Afrinvest Mutual Fund

[threecrown]

Afrinvest (West Africa) Limited, a firm of fund managers, has concluded arrangements to launch an Initial Public Offering (IPO) of its mutual fund to raise N5 billion. The initial public offering is expected to start next Monday.
A statement made available to THISDAY yesterday said the company will be offering 50 million units of the Fund at N100 each at par to the general public from August 4 to September 10, 2008, the period of the offer period.
The statement said the Fund aims to achieve long-term capital appreciation of its assets by investing in high quality equity securities quoted on The Nigerian Stock Exchange as well as other securities approved by the Securities & Exchange Commission and the Trustees. The Fund is constituted under a trust deed with UBA Trustees Limited as the Trustee to the Fund.
The statement said directors of Afrinvest who met yesterday at the Completion Board Meeting, finalised arrangements for the initial public offering of its debut mutual fund.
Chairman of the company, Apostle Hayford Alile, was quoted as saying: “We are quite excited about the prospects of the Afrinvest Equity Fund. It is the first time that we are inviting the general public to participate in a mutual fund. Our Company possesses considerable portfolio management capabilities. As you may be aware, Afrinvest is the only asset manager in Nigeria to be rated A+ by Global Credit Rating, an international rating agency.”
Managing Director/Chief Executive Officer of the company, Mr. Godwin Obaseki, said: “Afrinvest possesses the necessary asset/portfolio management expertise required to achieve the Fund’s forecast return on investment of 16.42 per cent, 29.86 per cent and 26.68 per cent over the next three years”.
Afrinvest, formerly known as Securities & Trust Transactions Company Limited (SecTrust), is a pioneering firm in the Nigerian asset management field. It launched and managed the first Dollar denominated fixed income fund, the “Nigerian International Debt Fund” in 1997.
Deputy Managing Director of Afrinvest, Mr. Ike Chioke, noted that “current market conditions presents a buying opportunity for the discerning investor and the Fund, with the minimum subscription of N50000, is an attractive investment vehicle for a wide pool of investors who may otherwise not have substantial resources needed to buy their preferred stocks or who are unable to have direct access to the Nigerian capital market.” He also noted that the Fund is open to investment from foreign investors and non-resident Nigerians.
Managing Director of Guaranty Trust Bank Plc, (the Issuing House to the IPO),
Mr. Tayo Aderinokun, said stated that “GTBank is confident that subscribers will benefit immensely from investing in the Fund.”
The occasion also had the representatives of the Securities & Exchange Commission and The Nigerian Stock Exchange in attendance
Afrinvest has grown to become one of the leading corporate finance and advisory companies in Nigeria. The firm, which employs international best practice in all areas of its business, is engaged in investment banking, investment research, securities trading and fund/portfolio management. The firm has also participated in most of the recent landmark corporate finance transactions in Nigeria to date.

[waaan5]

Originally Posted by threecrown

Afrinvest (West Africa) Limited, a firm of fund managers, has concluded arrangements to launch an Initial Public Offering (IPO) of its mutual fund to raise N5 billion. The initial public offering is expected to start next Monday.
A statement made available to THISDAY yesterday said the company will be offering 50 million units of the Fund at N100 each at par to the general public from August 4 to September 10, 2008, the period of the offer period.
The statement said the Fund aims to achieve long-term capital appreciation of its assets by investing in high quality equity securities quoted on The Nigerian Stock Exchange as well as other securities approved by the Securities & Exchange Commission and the Trustees. The Fund is constituted under a trust deed with UBA Trustees Limited as the Trustee to the Fund.
The statement said directors of Afrinvest who met yesterday at the Completion Board Meeting, finalised arrangements for the initial public offering of its debut mutual fund.
Chairman of the company, Apostle Hayford Alile, was quoted as saying: “We are quite excited about the prospects of the Afrinvest Equity Fund. It is the first time that we are inviting the general public to participate in a mutual fund. Our Company possesses considerable portfolio management capabilities. As you may be aware, Afrinvest is the only asset manager in Nigeria to be rated A+ by Global Credit Rating, an international rating agency.”
Managing Director/Chief Executive Officer of the company, Mr. Godwin Obaseki, said: “Afrinvest possesses the necessary asset/portfolio management expertise required to achieve the Fund’s forecast return on investment of 16.42 per cent, 29.86 per cent and 26.68 per cent over the next three years”.
Afrinvest, formerly known as Securities & Trust Transactions Company Limited (SecTrust), is a pioneering firm in the Nigerian asset management field. It launched and managed the first Dollar denominated fixed income fund, the “Nigerian International Debt Fund” in 1997.
Deputy Managing Director of Afrinvest, Mr. Ike Chioke, noted that “current market conditions presents a buying opportunity for the discerning investor and the Fund, with the minimum subscription of N50000, is an attractive investment vehicle for a wide pool of investors who may otherwise not have substantial resources needed to buy their preferred stocks or who are unable to have direct access to the Nigerian capital market.” He also noted that the Fund is open to investment from foreign investors and non-resident Nigerians.
Managing Director of Guaranty Trust Bank Plc, (the Issuing House to the IPO),
Mr. Tayo Aderinokun, said stated that “GTBank is confident that subscribers will benefit immensely from investing in the Fund.”
The occasion also had the representatives of the Securities & Exchange Commission and The Nigerian Stock Exchange in attendance
Afrinvest has grown to become one of the leading corporate finance and advisory companies in Nigeria. The firm, which employs international best practice in all areas of its business, is engaged in investment banking, investment research, securities trading and fund/portfolio management. The firm has also participated in most of the recent landmark corporate finance transactions in Nigeria to date.

These guys should conclude their PP first and stop playing on people's intelligence.

[threecrown]

Originally Posted by waaan5

These guys should conclude their PP first and stop playing on people's intelligence.

As the adage says " all roads lead to the market place"

[aogundele]

Hi All,

Attached is the prospectus for Afrinvest Equity Fund. As one of the best Stockbroking/ fund management firms (from experience), i think this may be worth taking a plunge at a price much lower that the IBTC Equity & the Frontier fund

[Avocado]

aogundele: thank you for uploading this document.
The launch is on as of right now.

And, I'll agree with the opinion of Afrinvest as "one of the best Stockbroking/ fund management firms"; their excellent service (and all the extras) speaks well for them, as does the performance of their Balanced and Ethical Growth Funds. Of course, they must be teased for their "amazing" online presence.

50 pages, this document. Happy reading.

.

[waaan5]

Originally Posted by Avocado

aogundele: thank you for uploading this document.
The launch is on as of right now.

And, I'll agree with the opinion of Afrinvest as "one of the best Stockbroking/ fund management firms"; their excellent service (and all the extras) speaks well for them, as does the performance of their Balanced and Ethical Growth Funds. Of course, they must be teased for their "amazing" online presence.

50 pages, this document. Happy reading.

.

I agree that Afrinvest is one of the best in fund mgt, but they have to watch it. I think complacency might be setting in. Imagine my invitation to the Fund launching was hand delivered just 3 hours before the event, and many such other lapses.

[londoncool]

I wonder how a Stock Broking firm without any Online interactive service could be considered one of the best Stock firms around? If they can not deliver to provide a state-of the art IT platform for their clients internationally what kind of service are they providing .At least when they were formerly SECTRUST we had acces to our accounts online.

Complacency is a slow killer. I would have loved to see the list of companies where the Fund Managers would be investing the Equity Fund in.

[londoncool]

I thought that the PP had been concluded already ??

[Avocado]

Originally Posted by londoncool

I wonder how a Stock Broking firm without any Online interactive service could be considered one of the best Stock firms around? If they can not deliver to provide a state-of the art IT platform for their clients internationally what kind of service are they providing .At least when they were formerly SECTRUST we had acces to our accounts online. .

Even the Sectrust platform was limited. But as to the "how" of your post, here: an online interactive service would be good, but consider these:

1) you could send in a "buy"/"sell" by email up to about 8:30am (or up to 8:45am; there's been some exceptions to these, but generally, one tries to make their work easier by getting things done on time) on a trading day; your mail will be acknowledged and your mandate jobbed
2) you receive an email confirming an executed order
3) you receive your account statement anytime you request for it
4) your relationship offer is sharp, up to date, focused on the ball, and responsive
5) you get certificates promptly verified; of course, without charge
6) you get other matters settled: regularisations with CSCS online registrations, letters for change of active address, execution of mandates for auto/manual crediting with dividends, etc etc; and at absolutely no charge
7) Add this: the trader makes smart decisions, and you get informed; I could recall some superb on-your-feet decisions based on perceptions of market movements. Afrinvest, Super and Delightful

I'm writing from my experience of years of dealing with about more than six different relationship officers, of course, over more than a few years. I've been to their office may be twice: first at the start of the business relationship, and later when I got curious to see an officer who'd bent over backwards (figuratively only, eh) to get stuff done. Better than good, these professionals. We like interactive stuff, eh, but this system works; they'll improve it.

They have a few negatives: their published research holds too much back (they've not explicitly denied this), and of course, the online thing. (They appear to have done an upgrade: see Welcome to Afrinvest (West Africa) Limited)

Originally Posted by londoncool

I would have loved to see the list of companies where the Fund Managers would be investing the Equity Fund in.

They have a few scanty details (%s only) in the prospectus, but in keeping with tradition, one could guess no clear list will be coming out soon. But a hint could be their "Afrinvest 50".
.

[expertwitness]

Londoncool, I would have agreed with you, save for my own experience with them. I've been with Afrinvest since 2003/4 (when it was still Sectrust). They were very up and doing.....however complacency has set it. I gave them share certficates to verify since 2004........till date they've still not done it. Its one thing or the other.......I'm quite disappointed with them.

[expertwitness]

Sorry, that was a response to Avocado.

[hispy99]

Originally Posted by Avocado

Even the Sectrust platform was limited. But as to the "how" of your post, here: an online interactive service would be good, but consider these:

1) you could send in a "buy"/"sell" by email up to about 8:30am (or up to 8:45am; there's been some exceptions to these, but generally, one tries to make their work easier by getting things done on time) on a trading day; your mail will be acknowledged and your mandate jobbed
2) you receive an email confirming an executed order
3) you receive your account statement anytime you request for it
4) your relationship offer is sharp, up to date, focused on the ball, and responsive
5) you get certificates promptly verified; of course, without charge
6) you get other matters settled: regularisations with CSCS online registrations, letters for change of active address, execution of mandates for auto/manual crediting with dividends, etc etc; and at absolutely no charge
7) Add this: the trader makes smart decisions, and you get informed; I could recall some superb on-your-feet decisions based on perceptions of market movements. Afrinvest, Super and Delightful

I'm writing from my experience of years of dealing with about more than six different relationship officers, of course, over more than a few years. I've been to their office may be twice: first at the start of the business relationship, and later when I got curious to see an officer who'd bent over backwards (figuratively only, eh) to get stuff done. Better than good, these professionals. We like interactive stuff, eh, but this system works; they'll improve it.

They have a few negatives: their published research holds too much back (they've not explicitly denied this), and of course, the online thing. (They appear to have done an upgrade: see Welcome to Afrinvest (West Africa) Limited)


They have a few scanty details (%s only) in the prospectus, but in keeping with tradition, one could guess no clear list will be coming out soon. But a hint could be their "Afrinvest 50".
.

Avocado, if not that I already have an account with Afrinvest, I would have rushed down to Nigeria to open an account immediately . Unfortunately, my own experience has not been as superlative as yours...

By the way, where is this Mount Avo, Mount Cado, for I have searched far and wide and cannot locate these mountains? Abi it is just Mount Avocado, broken into 2 mountains

[hispy99]

Q & A with CEO Afrinvest West Africa
Posted Wednesday, August 13, 2008


Afrinvest assures of good returns on Equity fund

“Afrinvest (West Africa) Limited (“Afrinvest” or the “Company”) is a management majority-owned securities firm involved in investment banking, securities trading, asset management and investment research with a focus on West Africa.

Afrinvest emerged from the December 2005 investment by Afrinvest International in Securities Transactions & Trust Company Limited (“SecTrust”) which led to SecTrust changing its name to Afrinvest. Established in 1995, SecTrust was previously organised as an integrated securities brokerage, asset management and investment research firm with an enviable reputation in the Nigerian capital markets industry.


The Company today is organized along four major business lines: Investment Research, Securities Trading, Asset Management and Investment Banking. These businesses are supported by a diverse team of experienced professionals in Financial Control, Operations, Human Resources, General Services, IT Systems, Risk Management, & Compliance, and Legal & Regulatory structures.

Afrinvest is a leading independent securities firm in Nigeria, a leading provider of research content on the Nigerian market and a leading adviser to blue chip corporates across West Africa on M&A and international capital market transactions. The Company provides its broad range of institutional and retail clients with fact-based, innovative and bespoke financial services. Afrinvest is well regarded for its focus on international best practices in all aspects of its business” (Source: Afrinvest West Africa official website)


Proshare NI sought to find out more about Afrinvest West Africa and it’s just opened Equity Fund and the use of the proceeds amongst other plans for investors into the fund.


In this interview with PETER OBIORA of Proshare NI, Godwin Obaseki, Chief Executive Officer/Managing Director (CEO/MD) of Afrinvest, discusses issues bordering on the company’s recent Equity Fund offer, returns to investors and the reasons companies are raising fresh funds at this particular point in time.


Other issues highlighted include the recent situation of the Nigerian Capital Market and possible solutions. Obaseki also discussed ways of making good investment decisions and utilisation of the Afrinvest Equity Fund. Excerpts:



Afrinvest Equity Fund and timing

This is the best time by our analysis, if you look at the market today; you see a market where the share prices have been on the downward slide for the past three to four months. At the same time, you are seeing these companies whose shares has been going on the downward slide, making remarkable and improved earnings.


There are two factors at play, the share prices are coming down; while their earnings are going up. Four months ago, the Price to Earnings Ratio of a share was 25 today is about nine or 10 because of these trends.

However, this is not restricted to one or two companies; we have seen that across the board.

Therefore, it means that if the earnings continue to improve, the valuation of the company would be once in a lifetime opportunity and how do an individual take advantage of this.

It is not by going in with a couple of millions, it is by having a fund; with a very well thought out strategy coupled with professional management and analysis to go and take position in some of these securities, this is the reason we have approached the market at this time. There could not have been a better time than this.


Share prices on the downward slope and earnings rising

For instances, this is the month of August, for companies whose year end is December; we have seen a lot of them release their half year results.

Take a company like Nigerian Brewery Plc; they have released their six months result. The earnings growth of these companies, compared to the things they have done this year with the same period last year, there is a great improvement.


Like I said earlier, there are improvements in the earnings and the companies are doing well; however, the share prices are also coming down. Price Earnings (PE) Ratio, price coming down earnings going up reduces the PE ratio.


The above is one of the valuation yardsticks we use in selecting shares, when the PE of a company is low, it means that at the rate which a company is growing its earnings, it should be able to pay back its investment in a shorter period.


Thus, if you say PE is three, in an ideal setting, in three years time, at the way the company is going, it would have paid back any investment at the current price.


A company whose PE is three and share price is about N10.00, it means that in three years time, the rate of its earnings will be so high that it would have recovered all its investments.

Therefore, from evaluation standpoint, we are suggesting that it is beginning to make sense; because even if the economic environment is difficult, however, the fundamentals of the economy as a whole are still stable, the exchange rate is stable; the Naira is still appreciating compared to the Dollar.



Due to the fact that we are an import dependent country; the value of the exchange rate has a significant impact on inflation; a much more impact than interest rate.

Again, the external reserves are still huge; the government is not spending money frivolously. However, they have not invested in infrastructure as they should have done, though production and demand for goods and services are up; these are the things we are seeing in the economy now.


And it is the same thing that is reflecting on the companies’ results being produced.

Why many offers in the market at this particular time; including Afrinvest Equity Fund?


The Afrinvest Equity Fund is one of the pioneers; until now many approvals has been given and many people have not summoned on the courage to launch their offers.


Expert advice on the persistent bearish trend in the market

Most people who came into the market and do not know its workings would definitely go out the way they came in. The institutional investors would come in to take in the places of these people.

The business of a Pension Fund or Insurance Company is to invest, in the past; they have to be struggling with retail investors who never were able to do proper analysis on their investments.

Therefore, now, with the correction of the market itself, there is a sort of value showing up, we are going to see a lot of funds such as the Afrinvest Fund, Insurance Companies, Pension Fund Administrators, they are all going to begin to come back to the market and when they do this, they would contribute in stabilising the market.



These set of people are more rational and reasoned investors, you are not likely to see them speculating and borrowing aggressively as the individual investors have done.

Also, because of the large number of institutions who supported them with credit lines, they have now realised the risk of their actions, I am saying that the current trend is going to correct itself; but it is not likely to go back to the same situation were it was last year; were prices of securities was just going up without cheques and balances.


Market will correct itself, it will pick up and stabilise, but we are not likely to see the level of capital appreciation as we have seen in the past. Of course over the next one year, the market is still likely to be volatile in the sense that there are too many people that would like to go out or come in and prices would go up and down, but in the long run, the market will stabilise.



Is your reference to the Afrinvest Equity Fund as an Initial Public Offer correct?

An Initial Public Offer (IPO) is a first time a particular offer is going out and this is the first time the Afrinvest Equity Fund is going out and we would continue to offer it; because it is an open-ended fund, thus, we are quite correct to say it is an IPO; which will close on September 17, 2008.

Thereafter, the Manager of the fund would continue to offer it and at that point, it is no longer an IPO.


EDITOR’s NOTE: This suggests that buying into the Afrinvest Equity Fund does not mean buying into Afrinvest West Africa as a company.


Afrinvest Equity Fund and its open-endedness

It is a mutual fund, a unit trust; in this case, you have a Fund Manager; who you collect and give the money to. It is open-ended because at any point in time in the life of the fund, anybody can come in and go out, there is free entry and exit.


If you want to invest after the closure of the offer, you can bring in your money and invest, again, if you want to exit, we analyse the market and give you the value of your investment at that particular point in time.


To this extent, it is open-ended, but there are funds which are close ended; once the company has raised a certain amount, it ends there.


But in this case, we are raising N5.0 billion, but we are saying that is just the initial, thereafter, if more people want to invest, they are welcome. But if it was close-ended, we would have said that after the N5.0 billion, we would not take anymore, but return the rest money.

Usage of the Afrinvest Equity Fund

The funds would be used mainly in the equities market, we are going to be investing only in shares of companies that are listed on the Floors of the Nigerian Stock Exchange (NSE), we would not take the money to go and do any strange investment.


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[londoncool]

@Avocado,

You were sounding more or less like an Advocado (i.e Advocate) to me. After going through your post I was wondering if we were both trading/investing with the same company. I have been with them since the days of SECTRUST Ltd and in those good old days I could even log in to my account every day and have a sypnosis of my investments (cash and stock positions) on a daily basis. I do both long term and short term trading so I need to be ahead of my game and have an overview of my investments.I cant be bothered sending and receiving emails everyday with my account positions.

All the idealistic job specifications you mentioned being performed by Afrinvest Brokers & Account Managers are not exclusive services,they are what their contemporaries also do and they are not SUBSTITUTES for their inability to PROVIDE an EFFECTIVE and EFFICIENT basic IT platform for their clients ...just like most of their contemporaries.

The link you provided to their website is just a cosmetic face lift of a new webpage added due to the Equity Fund IPO, its nothing to do with the provision of an IT service to improve their business processes.

I have a very hardworking Acco