Business

Asset Management Industry Emerged Strong from COVID-19 Pandemic, Crossing $100 Trillion Threshold – BCG Report

Published

3 years ago

July 8, 2021

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Asset Management Industry Emerged Strong from COVID-19 Pandemic, Crossing $100 Trillion Threshold – BCG Report

BCG

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Despite the far-reaching effects of the COVID-19 health crisis, global assets under management (AuM) grew by 11% to reach $103 trillion in 2020, although operating profits did not follow suit—remaining stable at around 34% of net revenues as a result of cost pressure and fee contraction across all asset classes—according to a new report from Boston Consulting Group (BCG). The report, titled Global Asset Management 2021: The $100 Trillion Machine, was released on Thursday, July 8, 2021.

The 19th annual BCG study of the global asset management industry reveals that global net inflows reached $2.8 trillion in 2020, or 3.1% of the total AuM at the beginning of the year—compared to a historical average of from 1% to 2% over the previous decade. Retail investors were the main drivers of AuM growth. The report also examines how new realities—for example, in markets and technology—will determine future industry leaders and why specific areas such as private markets, ESG investing, and advanced data and analytics are likely to play key roles.

According to the report, retail AuM portfolios grew by 11% in 2020, representing 41% of global assets at $42 trillion. Institutional investments grew at a similar pace to reach $61 trillion, or 59% of the global market. North America retained its position as the world’s largest asset management region, with AuM increasing by 12% to reach $49 trillion. Growth was strong across other regions as well, with Europe at 10%, Asia-Pacific at 11%, and the Middle East and Africa at 12%.

“The asset management industry is coming out of the global crisis with significant changes, especially in distribution,” said Lubasha Heredia, a BCG managing director and partner, and coauthor of the report. “These present challenges but also multiple opportunities for growth. The next big task for all industry players will be to carve out a suitable growth strategy as they refocus on the core areas of differentiation and advantage, which could be any combination of client engagement models, investment products, operating models, or talent strategy.”

The report says that passive investments continued to lead in market share, increasing AuM by 17% globally during the year, bolstered by strong net inflows and market growth. This trend is expected to continue over the next five years, with growth forecast at 9% annually. Although AuM for traditional and specialized active assets also expanded—with core products such as large-cap equity funds and domestic government-based fixed-income funds up by 11% during the year, money market funds up by 12%, and specialized active products up by 9%—the report forecasts that these will be the slowest-growing product groups over the next few years.

The year 2020 saw strong performance once again from alternatives, with AuM growing by 11% for the year and capturing 40% of the industry’s revenue despite representing only 15% of global AuM. The report takes a deep dive into private markets, in light of the opportunities for growth and transformation in the sector over the next few years. BCG sees potential for big wins in private markets, especially for firms that can successfully enter the retail market, systematically use data and analytics to enhance decision making, and integrate meaningful ESG metrics.

The 2020 pandemic forced asset managers to accelerate transformation throughout their businesses, but nowhere has change been more of a priority than in the distribution function.

“The next generation of distribution will combine advanced digital capabilities with the human touch,” said Simon Bartletta, a BCG managing director and senior partner, and coauthor of the report. “The early achievements we are seeing that have been gained from asset managers investing in digital distribution are truly impressive.”

Business

AIGBOJE AIG-IMOUKHUEDE APPOINTED PRESIDENT OF FRANCE NIGERIA BUSINESS COUNCIL

Published

8 hours ago

May 14, 2024

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AIGBOJE AIG-IMOUKHUEDE APPOINTED PRESIDENT OF FRANCE NIGERIA BUSINESS COUNCIL

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

At the esteemed Choose France Summit 2024, held on Monday, May 13, 2024, Aigboje Aig-Imoukhuede, the Chairman of Access Holdings PLC, was formally appointed as the President of the France Nigeria Business Council (FNBC) by the President of the French Republic, President Emmanuel Macron.

Aigboje Aig-Imoukhuede having a handshake and a tête-à-tête with President Macron at the Council’s meeting with the President, and Gilbert Chagoury looking on.

The France Nigeria Business Council (FNBC) stands as a pivotal coalition of Nigerian private sector business leaders, committed to enhancing bilateral relations between Nigeria and France. Its core objectives revolve around the facilitation of trade, investments, infrastructural development, job creation, and cultural integration between the two nations.

Since its establishment in June 2021 under the auspices of President Emmanuel Macron, the FNBC has diligently utilised its member network to champion investments across key business sectors, fostering cultural understanding and driving economic growth between Nigeria and France. Notably, it has catalysed Nigerian businesses’ ventures into investment opportunities within France.

Comprising 13 distinguished members, the Council boasts prominent figures including Aigboje Aig-Imoukhuede (President), Abdul Samad Rabiu, Gilbert Chagoury, Mike Adenuga, Aliko Dangote, Jim Ovia, Tony Elumelu, and John Coumantaros. Additionally, Kola Karim, Leo Stan Ekeh, Daisy Danjuma, Gbenga Agboola, and Jean Haas serve as integral members, with Jean Haas holding the position of Secretary.

Aig-Imoukhuede’s appointment follows the passing of Herbert Wigwe, the Council’s former President, in February 2024.

Aigboje Aig-Imoukhuede having a handshake and a tête-à-tête with President Macron at the Council’s meeting with the President, and Gilbert Chagoury looking on.

The Choose France Summit is an annual gathering that convenes business magnates, investors, and governmental dignitaries to explore investment prospects within France. The highlight of the Summit was the Presidential Dinner, characterised by high-level engagements and mutual commitments between participating parties.

Business

ACCESS BANK (SL) LTD STRENGTHENS LEADERSHIP TEAM WITH KEY BOARD APPOINTMENTS, NAMES NEW CHAIRMAN

Published

1 day ago

May 13, 2024

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AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Access Bank Sierra Leone Ltd (‘Access Bank (SL) Ltd’) has announced the appointment of new executives to its Board of Directors (‘the Board’), further strengthening its leadership team and advancing the implementation of its growth and transformation strategy.

These appointments also reflect the Bank’s commitment to fostering growth and development while maintaining the highest standards of governance and stewardship.

Joining the Board as Non-Executive Directors are Maurice Nathaniel Cole, Nsikak N. Usoro, Michala Mackay, Ibrahim Khalil Lamin, and Kolawole Augustine Ajimoko.

The appointees boast a wealth of expertise from diverse sectors, including banking, telecommunications, corporate governance, compliance, and finance. Their combined experience and vision will contribute to shaping the future trajectory of Access Bank (SL) Ltd.

Cole will serve as Chairman, following the exit of Alice Marie Onomake and will bring his experience to the fore as Access Bank (SL) Ltd works to consolidate its market position and deliver value for all its stakeholders.

“We are thrilled to welcome our new executives to Access Bank (SL) Ltd,” said Ganiyu Sanni, Country Managing Director, Access Bank Sierra Leone Ltd. “Their leadership and vision will be invaluable as we navigate through challenges and pursue sustained success. We extend our gratitude to outgoing Chairman, Alice Marie Onomake, and Non-Executive Director, Aminata B. Dumbuya, for their dedicated service and contributions to the Bank.”

Access Bank (SL) Ltd remains committed to excellence, transparency, and accountability as it embarks on this exciting new chapter. The Bank looks forward to leveraging the collective expertise of its leadership team to drive innovation, foster growth, and create lasting impact for its customers and communities.

Business

Access Holdings Vests 23.8 million Units of Shares on Senior Executives

Published

6 days ago

May 8, 2024

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AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

In line with the disclosure requirements of the Securities and Exchange Commission and the Nigerian Exchange Limited, Access Holdings Plc , Africa’s leading financial services group, has announced the award of 23.8 million ordinary shares to some of its senior executives and executives of Access Bank, its flagship subsidiary.

This is in pursuant of the terms of its shareholders approved Employees Performance Share Plan.

Bolaji Agbede, the Acting Group Chief Executive Officer of Access Holdings, Roosevelt Ogbonna, the Managing Director/Chief Executive Officer of Access Bank, and six others were vested with 23,883,790 units of the Group’s shares, worth a combined N427.13 million.

This was disclosed via notices duly filed with the Nigerian Exchange Limited on Tuesday.

According to the filings, Ogbonna got the highest amount of shares totalling 12,345,679 units and worth N220.37 million, having been traded at N17.85 per share.

Agbede was vested with 2,216,992 units of shares, valued at N39.795 million.

Other directors, who had shares vested include Seyi Kumapayi, Executive Director, African Subsidiaries, Access Bank, with 1,234,568 worth N22.16 million; Iyabo Soji-Okusanya, Executive Director, Commercial and Investment Banking Division, Access Bank, with 1,691,308 at N17.95 per share.

Her vested shares are valued at N30.36 million, and Chizoma Okoli, Access Bank’s Deputy Managing Director, Retail South, who got 1,728,395 units valued at N30.85 million.

Dr Gregory Jobome, Executive Director, Risk Management, and Hadiza Ambursa, Executive Director, Commercial Banking, were each vested with 1,728,395 valued at N30.85 and N31.02m respectively.

Access Holdings’ Company Secretary, Sunday Ekwochi, was vested with 1,210,058 units of the Group’s shares worth N21.72m.

The shares were vested on May 3rd and May 6th.

The vesting of the shares is not a purchase or sale transaction in the context of the Exchange’s Rules.