Meristem Wealth Management Limited (MWML), has emerged Nigeria’s first indigenous asset manager to meet the strict Global Investment Performance Standard (GIPS). The GIPS asset management compliance standard typically validates a company’s operational transparency and its pursuit of the best global practices in the management and reporting of the details of customers’ investment assets. The reported compliance status attained by MWML places it in the ranks of some of the world’s top asset management firms. Speaking at the declaration in Lagos, last week, Managing Director, MWML, Sulaimon Adedokun, said the investment management industry revolves around developing frameworks for surpassing client investment expectations a concept Meristem has coined as ‘Clientocracy’. Sulaiman explained that GIPS provides wealth managers with a standardised methodology of performance measurement and reporting that is consistent with global practices of some of the best asset managers. He said GIPS makes it easy to compare the performance of asset management firms across the globe regardless of location, whether they are in Lagos or London, Cairo or Cape-town, the metrics of performance are the same. “The decision to adopt GIPS is voluntary and establishes a universal benchmark by which corporate wealth managers can be trusted and verified, a status only a handful of firms have attained globally.” Former President of the CFA Institute Nigeria, Mrs Sade Odunaiya, congratulated the company for putting Nigeria on the global map as far as GIPS reporting standard is concerned.She explained that what the International Financial Reporting Standard (IFRS), is to the accounting profession and banking industry, GIPS is to the investment management sector.Mrs Odunaiya was pleased that Nigeria now has a firm that is in full compliance with GIPS.   Culled from: guardian.ng

Meristem Wealth Management Limited, a subsidiary of Meristem Securities Limited has boosted investor confidence with compliance to the Global Investment Performance Standard (GIPS), emerging the first asset management firm in Nigeria to claim compliance. With this feat, it means that the firms reporting standard could be comparable to what obtains in other advanced markets, which enhances investors confidence in the areas of transparency, risks management and ethical practice. The Global Investment Performance Standards (GIPS) are guidelines created by the Chartered Financial Analysts (CFA) Institute to provide ethical framework for the calculation and presentation of the performance history of investment management firms. Sulaimon Adedokun, head, Wealth Management, Meristem Wealth Management Limited speaking at the Meristem GIPS Compliance declaration event in Lagos said this will ensure that the asset management unit’s processes, policies and procedures are committed towards ensuring that performance results, calculations and presentation to clients are done in accordance with the industry’s best practices and standards. “This then makes it comparable to how same performance results would have been calculated and presented if the clients were based in Germany, Toronto, Tokyo, North America and other parts of the world.” Adedotun stated that compliance to GIPS make the rest of the world look at Nigeria’s Meristem as a global firm in international standard, stating that it aligns with its commitment to professionalism and integrity with customer at the core of its growth drive. ‘Becoming the first and only Nigerian Asset Management firm to claim GIPS compliance is simply Meristem Wealth Management Limited living out its brand promise to grow wealth for our clients’ in good time and an atmosphere of transparency.” Folasade Odunaiya, past president of CFA Society of Nigeria who represented the global organisation said with compliance to GIPS, Meristem Wealth Management Limited is sitting on the right ground to offer services to global investors. “This is window to global opportunities as investors all over the world will going forward be looking to what Meristem is doing, and this will guarantee sustainability”. Kehinde Ibrahim, head, Portfolio Management, Meristem Wealth adding his voice said “For us a firm, GIPS compliance is something we are happy to complete”. Going forward, our reporting can be placed side by side with other global fund managers. “Claiming compliance with GIPS is no mean feat but it’s worth achieving for the investment terrain in Nigeria and for the sake of our treasured clients who have given us the privilege to serve them. We constantly seek to be open and transparent in all our dealings with our clients, they have our best assurance as we have successfully walked our talk in becoming the first and only GIPS compliant firm in Nigeria, the Company said. Culled from: Business Day

The Deputy Group Managing Director of Meristem Securities Limited, Sulaiman Adedokun, speaks on the state of the capital market, among other issues, in this interview with STANLEY OPARA How would you rate the performance of the capital market this year? The capital market is a demand-supply relationship for investment and capital. The performance can therefore be better reviewed along the line of capital availability (such as savings, pension system, Foreign Portfolio Investment, law, and so on); investment opportunities (market capitalisation, number of firms, among others); and the macro-environment (the Gross Domestic Product growth, Gross National Income Index, population, political commitment, corruption). The performance of the capital market so far has been a bag of mixed fruits. The bond market has enjoyed a high yield environment with average yield increasing from 10 per cent at the beginning of the year to 16 per cent in October. So, in terms of income stream, the bond market has been very positive. However, given the inverse relationship between yield and prices, bond portfolio valuations have taken a hit. On the other hand, the equities market has been tempered with a year- to-date loss of 4.06 per cent and the level of risk aversion is evident in the 95 per cent gain in the New Gold Exchange Traded Fund. This market underperformance is a reflection of the headwinds in the broader economy, recession, inflationary and exchange rate pressures, high unemployment and underemployment, trade deficit, fiscal fragility and others. The NASD Over-the-Counter market has shown some resilience with a gain of 7.9 per cent in 2016. The OTC market is getting deeper with more admitted securities, and corporate disclosure has been improving. When, in your view, do you see the market rebounding? The economy should begin to emerge from the trough when net export recovers and government spending ramps up with significant multiplier impact on consumption and investment. At this point, we expect monetary policy to switch to an expansionary stance to solidify the gains. As the economy recovers, the equities market is expected to amplify the signals as it typically does at initial recovery phase of the business cycle. Earnings are key drivers of the equities market performance, and as the macro headwinds dissipate, corporate scorecards reflect same and the investors respond appropriately. Market rebound will also have to ride on strong demand, which should outweigh supply. The investment import of this cycle is that those who will emerge with strong return outperformance will not wait until the recovery is apparent before taking investment decisions. What is your ideal model for increasing domestic participation in the market? There is no perfect model for increasing domestic participation in the market. Each has its pros and cons. Although I pitch with the retail strategy, there should be a good compliment of institutional investors so that shocks are not easily amplified and do not unnecessarily persist in the market, which is the case for a retail-dominated market. The power of the retail market segment is enormous; there has