Nigeria’s asset management industry is entering a new phase where investment expertise, innovation and trust may matter more than high interest rates, as declining yields threaten to reduce the returns that have attracted investors in recent years.
This is the view of Ebunoluwa Dayo-Adepoju, managing director of BlackCod Asset Management, who believes the next chapter of growth for Nigeria’s investment industry will be defined not by favourable market conditions but by the ability of fund managers to consistently deliver value in a lower-yield environment.
Speaking in an interview with BusinessDay, Dayo-Adepoju said one of the biggest challenges facing asset managers is yield compression as interest rates gradually moderate after years of elevated returns in fixed-income markets.
“The biggest challenge, frankly, is yield compression. As interest rates normalise or decline from their current highs, fund managers who have been riding the rate cycle will need to work much harder to deliver
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