Who are the parties to a mutual fund in Nigeria?
In Nigeria, mutual funds involve several parties who play different roles in the investment process. These parties include:
There are several parties involved in a mutual fund in Nigeria, including:
1. The Asset Management Company: This is the company that manages the mutual fund and is responsible for investing the assets of the fund in accordance with its investment objective and strategy. They are regulated by the Securities and Exchange Commission (SEC).
2. The Fund Manager(s): Sometimes interchanged and called portfolio manager(s). This is the individual or team responsible for making investment decisions on behalf of the mutual fund. The fund manager is typically employed by the asset management company.
3. The Custodian: This is the financial institution that holds the assets of the mutual fund in safekeeping and ensures that they are managed in accordance with the fund's investment objective and strategy.
4. The Trustee: These are organisations that are responsible for ensuring that the mutual fund is managed in the best interests of the investors and in accordance with the fund's investment objective and strategy.
5. The Investors: You and I and/or organisations that invest in the mutual fund and own shares in the fund. Investors may include retail investors, institutional investors, and investment advisers.
6. The Regulator: This is the government agency or other body that is responsible for regulating the mutual fund industry in Nigeria. This currently is the Securities and Exchange Commission (SEC).
Overall, these parties play key roles in the operation and management of a mutual fund in Nigeria and work together to ensure that the fund is managed in a transparent and responsible manner.