Anchoria Asset Management (AAM), a member of VFD Group stands out as a robust player in the asset management industry with strong network in the capital market, and delivering quality returns on investment to clients. In this interview with Business Day, the company unveils its unique propositions for clients, product chain and experience.
Tell us about Anchoria Asset Management, your market position, and how you leverage your experience and financial strengths in the Nigerian financial and real asset markets?
At Anchoria Asset Management, our strength lies in fixed-income investments, where our expertise in managing bonds and various debt securities has propelled us to the forefront of the industry. We are also pioneers in low-cost investing, we are renowned for our relatively low management fees, and entry fees in our mutual fund products. Our funds are designed to be easily accessible, making investment opportunities available to a wider range of investors and promoting inclusivity in market place.
How do you differentiate your investment products, especially those focusing on capital preservation, income generation, and asset class diversification?
Through our flagship mutual funds, investors are able to preserve their capital and earn returns on their investments. The reality is that because mutual funds contain a pool of securities, your investment are easily diversified, since other instruments are available to cushion the blow when one or more instruments performs poorly, thus lowering your overall risk. Mutual funds have repeatedly proven to be one of the simplest and most fundamental ways to diversify your portfolio. Depending on your risk appetite, our mutual funds are grouped into several categories based on the kinds of securities they invest in, their investment objectives, and the type of return investors seek. For instance, investors with a low threshold for risk can opt for the money market mutual fund as this minimizes risk and preserve the principal amount invested. While investors with a medium to high-risk appetite can opt for fixed income and equity mutual funds given their potential of generating high long-term returns.
Could you provide insight into your risk management principle and how it ensures preservation of capital for clients?
AAM prioritises risk management, actively assessing and adjusting portfolios to preserve and grow wealth. Our lean structure allows us to be quite responsive to developing market conditions. We lock in quick investment gains when the opportunities arise and reposition ourselves for further opportunities. This positions us competitively within the asset management industry. At the centre of our philosophy is the belief that market downturns present opportunities. Thus, we adeptly navigate these market shifts, allowing us to effectively ride the curve. This is evidenced in the recent success of our equity mutual fund, which has achieved an impressive annualized return of 40 percent. This performance extends to our broader portfolio returns as well. This, coupled with our emphasis on consistent investments serves as a conduit for clients to realize the accumulative benefits that stem from investing over time.
In a landscape with numerous investment platforms, how does AAM prioritize clients’ best interests and maintain client-centric focus in her services?
For us, the key to crafting success stories for our investors has been to offer tailor-made investment solutions. We recognize that each investor’s journey is unique, and our approach reflects this understanding. Through this tailored approach, we have not just achieved immediate gains but also paved the way for generational wealth to thrive amongst our clients. Our commitment to a client centric approach extends to our retail clients, who benefit from the convenience and accessibility offered by our mobile app, SEEDs by Anchoria. This innovative tool goes beyond conventional platforms, recommending investment products based on factors such as investment amount, risk appetite, and client profile. In essence, we embark on the investment journey with our clients, providing guidance and support at every step.
Can you detail the range of investment products and services that is available in your kitty?
AAM offers a diverse array of investment products and services for our clientele base including conventional products like money market and fixed income mutual funds that provide a solid foundation for investors. Going beyond the conventional, we offer investors exposure and access to distinct markets through other pooled funds such as our Eurobond and Treasury linked notes. These funds are designed to efficiently meet the diverse objectives and risk appetites of our investors, offering innovative solutions in the investment landscape.
Our core services encompass wealth management, portfolio construction and management, as well as financial planning and advisory.
What would you say are your comparative advantage in the market?
Our access to niche investment opportunities sets us apart, offering clients distinctive avenues for diversification. This allows us to offer our clients distinctive investment avenues, contributing to the diversification and robustness of their portfolios. Our investment management team’s expertise and experience in the capital market also adds as our competitive edge.
Considering Nigeria’s investment outlook, how does AAM align its strategies with government initiatives to attract foreign investments and diversify the economy?
At Anchoria Asset Management, our seasoned investment team provides us with a competitive edge in comprehending latest reforms and the effect of such on macroeconomic variables. With our diverse investment product options, we are well positioned to capitalize on emerging government initiatives, leveraging them to enhance our investment strategies and decision-making processes.
This readily enlists us as an investment manager of choice for foreign investors eager to explore the opportunities within our market.
DataPro, a rating agency recently issued Anchoria a long-term rating of BBB+, what does this mean?
The rating is a testament to our solid investment record of accomplishment, robust capitalization, and strong corporate governance. Additionally, our significant fee-earning assets under management and ample liquidity further contributes to this rating. The rating underscores our ongoing success in fundraising, supported by the depth of investor relationships and the strength of our ecosystem.
Our commitment moving forward is to improve our rating by maintaining prudent liquidity buffers, ensuring strong asset quality, and cultivating a diversified earnings base.
How do you navigate the dynamics nature of financial markets?
We tap into a wide range of research-driven resources that grant us access to real-time market insights, data analytics, and in-depth research. This access enables us to make quick informed decisions and anticipate market trends, ultimately allowing us to provide our clients with the most relevant and up-to-date investment strategies. That way, we enhance the robustness of our investment decisions and reduce the reliance on any single model’s predictions.