LATEST UPDATES
Card-image-cap

Market | ETFs

NSE CEO’s Welcome Address at 2018 Exchange Traded Products Conference

Dec 05, 2018   •   by   •   Source: Proshare   •   eye-icon 2574 views

Wednesday, December 05, 2018 / 04:35 PM / NSE

 

2018 ExchangeTraded Products Conference

Welcome Addressby Mr. Oscar N. Onyema, OON

Chief ExecutiveOfficer, The Nigerian Stock Exchange December 5th, 2018

 

Good morningdistinguished ladies and gentlemen: 

 

On behalf of thecouncil and management of The Nigerian Stock Exchange (NSE), it gives me utmostpleasure to welcome you to the annual ETPs Conference tagged “Exchange TradedProducts: Evolving investment themes, Accessing New Markets and EnhancingPortfolio Alpha”. We are indeed pleased to host this event, the fourth in aseries of expository discussions and strategic dialogue on the development ofthe ETPs market in Nigeria.

ETPs are one ofthe most significant financial innovations in recent decades and have shapedthe financial markets. Since the introduction of ETPs in 1993, they have gainedwidespread acceptance in most developed markets. Over the last 15 years,investors’ demand for ETPs (both retail and institutional) has grownremarkably, which in turn has led to a greater variety of products offered byETP sponsors. 

Globally, ETPshave grown remarkably this year recording net flows of approximately $358bn asat October 2018. According to ETFGI, the Global ETP industry had close to15,000 ETPs listings on 71 exchanges with assets of about US$5tn cutting across392 providers at the end of October 2018.  

It is interestingto note that equity-based ETPs make up 76.7% of global ETP listings whilstFixed Income based ETPs represent 16.7% of listings, similar to the asset splitin Nigeria. 

The cross-listingof ABSA’s Newgold ETF on the Nigerian Stock Exchange in December 2011, openedup the ETPs market. Since then, the ETPs space has grown steadily by acumulative average growth rate of 8% over the last 4 years. Currently, thereare 9 ETPs listed on the Exchange – 2 thematic ETFs providing access toPension-compliant and Shariah-compliant stocks, 2 broad equity market ETFstracking the NSE 30 Index, 3 sector based ETFs, 1 commodity ETF, and 1 bond ETFtracking exposure to benchmark FGN Sovereign Bonds. 

The introductionof ETPs is one of the Exchange’s strategy to enhance diversification as well asbroaden the options available in the capital market to support the efficientimplementation of investment strategies across diverse asset classes andinstruments.  

I would like touse this medium to encourage ETP product issuers and intermediaries to expandtheir footprint by broadening distribution channels, introducing other assetclasses/strategies, entering new markets, leveraging technology and dataanalytics to understand the market and demand. This year, in collaboration withissuers, we have focused on diversifying the ETPs space by supporting newproduct development and thus expect the launch of new ETPs in the short term. 

Today, we aregathered to expand the discourse on ETPs in terms of enhancing domesticcapacity as well as improving collaboration amongst participants in theecosystem - product strategists, issuers, intermediaries, advisers, investmentmanagers and investors. 

This conferenceis aimed at providing insights on emerging themes as well as fosterunderstanding of ETPs as convenient vehicles and investment management toolsfor accessing other markets.

 

Discussions atthis conference will amongst other things;

  • Seekto identify solutions to challenges in the domestic market, as well as considerthe potential for cross border listing of securities in Africa;
  • Expand the dialogue regarding the integration ofAfrican Financial Markets via the issuance of ETP vehicles and Depositoryreceipts;
  • Provide the investment advisory and broker-dealercommunity with an understanding of their roles in distribution and capitalmobilization, as well as
  • Provide direction to ETP Issuers to support productdevelopment efforts in the medium term.

 

Leading today’sall-important conversations are two of the most recognized ETF strategists outof Europe and Africa – Ms. Debbie Fuhr and Mrs. Nerina Visser as well as acarefully selected panel of thought leaders across Africa’s investmentmanagement industry. I thank our speakers for their support and valuableperspectives and all our distinguished guests for making time to be here. 

Let me concludeby expressing our gratitude to our sponsors – ABSA, Meristem Wealth Management,Stanbic IBTC Asset Management, Vetiva Capital Management, Afrinvest AssetManagement, Lotus Capital and the Fund Manager’s Association of Nigeria (FMAN)for their kind contributions to this event as well as their unwavering supportand commitment to the growth of the ETP segment of our market. 

Finally, to theteam at the Exchange that put this conference together – thank you very muchfor your efforts in making this a successful event. 

I trust that thisconference will provide in-depth coverage of the various benefits of ETPs aswell as address trends in the global and domestic ETPs space in terms ofadoption, disruption and evolving investment strategies. I urge us toparticipate actively and look forward to fruitful discussions.

 

Thank you.

Oscar N. Onyema,OON

Chief ExecutiveOfficer


 Proshare Nigeria Pvt. Ltd.


Related News

1.      NSE ETF Market CapitalisationDeclined by 2.57% to N7.43bn in May 2018

2.      Assets InvestedIn ETFs and ETPs Listed In Middle East and Africa Fell By $343m In April 2018

3.      CBOE RecommendsThat The SEC Allows Bitcoin Exchange-Traded-Funds

4.      Global ETFs in2017

5.      ETF MarketCapitalization Grew by 0.91% in October 2017

6.      Month of AugustRecorded Inflow into the ETFs Market

7.      Taiwan StockExchange and Nasdaq Sign Memorandum Of Understanding

8.     Christmas ComesEarly for Nigerian ETF Investors

9.      Dubai FinancialMarket Launches First-Of-Its Kind Regional ETF Trading Platform

10.  NSE Admits SIAMLPension ETF 40 to its Daily Official List

11.   AfDB appointsMCB Investment Mangt as Fund Manager for its 1st Fixed Income ETF in Africa

12.   ETFs remain KINGas investors’ confidence frail towards stocks

13.   Quarter ofInstitutional Investors to Capture Emerging Market Rebound through Index TrackingStrateg

14.   Deepening theNigerian Capital Market - A Case for Exchange Traded Funds

15.   Dubai FinancialMarket Welcomes the Listing of Afkar Capital’s ETF

16.   New PowerSharesEquity Index ETF Launched On Xetra; Tracks Firms from Emerging Countries

17.   Nigeria’s NewGold ETF Returns 16.27% in Q1 2016

18.  Stanbic IBTCAsset Mgmt Announces Closure of Register for Its ETF 30

19.   Cross listing ofExchange Traded Funds on African Exchanges opens door for Nigeria, Kenya and SA

20. AfricanExchanges Move to Improve Liquidity; Plans Cross Listing of ETFs


Proshare Nigeria Pvt. Ltd.

Get the App

apple-store  play-store

Connect with us


Proshare is a professional practice focused on delivering research and information services to bridge the gap between investors and markets; by delivery on credible, reliable, and timely engagements through the following areas — Impact Research, Market Intelligence, Strategic Advisory, Stakeholder Relations & Digital Media.