside, the man who runs in when everyone is running out.   

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Atedo Peterside

At the height of the COVID-19 pandemic, when most people were seeking ways to hold on to their jobs and prepare for the economic hardship that was bound to ensue, one man was busy resigning from his positions on the boards of several listed companies.   

What were his reasons? Well, he wanted to focus on other interests, precisely on the ANAP Foundation COVID-19 Think Tank which he had just founded at the time. The non-governmental organisation was established with the aim of helping combat the pandemic.   

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That man is Atedo Nari Atowari Petersidewho also goes by the acronym, ANAP. Besides founding IBTC which is currently a part of Stanbic IBTC Holdings Plc, Peterside also founded ANAP Jets. He has been instrumental to the growth of several companies in the private sector and is a key player in influencing public policy in the countryPeterside has also been appointed by successive governments to serve on different important committees.   

This week on our founder’s profile, we bring you Atedo Peterside, the man who runs in when everyone is running out.   

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Let’s talk about his early years  

Mr Peterside was born to the family of Chief Michael Clement Atowari Peterside and Patricia Awune Gboloba Bob-Manuel in 1955. As the only boy in a family of three children, he grew up under a strong parental influence. His father was an Ophthalmologist, and whenever his job allowed him to be at home, he devoted the time to raising his kids with stern lectures as well as he did with lighthearted jokes.   

In 1965, ten-year-old Atedo finished his primary education and proceeded to boarding school at Kings College Lagos. However, the onset of the Nigerian Civil War suspended his education until 1970 when the war ended.   

Despite losing all his savings in the war, Chief Peterside worked and saved enough to send his son to the City University, London in 1973. It was there that he obtained his first degree in Economics. He later obtained his Master’s degree in 1977, also in Economics from the London School of Economics and Political Science.   

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READ ALSO: Atedo Peterside shares throwback picture of pioneer Stanbic IBTC staff members

Why he chose his career path  

In a tribute to his father in 2016, Atedo recalled that his father’s profession as a medical doctor meant that he was always on call and hardly at home with the family. Much as he wanted to follow his father’s footsteps and be a “force for good,” Atedo knew even then that there had to be another way to make positive impacts in the world without being a medical doctor.   

“Because you were permanently ‘on call’, I decided from a very early age that there must be alternative paths to earning a decent living outside of medicine, which looked like a thankless job to me,” he wrote in the tribute.  

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Even though that was the time when it was more fashionable to take a career as a medical doctor or a lawyer, Atedo would not go with the flow.   

The consciousness that some ‘good soldiers’ had been killed in the coups, political crisis and civil war in the 1960s also discouraged him from toeing that line. The stories of the war, as he later noted, was his first painful encounter with the concept of “collateral damage,” and it seemed so unfair that people should have to suffer such consequences trying to put things right in their fatherland.   

It was then that he decided he was going to be an entrepreneur and settled for studying Economics when he went to the United Kingdom for his first degree.   

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After schooling, Atedo started his banking career with full consciousness of his main objective – becoming an entrepreneur. He took up a job with the NAL Merchant Bank (now known as Sterling Bank Plc), which was considered one of the foremost merchant banks at the time. He already knew for a fact at this time that he wanted to go into Investment banking. And he wanted to own one of such banks. 

READ ALSO: Royal Rumble at first trading week of Q3 2020, ASI down 1.99% WoW

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While talking about this years later, Atedo said “I was more of an entrepreneur who just happened to be in banking. I took to banking as a career with the clear intention of becoming a bank entrepreneur.”  

With these dreams in mind, he attended the Owner/President Management Programme at the Harvard Business School from 1991–1993.  

 

Atedo Peterside shares throwback picture of pioneer Stanbic IBTC staff members

IBTC Management in the early 1990s. Sitting from L to R: Atedo Peterside, Angela Omo-Dare, Wale Edun & Oluwande Muoyo. Standing from L to R: Sola David-Borha & Late Toyin Daniju

Founding IBTC  

Despite knowing that he wanted to start a bank, Atedo had to stay on for 10 years at NAL Merchant Bank. The Central Bank of Nigeria’s regulations at the time stipulated that one needed at least 10 years of banking experience to qualify as the Chief Executive Officer of a bank.  

“I stayed for 10 years, not because I couldn’t have started it earlier, but because I needed to have the required 10 years’ experience. And as soon as I did, I went ahead to start the bank,” he said.   

To get a bank started around the time Peterside founded Stanbic IBTC, one had to apply for a banking license and also get investors, which at the time was not so easy. So Chief Peterside started off the process by investing in the bank. Atedo had insisted that it would be inappropriate to seek outside investors for a venture which his own father was afraid of.   

READ MORE: Atedo Peterside says Nigerian Youths can’t start a bank at 33

Atedo recalled that this act of belief reinforced his desire to preserve the bank’s capital at all cost, knowing that he did not only have his money at stake, but that of his father and other shareholders. He stayed as CEO for 18 straight years after incorporation, taking the bank through the early tough years. Under his watch, the bank continued to grow steadily, showing good figures year after year.   

“I don’t think being a CEO at age 33 was such a big issue” he later remarked. “It was being a founder, largest shareholder and entrepreneur, and being the pillar carrying the bank, that was where the pressure really came from. It was a case of being at the forefront taking decisions and bearing the consequences.”  

Values he had gotten from his father came in handy at this time. “My father trained me to disbelieve first and question the message anyone was giving me and only proceed if the proposal makes sense to me,” he recalled.  

It was courtesy of this trait that he never fell prey to fraudsters in his business. Fraudulent schemes were popular at the time, with some of them pitching fake businesses to investors and banks. Unfortunately for them, they soon understood that it was a waste of time trying to get IBTC.    

The experience of working under (now late) Chief Wole Adeosun, his Managing Director and former boss at NAL Merchant Bank, had also given him sufficient exposure. He admitted that the responsibilities which he had to handle so early in his career helped build his confidence, reassuring him that he could run a bank.   

Acquisitions and mergers  

When CBN raised the minimum capital base for banks to N25 billion in 2005, IBTC acquired two commercial banks – Chartered Bank Plc and Regent Bank Plc. Consequently, IBTC became a universal bank on 19 December 2005with a new name – IBTC Chartered Bank Plc.  

In 2007, the bank again merged with Standard Chartered Bank to form the Stanbic IBTC Bank Plc, and Atedo was elected Chairman in October 2007.   

About the merger, he remarked that it was a deliberate decision not influenced by any financial or technical problems in the bank.   

“We could have gone on without the merger and still not had any problems. It was a decision we made after 18 years and we took it because we thought we had seen the right banking partners that will take the bank to the next level.  

“Also as a founder, I was concerned about the careers of those who had given their lives and careers to grow IBTC, and my priority was getting them into an arrangement and institution that could go on forever so that they could have safe and secure jobs and careers, he later said.  

The wisdom in his decision can be seen in the fact that lots of the staff who had worked with him in IBTC went on to have fulfilling careers in the new entity even long after he left.   

For instance, Sola David-Borha, who was his deputy from IBTC and later at Stanbic IBTC, succeeded him as MD and went on to become head of Africa region for the parent bank.   

Another principle which Atedo enforced as MD was using merit as a first criterion in all recruitments and appointments. Not even gender or ethnicity could get anyone an appointment unless he was first qualified, and Atedo insisted that he did not mind having all males or all females if those were the most qualified persons.   

The implication of this practice was that the bank often had more female representation in its management than other banks, and sometime in 2004, it was the only bank that had more females on its management team than males.   

The bank also had a lot of qualified bankers coming in, because they knew that it was an environment where they would be allowed to thrive irrespective of gender, ethnicity or other factors.   

Handling Challenges  

As CEO and later Chairman of a big bank, Atedo had to deal with many challenges. But he would later recall that the most significant challenge came in October 2015 when the Financial Reporting Council of Nigeria accused the bank of falsifying its 2013 and 2014 accounts by including sums which had not been disbursed as part of its operations costs.   

It was a bad day for the bank, especially since the regulatory agency had taken its accusations public whilst asking the bank to withdraw and rectify the statements. The bank’s management also went public with its explanation. Even though the funds had not been disbursed at the time the financial reports were sent in, they had to be included in order to make provisions for disbursement later.   

The explanation should have helped set issues straight but this was not to be. As a matter of fact, the issue dragged on for over a year until the Federal Government appointed CBN to conduct an investigation into it. Eventually, CBN cleared the air and upheld the bank’s practice as the standard – making provisions for the expenses which formed part of its operations costs.  

“I was conversant with all of the accounts and I knew we had done nothing wrong. The only issue was getting everyone to see it. I was also very confident in the team that I had built,” he said in an interview later.   

In his resignation notice later on, Atedo stated that he planned to leave the company in 2015, but the protracted dispute with the Financial Reporting Council forced him to delay his plans.  

Pursuing other interests  

After seeing to the end of the issues with regulatory agencies, Atedo Peterside retired as Chairman in March 2017. Although he still had interests in the bank, he wanted to give more time to other interests. However, he remained on the boards of both The Standard Bank of South Africa Limited and Standard Bank Group Limited.  

His focus after this time was the ANAP Jets Limited which he had started while still heading the board in 2015.  He is the  Chairman of ANAP Jets Limited, as well as a major shareholder. ANAP Jets provides fractional ownership platform, charter and aircraft management services, to serve the business sector, taking care of every detail in operating, maintaining, crewing, catering, and fueling the jet.  

The company has a technical partnership, which brings in Aliserio S.r.l. (formerly Eurofly Service S.p.A.) chaired by Mr Rodolfo BavieraAliserio S.r.l., of Italy as a technical partner.  Not only is the company over 40 years old, Mr. Rodolfo Baviera has also been the Chairman of The European Business Aviation Association between 2000 and 2016, giving him the expertise and network needed to make a valuable technical partnership.  

Atedo also served as board Chairman at Cadbury, and board member of Nigerian Breweries (Heineken subsidiary), Unilever and a Non-Executive Director of Flour Mills Nigeria Plc, until the onset of the pandemic when he resigned to devote more time to combatting the pandemic under the auspices of the ANAP foundation COVID-19 think tank.   

He is the Chairman of ART X Collective Limited and Endeavour High Impact Entrepreneurship Ltd/Gte, a non-profit organization that provides mentorship and support to scale-up companies. Mr Peterside also serves on the African Advisory Board of the Prince’s Trust International.  

Obviously, his hobbies of boating, polo, reading and traveling are not enough to occupy the 65-year old as he continues to pick up new pursuits. Now, he concerns himself with influencing public policy for a better society and has served on several committees at the instance of the government.   

READ ALSO: CBN imposes fresh CRR debits on banks to the tune of N118 billion

“I am sad that today, no young Nigerian at age 33 can start a bank the same way I did because the rules will not even permit him. I feel like the rules have been rigged against the younger generation and that is why you see most of them going into the creative arts like singing, dancing and acting because that is where they feel they have an advantage over the older generation. We need to look at influencing public policy to give them competitive advantage in every sector including public offices,” he said.   

Without entering the theatre like his father, Atedo has made his mark in his chosen path. However, what will speak most for the tireless entrepreneur are the professionals whom he has mentored in the banking industry.   

He was conferred with an honorary Doctor of Science Degree by the University of Port Harcourt, Nigeria, and also elected an Honorary Fellow of the Chartered Institute of Stockbrokers on 1 April 2019.  

Patricia
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