• Excellent value in the MTN Nigeria share offer

     

    MTN Nigeria Communications (MTNN) is Nigeria’s largest telecommunications provider. The company is a subsidiary of MTN Group South Africa (Africa’s largest telecoms operator) and the most significant contributor to the group’s earnings


    Download Report

  • 2021 Winner

     

    Asset Management Firm of the Year

    Investment Research House of the Year

    At the BusinessDay BAFI Awards

  • Equities for a Superior Return

     

    This report challenges the widely-held opinions about Nigerian investments, in particular views about the equity market.
     



    Download Report

  • Nigerian banks: Resilience built in

     

    The report shows the remarkable resilience of Nigerian banks’ earnings and provides some insight into  banks’ Net Interest Margins, spreads, growth and overall profitability.
     



    Download Report

  • Comparing Mutual Funds - Apples and Oranges

     

    This report addresses developments in Nigeria’s fast-growing Mutual Fund industry where the total assets under management grew by 50% to Naira 1.57 trillion last year.



    Download Report

  • Shifting the Appetite of Nigerian Investors: From Savings to Mutual Funds

     

    A growing industry in need of risk management and performance data


    Download Report

  • Asset management

    We are a trusted fiduciary that is focused on delivering investment solutions for our diverse range of clients based on our broad and accurate insight of financial markets.

MTN Public Offer

MTN Group is undertaking a public offer for shares on the NGX Exchange of up to 575 million shares (3.7% of its holdings) in MTN Nigeria by way of a bookbuild to institutional investors and a fixed price offer to retail investors.

The retail offer opened on 1 December and closes on 14 December.  The offer price is N169/share. The minimum subscription is for 20 shares and a bonus share of 1 for every 20 shares is available for purchases of up to 250 shares.

The offer represents excellent value for investors. At the offer price, the shares trade at a Price/Earnings (PE) ratio of 11.6x our forecast of 2021 Profits After Tax, and a PE of just 9.1x our forecasts of 2022 Profits After Tax. They trade at 5.4x 2021f and 4.8x 2022f ev/ebitda. The historic dividend yield for the stock is 5.5% and this is expected to increase.
 

Download Report
 

Equities for a Superior Return

By Guy Czartoryski


Can Nigerian listed equities, if properly selected, really deliver an adequate return to investors over the long term? The answer is, surprisingly, yes.

Take an investor with N1,000,000 at the beginning of 2016. If the investment had been in the NGX All-Share Index then the compound annual return (CAGR) up until now would have been 6.57%.But the total return, including gross dividends reinvested, would have been a CAGR 12.14%. 

Now, what would have happened if the investor had invested in the 10 stocks which we identify as having high and sustainable ROEs?  In this portfolio, note, there is no allowance for market capitalization, just a division of the money into 10, one unit for each stock.

In this experiment our investor would have received a CAGR of 16.4% pa over the period from 1 January 2016, even without reinvesting dividends. However, what really matters is the total return, namely the return with dividends reinvested.  Here the return would have been a CAGR, from 1 January 2016 until now, of 24.2%.

Which stocks are in our High Return Portfolio? Read our full report to find out, please click the link below.


Download Report
 

What we do

We build strategic partnerships with each one of our clients – including retail, ultra and high net-worth individuals, financial advisers and institutions – in order to fully understand their financial requirements, and to develop products and services that deliver optimal returns while effectively managing risk.
 
In sustaining the trust with our clients, our highly experienced asset management team upholds the principle of transparency in executing all its investment decisions. This process of corporate governance is ensured by the ongoing due diligence carried out by our dedicated Investment Management Committee.

Investment philosophy and approach

We are committed to value investing; as such, we strongly believe that asset prices will reflect their true value over time. Through diligent research and the application of qualitative skills based on experience and quantitative investment tools, we identify underlying assets and securities that will outperform over time when building investment solutions for our clients. Our research is carried out using a combination of top-down and bottom-up approaches, beginning with the evaluation of trends in global financial markets and assessing their implications on regional and domestic markets.

Our investment management approach involves five integrated steps: a comprehensive understanding of our clients, the assessment of economic and capital market expectations, the design and implementation of an agreed investment strategy, the continuous monitoring and rebalancing of our clients’ portfolios, and the transparent reporting of performance.
 
We believe investment risk should be properly analyzed and understood. Thus, our investment solutions entail the adoption of robust risk management practices that adequately and efficiently capture, measure and manage risk. 

 

Our services

We offer our clients the opportunity to create investment solutions based on a diversified portfolio by investing in global and domestic markets across multiple asset classes, including fixed income, money market, publicly and privately listed equities, real estate and commodities.