Mike Coffi, Managing Director of Ecobank Asset Management and President of the Association of Investment Management and Investment Management Companies (ASGOP *), presents through this forum the evolution of the asset management industry. UEMOA zone.
“At the level of the Association of Management Companies of UCITS and Heritage (ASGOP), our mission is to ensure the representation of the economic, financial and moral interests of our members by being the interlocutor of the public authorities, of to animate the collective reflection of the profession on ethical rules, the protection of savings and its economic role, the representation of investors, the evolution of management techniques and training, to contribute to the promotion and influence of management collective agreement with all stakeholders, investors, issuers, politicians and media in the WAEMU zone and internationally.
UCITS Management Companies (SGOs) are companies exclusively dedicated to the management of UCITS (Undertakings for Collective Investment in Transferable Securities) which include SICAVs (Investment Companies with Variable Capital) and Mutual Funds (Mutual Funds). ). The general principle is collective management.
The tremendous leap in assets under management
The asset management industry grew from 2012, although the first funds appeared in 2007. The value of the assets under management in the market was approximately 40 billion FCFA divided between 4 companies. management through 8 UCITS.
Thanks to the recovery of the financial market after the crisis of 2011, and the acceptance of the UCITS in the authorized investments of the insurance companies by their regulator, the value of the assets under management reached 700 billion FCFA in December 2017, managed by 18 actors and more than 60 UCITS.
In addition to institutional investors, this shows that household savings, once passive and confined within the banking system, are giving way to more active financial investments.
Several factors explain this remarkable growth of the industry. Among these we have:
The decline in term deposit rates.
The emergence of a middle class in the subregion.
The return of the diaspora, looking for innovative and dynamic products.
The performance of the BRVM between 2012 and 2016 was a good time for asset managers. The performance of the Blended Funds (Equities and Bonds) had for the most part, two-digit performance averages.
As President of the Association of Management Companies of UCITS and Patrimony (ASGOP), I encourage and I invite all the investors who wish to have an exposure to the BRVM, in particular those who have a weak knowledge of the markets and those with modest savings to delegate the management of their savings to UCITS companies.
The advantages of UCITS
Better risk distribution
Investing in UCITS makes it possible to invest in a large number of stocks and sectors of activity. The Funds thus offer broad diversification and a better allocation of risk in the event of high volatility in the stock markets.
If you invest a large portion of your capital in a single stock or bond, the value of your portfolio will depend on the performance of that stock or bond.
Management devolved to professionals
The funds are managed by professional portfolio managers. They select the best values for the funds, according to their objectives and ensure a rigorous and regular follow-up.
Thus, investors do not need to be investment experts or spend a lot of time and resources looking for the stocks and bonds in which to invest.
Mutated and reduced transaction costs
Direct investment in a security has transaction costs (BRVM, DC / BR and SGI fees) and custody fees.
As for the UCITS, it offers the investor the advantage of clearly identifiable costs (subscription fees and management fees) and their reduction thanks to collective management.
Our goal is to radically transform the savings industry, the asset / liability management of institutions and collective management.
The Association of Management Companies of UCITS and Heritage (ASGOP *) will celebrate its 20 years on 3 December 2018 in Abidjan.