At the 2024 Investment Advisers and Portfolio Managers (IAPM] Conference held in Lagos on Friday, the attention of institutional investors especially pension funds was drawn to the huge funding cap in the infrastructure sector and the potential for high returns on investment for pension funds.
The President and Council Chairman of IAPM, Abimbola Olashore, in his welcome address, noted that the conference with the theme “Driving Economic Growth and Development Agenda with Pension Fund – The Role of Investment Professionals”, seeks to analysis the great potentials in infrastructure sector with high rate of returns for institutional investor and also to proffer solutions to the challenges hindering pension fund investments in infrastructure.
He said institutional investors, in particular pension funds, play a major role in the financing of long-term productive activities that support sustainable growth in infrastructure sector, while noting that before pension funds could commit large capital to a project such as in infrastructure, there must be transparency, long term and efficient regulations governing the sector and also such investment will be made possible only if investors are able to earn adequate risk-adjusted returns and if appropriate market structures and risk-free financial securities are in place to attract pension funds.
Mr Oluwole Oshin, the Group Managing Director of Custodian Investment Plc, in his keynote address, noted that Pension funds are the bedrock of retirement security for millions of people across the globe, adding that they are not just money set aside for the future, but powerful tools that drive economic growth, stability, and innovation.
According to him, with the Nigerian pension funds valued at N18.36 trillion at the end of 2023, the funds cannot be ignored as they constitute the largest institutional investor, adding that these funds provide financial security to retirees, provide capital supply as the major suppliers of capital in the financial markets.
He noted that investment professionals, in playing their role in ensuring that funds are managed effectively, balancing risks and returns to meet the needs of retirees, contributed to economic developments.
Looking at the crucial role of investment managers, Oshin therefore emphasized the importance of operating within the framework of regulations that aim to protect investors and ensure market integrity.
He noted that staying compliant, while seeking optimal returns demands the understanding of the regulatory requirements and commitment to ethical standards, while adding that investment professionals should be adept at managing the financial market volatility while protecting the interest of the retirees.
In his goodwill message the Director General of the Securities and Exchange Commission (SEC}, Dr Agama Emomotimi, assured the investment professionals of the support in carrying out their duties.
Represented by the Commissioner of Operations, Bola Ajomale, the DG noted as the Commission, SEC enables all aspects of the capital markets to actually grow including pension industry, thus he said the commission is open to innovative ideas.
The Association of Investment Advisers and Portfolio Managers (IAPM}, the parent body of the Association of Corporate and Individual Investment Advisers of Nigeria (CIAA}, for the year 2024 inducted nine new Fellow Members as well as 29 Associates Members.
