The third edition of the Debt Capital Markets Development Project (“DCMD Project”) Retail Investors Session themed, Investment Options in the Nigerian Debt Markets – Bonds (the “Session”) held on Wednesday, April 26, 2023. The Session was executed as part of the mandate of the DCMD Project Investors, Issuers & Intermediaries Engagement/Education Sub-Committee (the “Sub-Committee”) to create awareness, build capacity in the capital markets’ ecosystem, facilitate investors readiness and champion corporate governance in the Nigerian debt markets.
Just like the previous editions, the Session was focused on creating awareness on the benefits of investing in the Nigerian debt markets for retail investors. However, the objective of the third edition was to demystify the features, benefits, access and investment risks in Bonds, as well as the access to the investment option through Bond Mutual Funds.
The Session which was hosted by FMDQ Securities Exchange Limited featured the delivery of a welcome address by Dr. Ore Sofekun, Managing Director, Foothold Advisors Limited; presentations from members of the Sub-Committee, Mr. Tosin Osunkoya, Co-Managing Partner, Comercio Partners Limited and Mr. Aigbovbioise Aig-Imoukhuede, President, Fund Managers Association of Nigeria (“FMAN”), ably represented by Ms. Ada Ijara, Vice President, FMAN; as well as a Questions & Answers segment, moderated by Ms. Jumoke Olaniyan, Senior Vice President, FMDQ Securities Exchange Limited which afforded participants the opportunity to make enquiries and seek insights from the aforementioned well experienced subject matter experts.
Dr. Sofekun started the Session with a brief address wherein she welcomed all attendees and provided an overview of previous sessions organised by the Sub-Committee whilst highlighting the alignment with the mandate of the DCMD Project. She also reiterated the importance of market education as a driver for market development in ensuring information and knowledge are shared with new, existing and prospective investors in the Nigerian debt markets in a bid to build investors’ confidence.
The first presentation on Investment Options in the Nigerian Debt Markets – Bonds, was facilitated by Mr. Osunkoya. He provided detailed information about the overview of the market, key market statistics, stakeholders, benefits of investing, key factors to look out for when investing in the bonds market, investment risks and mitigants, various investment access and platforms, as well as the types of investors in the Nigerian debt markets. The presentation was extremely details which availed participants the opportunity to understand the products and how it can be accessed in the markets.
Ms. Ijara facilitated the second segment of the Session wherein she made a presentation on Bond Mutual Funds as an Investment Vehicle. She gave a detailed explanation about the overview of Mutual Funds performance, both globally and domestically, available Mutual Funds in Nigeria, investment risks and mitigants in Bond Mutual Funds, investment process (access & platforms), as well as pre-investments considerations in the Bond Mutual Funds market.
Ms. Olaniyan moderated the Questions & Answers segment allowing participants the opportunity to enquire about the key risks in the markets discussed, the required documentations to participate in the markets, tax incentives in the market, pricing methodology and investment limits for retail investors, amongst other thought-provoking and insightful questions.
To end the Session, Ms. Olaniyan gave the closing remark, thanking all participants for attending the Session, and also expressing gratitude to the facilitators, Sub-Committee members and DCMD Project Office for the valuable contributions towards the successful execution of the Session.
The Session was attended by about forty (40) participants.