Established in 1997 to provide portfolio management and investment advisory services to individual and institutional clients globally. FCMB Asset Management commenced operations in 2000 under the name First City Asset Management Limited. The company’s name changed to FCMB Asset Management Limited in October 2019. FCMB Asset Management Limited is a wholly-owned subsidiary of CSL Stockbrokers Limited, a member of FCMB Group Plc.

In this interview granted by its Chief Executive Officer, Mr. James Ilori to the Guardian in recognition of FCMB Asset Management as one of the Most credible Asset Management Firms Promoting Wealth Creation in Nigeria, he speaks on the firm’s value proposition and customer focused services amongst other issues.

Tell us about your various investment offers at FCMB Asset Management Limited, and the value proposition that makes your brand stand out in the industry?

At FCMB Asset Management, we offer a diverse range of investment solutions tailored to meet the investment needs of individual, corporates, and institutional investors. Our products and services include: Money Market instruments, such as Treasury Bills, Commercial Papers, Fixed Income Instruments, such as Federal Government of Nigeria Bonds, Corporate Bonds and Sukuk, Equities, mutual funds, Alternative Assets fixed income products. In addition, we assist investors to achieve currency diversification, as our products and services cover both local currency and foreign currency investments.

We apply our local and international investment expertise in developing products and services that create value for investors. Also, we leverage our membership of our financial services group, FCMB Group Plc, to assist investors efficiently access financial products and services. Our digital platforms also simplify access to our products, enabling easy onboarding and account management

Mutual funds appear to be getting more popular in the country. What do you think is responsible for that, and what can be done to encourage more retail investors to key into this form of investment?

Mutual funds have gained popularity due to increasing financial literacy and the growing need for secure, low-barrier access to investment products and services entry points into the financial markets. As more Nigerians seek to diversify their investment portfolios across asset classes and currencies and hedge to safeguard their wealth against inflation, mutual funds will continue to grow in popularity, it offers a reliable vehicle for long-term growth. To encourage more retail investors, education is key. Simplifying investment terms and increasing awareness about the benefits of mutual funds, such as professional management, diversification, and liquidity, will build trust and attract more participants.

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Additionally, leveraging digital platforms to enable seamless transactions can further demystify investments for everyday Nigerians. FCMB Asset Management Limited manages 4 mutual funds, namely, Legacy Money Market Fund, Legacy Debt Fund, Legacy Equity Fund, and Legacy USD Bond Fund, and we only recently closed Series 1 of Nigeria’s first local currency Private Debt Fund, under Alternative Assets. Alternative Assets products are more complex and are therefore only for sophisticated investors who have a deep understanding of financial markets.

The rapid growth of Money Market Funds highlights the key role such Funds play in promoting financial inclusion and fostering a savings culture in Nigeria. By offering a low-risk investment option with returns that are relatively higher than those on traditional savings accounts, Money Market Funds haves attracted a wide range of investors, from individuals to institutions. This influx has significantly contributed to the liquidity of the financial market in Nigeria while encouraging disciplined savings among Nigerians.

As an expert in the industry, can you explain how FCMB Asset Management’s mutual funds enable investors to diversify their portfolios?

FCMB Asset Management Limited’s mutual funds are designed to cater to a variety of investment. Our Legacy Money Market Fund is ideal for conservative investors seeking Capital Preservation and Income-Generation, the Legacy Equity Fund is suitable for investors seeking interest in Capital appreciation, while the Legacy USD Bond Fund seeks to generate regular income and helps investors achieve currency diversification. By pooling financial resources from multiple investors, even in small amounts, our mutual funds provide an efficient way to gain exposure to a wide range of financial assets that would typically be out of reach for retail investors.

What is your outlook for the Nigerian capital market?

The Nigerian capital market remains resilient, despite challenges posed by macroeconomic factors such as inflation and currency volatility. In the short term, we expect cautious optimism as investors assess policy direction and market reforms.

However, in the medium- to- long term, we foresee significant growth, driven by increased local participation and positive effects of deeper capital market reforms, and the introduction of more innovative financial products and services. The ongoing digital transformation in financial services will also make the market more accessible, particularly to retail investors, thereby fostering sustainable growth and development.