Zedcrest unveils digital wealth management subsidiary.
New-age financial solutions powerhouse,
Zedcrest Capital Limited on Thursday February 20, 2020
announced the launch of a wholly-owned subsidiary and new
Investment/Asset Management firm aimed at digitally democratizing
investment in Africa.
The new company, Zedcrest Investment Managers (“ZIMVEST”)
will introduce digital private wealth and investment management, help
clients grow wealth by beating inflation and currency risks through
multicurrency investments, through best in class paperless processes
According to the Founder & Group CEO of the Zedcrest Group,
Saheed Adedayo Amzat, CFA, “ZIMVEST’s differentiating
factor will come from the renowned expertise of the Zedcrest group in
the global financial markets. This is evidenced by the leadership
position of its global markets business,
Zedcap Partners which bagged the 2019 best brokerage
service award of FMDQ OTC. The Group also has a wide distribution
experience garnered from setting up another subsidiary,
Zedvance, a top-three consumer lender in Nigeria.
The Chairman of Zedcrest Group and former managing partner
of Ernst & Young, Adebisi Sanda said: “The launch of the
Asset Management business ties in nicely with our plan to dominate every
important vertical of Financial services: our four pillars of global
markets, investment management, lending and payments.
“Despite some growth in the last decade, capital formation in Nigeria is
still relatively low compared to our frontier/emerging market peers. The
total AUM of the contributory pension scheme, at 10 trillion is just
under 10% of GDP compared to South Africa at 63% of GDP. The non-pension
AUM at about 1.2 trillion is very low and represents a clear growth
opportunity, one which we are going after.”
Gbenga Adigun, the newly hired head of Asset Management who
left his posh job at one of the country’s top three asset management
firm, believes ZIMVEST would leverage on the Group’s
remarkable capacities and capabilities to launch the firm into the top
five players in 5 years.
“I am delighted at the focus and vision I met on ground at Zedcrest
Group and excited at the unique opportunity we have to create
tremendous impact. In the coming months, we will be unveiling new
well-thought-through products to meet the investment needs of the
public. We would have propositions for the salaried employees,
entrepreneurs, HNIs, corporates, governments and family offices,”
He also showered glowing praises on the Management of the Securities and
Exchange Commission (SEC), for the support in granting the
operational license in record time.
With the current thrust of the Central Bank of Nigeria
(CBN) to drive inclusive growth in the economy, returns
have fallen tremendously as fund managers have been locked out of the
Juicy Open Market Operation market, in favour of foreign investors who
bring the much needed foreign currency inflows. Most fund managers are
expected to have negative real returns in 2020, a situation Zedcrest
attributes to the unusual dependence on risk-free government securities
A recent guideline from the CBN elongates the available CBN futures
yield curve to 5 years from 12 months. The management of Zimvest
believes this is to encourage foreign direct investment in critical
sectors of the real economy and would significantly give Nigeria a
“The Nigerian rising narrative is about to be rekindled and we believe
this is the best time for us to be setting up. We have a clear
opportunity to bring alternative investments products to the market and
reduce the focus on government securities. We would be creating products
for underlying investments in infrastructure and the agricultural value
chain,” noted Stella Duru, another Zedcrest Director.
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