“Fund managers are finding it difficult to cope”
The fund managers are currently having problems in their operations, with the exception of Kakawa Guaranteed Income Fund and a few others including Legacy Fund owned by FCMB which really guaranteed your income because they have been the ones that are able to strive well and pay dividend.
But the other ones like Heritage have been in existence since 2008 and since then this is the first year they are able to pay just N10 dividend. With that we cannot rate them as a manager with substantial value when it comes to their relevance to the interest of the investors.
What I am trying to say is that most of them are just trying to survive; they have not been able to grow to the extent that they can be profitable to the managers and the investors.
Currently they have problems even the one set up by other banks including Union Bank could not strive well in the market. The reason why I think most of them cannot do well is because they relied greatly on shares. So if share does not do well, they will not do well too. Just as they are trying to survive, they want to grow and they still have administrators to pay.
With all these, they still have running cost which they want to manage and if possible cut to the lowest level and managing these together with the current market atmosphere, they have not been able to make much progress; with the exception of those ones I mentioned, all of them cannot cope.
WAHEED SHONIBARE:
For almost five years after buying into this particular fund, this is the first time they are paying dividend. And instead of them to work on how they can be more profitable, they are giving excuses for their bad performances.
I have almost ten fund managers, including the Heritage, Kakawa, and most of them are not doing so well. One of these funds has recently requested that the unit holders approve a proposal that AGM be held only when the managers or the majority unit holder requested for it.
The question one may want to ask is; how will they perform well without a watchdog role of the investors when they skip AGMs if currently now that the investors are putting pressure on them to do well, they are not doing so well?
The reason they gave for thinking to embark on this is to be able to cut the operational cost while plowing the money they could have spend organizing AGM back to the return of the investors. But to us as unit holders, these are not enough reasons why they should not hold AGM, it is just a way to avoid investors from coming in contact with them which is not good enough for their operations.
It is during the AGMs that they give the report of their performance and be it good or bad, the unit holders are ready to receive it, but not to get any report is what is bad and the act also did not support such practice and that is the more reason why we also reject it. That they will improve on posting financial statements and reports through soft and hard formats is also not acceptable because we have not made much progress in using these things.
INVESTOR ADEWALE:
The AGM is the platform where they tell Unit Holders about their profit and loss and they give explanation for their performance. And if they said they want to do this because they can get the reports across to the Unit Holders both in hard, soft and electronic formats, not all investors are electronic covered.
Moreover, most of the DVDs they send do not open except one uses a computer system. I have many at home that I could not access rendering them useless at the same time resulting to a waste of funds.
If you go by what is available in the market today; a situation whereby it is a week after AGM that you are receiving the reports and financial performance in your mail box, and when you send mail to these companies requesting for explanations on certain issues, they find it difficult to respond and when they send copies to you, you cannot access it and those times you are able to, it is usually late often weeks after the meeting that you receive the reports.
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