NSE Trains Market Participants on Exchange Traded Funds (ETFs)
Monday, November 7, ​2016

Consistent with its commitment to broaden and deepen the Nigerian capital market, The Nigerian Stock Exchange (NSE or The Exchange) in partnership with Exchange Traded Funds (ETFs) Issuers, Vetiva Fund Managers Limited, Lotus Capital Limited and Stanbic IBTC Asset Management, organised the 2016 NSE Exchange Traded Funds​ Workshop on Monday, November 7, 2016.
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The workshop which brought together thought leaders, investors, Pension Fund Managers, Insurance Companies, Dealing Members, Fund & Asset Managers and Regulators, is designed to create awareness for Exchange Traded Products, address its challenges and promote its opportunities in Nigeria and Africa.

Delivering his opening remarks, the Chief Executive Officer, NSE, Mr. Oscar N. Onyema, OON, noted that “the existence of ETFs in our market is beneficial to retail and institutional investors, as ETFs offer a direct and inexpensive way to attain diversified exposure to an index, commodity, sector, or region. Asides diversification and tradability, ETFs also offer additional benefits of low expense ratio, increased liquidity and can be used to execute different investment strategies”.

According to Mr. Onyema, ETFs were introduced on the NSE in December 2011 with cross listing of Newgold ETF with Assets Under Management (AUM) of N287.5m to provide investors with new opportunities to diversify their portfolios and access the market. “As at today, we have recorded about 1,900 per cent growth in our ETF market with total AUM of about N4.24bn as at September 2016 on eight ETFs currently listed and traded on the Exchange”.

The eight ETFs currently listed on the NSE are Newgold ETF, Vetiva Griffin 30 ETF, StanbicIBTC ETF 30, Lotus Halal Equity ETF, Vetiva Sector Series ETFs- Banking, Consumer Goods and Industrial, and Vetiva S&P Nigerian Sovereign Bond ETF.
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Participants in the one-day workshop were taken through topics such as Fundamentals of Market Indices, Evolving Trends in Indexing and ETFs, and Dynamics of Exchange Traded Products by Gareth Alison, Executive Director, Morgan Stanley Capital International (MSCI); Charbel Azzi, Head, Middle East, Africa & CIS, S&P Dow Jones Indices; and Nerina Visser, an independent ETF Strategist and Advisor respectively.

The workshop also featured panel discussion on the “Future of ETFs in Nigeria”. Some of the panel discussants include, Hajara Adeola, MD, Lotus Capital Limited; Shuaib Audu, MD, Stanbic IBTC Asset Management; Efiok Efiok, Head, Investment Department, SEC; Oyelade Eigbe, Head, Vetiva Fund Manager Limited and Buki Abu, ETF Product Manager, NSE.​
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