A portfolio manager holds a very important role when it comes to fund investing. A portfolio manager is a person or institution with the duty to invest a fund’s assets, implement the fund’s investment strategies, and manage day-to-day portfolio management.

Portfolio management is a process by which investments that meet the long-term financial objectives and risk tolerance of a client, a company, or an institution are being selected and overseen by an entity called a Fund/Port Folio Manager.

Functions

Fund/portfolio managers may perform the following functions amongst others:-

  1. Investment advisory services;
  2. Selection of securities for the fund/portfolio;
  3. Publication of financial market periodicals;
  4. Management of funds and portfolios on behalf of investors;
  5. Any other role ancillary to any of the above.

Registration requirements

Regardless of the influential role of a fund/portfolio manager, there are certain must have requirements to be met before this institution begins operation in Nigeria as provided by Rule 91 of SEC, 2013;

(1) An application for registration as fund/portfolio manager shall be filed on Form S.E.C. 3 and shall be accompanied by:-

(a) 2 sets of completed Form S.E.C. 2 to be filed by the sponsored individuals;

(b) a copy of Certificate of Incorporation certified by the Corporate Affair Commission where a copy not certified is filed, the applicant shall present the original for sighting by an authorized officer of the Commission;

(c) a copy of Memorandum and Articles of Association certified by the Corporate Affairs Commission. which shall among others include power to act as fund/portfolio manager;

(d) a copy of CAC Form containing particulars of the directors certified by the Corporate Affairs Commission.;

(e) copy of latest audited accounts or audited statement of affairs for companies in operation for less than one (1) year;

(f) Fidelity Bond representing 20% of paid-up capital;

(g) sworn undertaking to keep proper records and render returns;

(h) evidence of minimum paid-up capital of N20 million. (2) Rule 83 (3) and (4) shall, with all necessary modifications, apply in case of denial or suspension of registration of fund/portfolio manager.

CONCLUSION

In Nigeria, the SEC-registered Fund Managers are regulated and supervised by The Fund Managers Association of Nigeria “FMAN” to ensure the observance of global best practices relating to the operations of such Fund Managers.