)LQDO 5DWLQJ 5HSRUW€¦ · Figure 1 : Chapel Hill Denham Management Limited’s Organisational...

Chapel Hill Denham Management Ltd

Final Rating Report

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2017 Non-Bank Financial Institution Rating: Chapel Hill Denham Management Limited

Chapel Hill Denham Management Limited

Rating:

A(IM) RATING RATIONALE

Chapel Hill Denham Management Limited (“Chapel Hill Denham”, “CHDM” or

“the Manager”) is a wholly owned subsidiary of Chapel Hill Denham (“the

Group”), with over ₦55 billion in assets under management as at 30 September

2017. CHDM manages three Collective Schemes: Women’s Investment Fund,

Nigeria Global Investment Fund and the Paramount Equity Fund (formerly

known as Icon Unit Trust Fund), which was Nigeria’s first unit trust fund. In July

2017, the Manager launched – Chapel Hill Denham Nigeria Infrastructure Debt

Fund, which is aimed at providing private funding for infrastructural

developments in Nigeria.

Chapel Hill Denham Management Limited has three Investment Committees,

with distinct oversight functions in the investment decisions of the Manager.

The composition of the various Investment Committees provides adequate

depth of diverse experience, thereby ensuring that investment decisions are

dynamic and thorough.

Chapel Hill Denham’s Investment and Research teams are composed of

individuals with significant, relevant and diverse work experience gained both

internationally and in the Nigerian financial services industry. The Investment

and Research teams utilises bespoke MS excel models and Bloomberg Terminal

to conduct in-depth credit and equity analysis, which forms the basis for all

investment decisions.

The Risk Management Unit of the Group manages the investment and

operational risk of the Manager. Risk Management monitors the Manager’s

portfolio position and conducts checks to ensure limits are adhered to. The

oversight provided by CHDM’s Risk Management is adequate, however, to

enhance its effectiveness, Agusto & Co is of the view that the processes should

be automated.

Outlook: Positive

Issue Date: October 2017

Expiry Date: September 2018

Previous Rating: A(IM)

Industry:

Asset Management

Analysts:

Chuks Onyemachi

[email protected]

Adebiyi Olukoya

[email protected]

Rita Emoefe, CFA

[email protected]

Agusto & Co. Limited

UBA House (5th Floor)

57, Marina

Lagos

Nigeria

www.agusto.com

2

2017 Investment Manager Rating: Chapel Hill Denham Management Limited

The Group has a proprietary Enterprise Resource Planner which supports the

finance and operations functions of the Manager. The Manager’s business

continuity plan is satisfactory, with daily cloud backup of critical data.

CHDM’s internal control processes are strong, with clearly defined segregation

of duties. No single unit/individual can initiate and complete a transaction. All

transactions are approved by members of investment strategy committee, who

ensure all transactions are consistent with pre-agreed investment strategy.

Based on the aforementioned, Agusto & Co. affirm the “A(IM)” rating assigned

to Chapel Hill Denham Management Limited.

•Highly experienced and well composed Investment Committees

•Experienced Investment Mangement and Research teams

•In-depth research output

•Strong internal control processes, with clear reporting lines and adequate segregation of duties

Strengths

•Certain investment and risk mangement processes remain manual

Weakness

•Employing and retaining top talent in the investment management

team

Challenge

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MANAGER PROFILE

Chapel Hill Denham Management Limited (“Chapel Hill Denham”, “CHDM” or “the Manager”) is a wholly owned

subsidiary of Chapel Hill Denham a leading Nigerian investment bank with operations in both Nigeria and

Ghana. In addition to Chapel Hill Denham Management Limited, Chapel Hill Denham has two other wholly

owned subsidiaries: Chapel Hill Denham Securities Limited and Chapel Hill Denham Advisory Limited, as well

as an 80% stake in Chapel Hill Denham Ghana Limited.

Chapel Hill Denham Management Limited was incorporated in July 1994 as Denham Management Limited. In

February 2008, CHDM was renamed, following the business combination of Chapel Hill Advisory Partners

Limited and Denham Management Limited. The business combination, led to the emergence of a boutique

financial institution involved in investment banking, securities trading and investment management. The

Manager offers investment and wealth management services to institutional and retail clients.

CHDM acts as a direct and indirect adviser on discretionary and non-discretionary portfolios. As at 30

September 2017, the Manager’s total assets under management (AuM) was in excess of ₦55 billion, including

private wealth portfolios in excess of ₦4.1 billion. CHDM manages three Collective Schemes: Women’s

Investment Fund, Money Market Fund (formerly known as Nigeria Global Investment Fund) and the Paramount

Equity Fund (formerly known as Icon Unit Trust Fund), which was Nigeria’s first unit trust fund. In July 2017,

the Manager launched – Chapel Hill Denham Nigeria Infrastructure Debt Fund, which is aimed at providing

private funding in form of senior and subordinated debt to bankable infrastructural projects in Nigeria.

In addition to the various collective and private wealth schemes managed by CHDM, the Manager is one of the

founding investors in Trustfund Pensions Limited, is the fourth largest Pension Fund Administrator (PFA) in

Nigeria, with over ₦428 billion of pension funds under management as at September 2017. Chapel Hill

Denham’s head office is located at 45 Saka Tinubu Street, Victoria Island, Lagos.

BUSINESS STRUCTURE AND STAFFING

Governance

Chapel Hill Denham Management Limited is governed by a four member Board of Directors (“the Board”),

chaired by Mr Olawale Edun, a veteran investment banker, with over 24 years’ experience in merchant banking.

The Board also includes: the CEO of Chapel Hill Denham, Mr Mobolaji Balogun; the Manager’s Managing

Director, Mrs Ononuju Irukwu; and Mrs Kemi Awodein. Collectively the four member board possesses over 90

years’ experience in investment banking, with recognised financial institutions within and outside the country.

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Table 1: Board of Directors Name Position

Mr Olawale Edun Chairman

Mr Mobolaji Balogun Chief Executive officer (CEO) – Chapel Hill Denham

Mrs Ononuju Irukwu Managing Director – CHDM

Mrs Kemi Awodein Managing Director – Chapel Hill Advisory

Source: Chapel Hill Denham management Limited

The Board’s duties include formulation of policies and overseeing the management, conduct, formulation and

implementation of risk management framework, in addition to overseeing the effectiveness and adequacy of

internal control systems.

The broad duties of the Board are delegated to Sub-committees, which include:

Audit & Risk Committee

Investment Committee

Fund Investment Committee

Investment Strategy Committee

Organisational Structure

The Board of Directors at CHDM is the highest decision making body, whereas the Managing Director – Mrs.

Ononuju Irukwu – is delegated the responsibilities of making operational decisions on behalf of the Board.

Chapel Hill Denham Management Limited has a business structure that feeds off the larger structure of the

Group. The Manager maintains an Investment Management team, which functions separately from the Group,

while other front, middle and back office functions such as; research, sales & management, risk management

& compliance, legal & company secretary, finance & operations and information technology are shared

services with the other subsidiaries of the Group.

The Group’s Support Service Unit apportions the cost of the shared services across group subsidiaries. The

various units of the Group’s Support Service, assigns a dedicated team to each subsidiary, thereby ensuring

that operational turnaround time is minimized. This offers the Manager the opportunity to leverage the

diversified knowledge of personnel and the IT infrastructure of the Group, at a cost significantly lower than

what it would take the Manager to provide these services as a standalone.

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Figure 1 : Chapel Hill Denham Management Limited’s Organisational Chart

Source: Chapel Hill Denham management Limited

CHDMs Investment Management team comprises four portfolio managers who report directly to the Managing

Director, Mrs. Ononuju Irukwu. Profiles of members of the Investment Management team can be found in

appendix 1.

ANALYSTS’ COMMENTS – INVESTMENT MANAGEMENT

RESEARCH

Chapel Hill Denham has a dedicated Research Unit which provides research to subsidiaries within the Group.

The Research Unit comprises five analysts, led by a head of department, who has over 10 years’ experience in

investment research and asset management gained with Chapel Hill Denham and the Stanbic IBTC Group. The

Research Unit provides research coverage on 26 listed companies that account for over 85% of total market

capitalisation in Nigeria’s equity market. The research output also include monthly and quarterly reports on

fiscal and monetary issues in the country, in addition to daily reviews of Nigeria’s equity market.

Whereas the output of the research team is largely sell-side focused, the economic, industry and market

research produced is directly relevant to buy-side research, which is carried out by the Investment Management

team. CHDM’s Investment Management team, in addition to the Group’s research reports, utilises information

from: Bloomberg Terminal, Central Bank of Nigeria, National Bureau of Statistics and other external sources to

develop research inputs suitable for the Manager’s buy-side analysis.

Research reports produced by the Manager’s Investment Management team, form the basis for investment

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decisions. Through fundamental analysis, the Investment Management team estimates up-side and down-side

potentials of equity investments, while fixed income investments are analysed based on the Manager’s internal

obligor credit ratings. The output of these processes are articulated into investment proposals, which are

disseminated to members of the investment strategy committee for approval. The investment strategy

committee meets weekly to review and approve investment proposals.

The Research and Investment Management teams utilise bespoke MS excel models and Bloomberg Terminals

to conduct analysis, while MS Word and MS PowerPoint are used for reporting. Research output is disseminated

to the Investment Management team via email or shared drives on the Manager’s local network.

Figure 2: CHDM's Investment Process for private wealth and collective schemes

Source: Chapel Hill Denham Management Limited

In our opinion, Chapel Hill Denham’s Investment Management and Research teams are experienced, and the

research reports are adequate for providing useful insights on the risks and rewards inherent in the Nigerian

Equity and Fixed Income market.

DECISION MAKING

Chapel Hill Denham Management Limited has three investment committees, with distinct oversight functions

in the decision making process of the Manager. These committees include:

1. The Fund Investment Committee

CHDM’s Fund Investment Committee (FIC) is responsible for providing broad investment guidelines

for the three funds managed by the Manager. The committee comprises six members, with Mr Wole

Oshin as Chairman. Other members of the FIC are presented in Table 2.

Research & Analysis

Investment Recommendation

Asset Class Definition

Investment Strategy

Trade Implementation

Post Investment Monitoring

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Table 2: Members of Fund Investment Committee Name Position

Mr Wole Oshin Chairman – Independent member

Mrs. Ononuju Irukwu Managing Director – CHDM

Ms. Oby Ugboma Head of Risk – Chapel Hill Denham

Mr. Tajudeen Ibrahim Head of Research – Chapel Hill Denham

Mrs. Nneka Ogboi Fixed Income Analyst - CHDM

Harrison Nnebe Equity Analyst - CHDM

Representative of STL Trustees Limited / Royal Exchange Plc. Custodian


2. The Investment Strategy Committee

Chapel Hill Denham Management Limited’s Investment Strategy Committee (ISC), meets weekly to review the

investment performance of the Manager’s private wealth and collective investment schemes and consider

investment proposals. The Manager’s ISC develops strategies to be adopted by the investment team, based on

the market outlook and approves all transactions undertaken by the investment management team. The

committee comprises seven members, led by CHDM’s Managing Director. Other members of the ISC are

presented in Table 3.

Table 3: Members of Investment Strategy Committee Mrs. Ononuju Irukwu Managing Director – CHDM

Ms. Oby Ugboma Head of Risk – Chapel Hill Denham

Mr. Tajudeen Ibrahim Head of Research – Chapel Hill Denham

Mrs. Nneka Ogboi Fixed Income Analyst - CHDM

Mr. Akeem Sadare Managing Director of Chapel Hill Denham Securities Limited

Mr. Abidemi Oni Head of Finance & Operations – Chapel Hill Denham

Mrs. Adaora Obikili Alternative Investments Analyst – CHDM

Harrison Nnebe Equity Analyst - CHDM

Temitayo Omosebi Private Wealth Relationship Officer


Profile of Fund Investment Committee’s Chairman

Mr Wole Oshin, is the founder and Group Managing Director of the Custodian Group. He has over 30 years’

experience in insurance and investment management. He has at various times been a member of the

Presidential Committee on Pension Reforms, Chairman of the Nigerian Insurers Association, Council

Member of the West African Insurance Companies Association (Ghana), and External Lecturer – West

African Insurance Institute, Banjul, The Gambia.

Profile of Investment Strategy Committee’s Chairman

Mrs Ononuju Irukwu, the Managing Director of Chapel Hill Denham Management, has over 25 years’

experience in private banking and asset management. She began her career in 1992 with Intercontinental

Bank and has since worked with Standard Chartered Bank Nigeria and FBN Capital. Mrs Irukwu joined

CHDM as Managing Director in 2013.

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The Investment Committee

Chapel Hill Denham Management Limited’s Investment Committee (IC) has the special function of overseeing

the Manager’s newly launched – Nigeria Infrastructure Debt Fund. The committee comprises five members,

led by Mr. Philip Southwell. Other members of the committee include:

Denis Clark – Independent member

Bolaji Balogun – Chapel Hill Denham

Anshul Rai – CEO NIDF

Ononuju Irukwu – MD Chapel Hill Denham Management Limited

Investment Decision Making Process

The investment decision making process for private wealth and collective schemes follow a similar approach

that starts with a pre-investment assessment. The pre-investment process involves; understanding the

investment objective and strategy formulation. The Investment Policy Statement (IPS), which outlines the

Profile of Investment Committee’s Chairman

Mr. Philip Southwell, has over 21 years of international experience gained at major financial institutions

such as Deutsche Bank, EFG-Hermes and Bank of America Merrill Lynch. He has been involved in

developing the investment frameworks for channeling institutional capital into long-term infrastructure

projects in emerging markets.

Profile of Investment Committee’s Independent member

Denis Clark, is an infrastructure finance expert with over three decades’ experience in reviewing, analysing,

structuring and negotiating equity and debt investments in infrastructure. Mr. Clerk had previously worked

with the International Finance Corporation (IFC), where he held the position of Chief Investment Officer

for over 15 years. While at IFC, Mr. Clerk was among the founding members of IFC’s specialist Power Group,

before proceeding to the World Bank where he was manager of the World Bank’s central energy group. In

his time at IFC and World Bank, he was involved in structuring debt finance for sectors including

conventional & renewable power generation; utilities such as district heating, gas distribution, water and

waste management; and transportation. His experience spreads across Africa, Eastern Europe, Latin

America, the Middle East and Asia.

Profile of NIDF’s Chief Executive Officer

Anshul Rai, is an infrastructure finance expert. Over the past 18 years, Anshul has been involved in principal

investments, project finance and financial advisory on major infrastructural projects in emerging markets.

In 2013, Anshul co-founded Axius Capital, where he was responsible for repackaging infrastructure loans

to sell to the institutional market, which includes a $700m infrastructure loan in Angola. Mr. Rai was

previously the Managing Director of MENA Infrastructure Fund and was also involved in managing

infrastructure debt and equity portfolios at IFCI Bank, India and Bank Muscat.

9


specific risk and reward requirement of each portfolio, serves as the guiding document for the pre-investment

process.

Based on the outcome of pre-investment process, and research conducted by the Investment Management

team, investment proposals are developed, which are compiled in MS Word or MS PowerPoint reports and

disseminated to investment strategy committee members via email or shared local network drives for approval.

The investment process for the Nigerian Infrastructure Debt Fund (NIDF) adopts a slightly different approach.

The process begins with an initial review of potential investments, to ascertain if they fit within the NIDF’s

investment criteria. The outcome of the review is presented to the investment committee by the investment

team and an initial review approval is given if the IC is convinced that the project is attractive and actionable,

otherwise, the proposal is rejected.

This is followed by a review of financial forecast and due diligence analysis on the investment, carried out by

the Investment Management Unit, whereas, specialised functions such as legal and tax due diligence are

carried out by external parties, with expertise in the respective area. The due diligence covers;

Industry and Business

Management

Financial Report

Physical Plant & Equipment

Legal

Tax

Operations

Health, Safety, Environmental and

Governance

Insurance

The Investment Committee reviews the forecasts and due diligence report, the proposal is rejected if the IC is

of the view that the project could lead to loss of principal and/or the returns are uncompetitive, otherwise, a

conditional approval is given. The conditional approval, authorises the investment team to negotiate terms

and pricing with the prospective obligor, before a final approval – requiring the concurrence of all committee

members – is given to commit funds.

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Figure 3: Decision Making Process for NIDF


In our view, the composition of the various Investment Committees, provides adequate depth of diversified

experience, which adds tremendous value to the decision making process. Whereas the Manager could benefit

from leveraging on technology to improve the decision making process as the AUM grows, we note that the

current system is adequate for the current size of CHDM.

TRADE EXECUTION

Trade execution at Chapel Hill Denham Management Limited, involves the Manager’s investment management

team, the operations team and external parties – custodians, brokers and dealers. After investment decisions

have been made, the investment team notifies the operations team and fund custodians of trade mandates to

be executed - whether equities or fixed income trades.

The Finance and Operations Unit head has over 16 years’ experience in finance and operations. On receipt of

the trade mandates, the Manager’s operations team validate that mandates have been duly signed by the

authorized signatories, before passing the instructions to the appointed broker or dealer.

CHDM’s equity transactions execution is handled by two brokers: Chapel Hill Denham Securities Limited and

Coronation Securities Limited. Chapel Hill Denham Securities has operated for more than 16 years, initially as

Denham Management Limited until acquired by Chapel Hill Denham in 2008. Coronation Securities (formerly

Marina Securities) has also operated for more than 16 years. In deciding which broker to allocate trades to, the

Manager considers the broker with the best execution based on past transactions.

•Project fits within the fund's investment criteria

•High level commercial review of the investment opportunity

•Identification of key risk considerations

Stage One: Initial Investment Review

•Review of project information including financial forecast

•Develop approaches to mitigate identified risks

•Negotiation of term sheet with borrower, including pricing

•Investment Committee review and approval of term sheet and due diligence budget

Stage Two: Conditional Investment Committee Approval

•Detailed due diligence

•Finalisation of detailed investment terms and drafting of transaction documents

•Final investment committee review and decision

•Execution of transaction documentation by trustee

Stage Three: Final Investment Committee Approval

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Chapel Hill Denham Management Limited also participates in the primary and secondary fixed income market

through, Primary Dealer and Market Maker (“PDMM”), bookrunners and other counterparties.

Trade mandates are communicated to external brokers, dealers and custodians via email, however, trades

allocated to Chapel Hill Denham Securities are communicated via the Group’s bespoke ERP software (GALENO).

Successful trades are communicated to the Manager’s investment and operations team through email.

Thereafter, the operations team updates the appropriate portfolio.

In our opinion, the trade execution process is adequate, with robust controls to detect unauthorized or

erroneous trades. The appointed brokers and dealers have sufficient experience in the Nigerian capital market,

which gives reasonable assurance that trades would be executed efficiently.

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ANALYSTS’ COMMENTS – RISK MANAGEMENT

INVESTMENT RISK MANAGEMENT

Risk management function is one of the shared services at Chapel Hill Denham. The various investment

management committees work in collaboration with the Risk Management Unit of the Group, to provide

investment risk management oversight for all the funds.

The Risk Management Unit of the Group comprises two experienced professionals, supervised by a head of

department, who has over 18 years’ international and local experience in consulting, risk management and

compliance, gained at JP Morgan, Barclays Capital, RBS Capital and HSBC Bank.

CHDM’s proprietary Enterprise Resource Planning (ERP) application, Galeno, gives the Risk Management Team

functionality to generate reports and view client statements, portfolio valuations and cash balances. Risk

management reports are disseminated via email or shared drives on the local network weekly.

CHDM manages credit risk by investing only in assets of high credit quality and adhering to credit exposure

limits. Obligors are selected based on the Manager’s internal credit assessment and ratings issued by external

credit rating agencies. Market and liquidity risk are managed through regular monitoring of exposures, and

investing in large-cap stocks with high market liquidity. Concentration risk in the equity portfolio is managed

by maintaining a maximum exposure limit of not more than 5% of AUM invested in a single stock. Where

market movement result in some stocks being over weighted, the Manager rebalances the portfolio within 30

days, while ensuring that gains are not eroded in the rebalancing process. While we note that rebalancing an

overweighed position in a stock should be strategic – with minimal loss to the fund, allowing a position to

remain overweighed for an extended period of 30 days could expose the fund to increased price volatility.

Risk management conducts daily trade reviews and random spot checks to ensure trades executed are in line

with mandates and has passed through the appropriate approval process. Risk Management escalates any

breaches discovered to the Managing Director, while monthly risk report, noting any exceptions and risk events,

are presented to the Manager’s Investment Committee and Board of Directors.

In our opinion, the Group’s risk management function is quite robust. Although the size of the Risk Management

Unit would need to be expanded as the operations and size of the Managers AUM grow, the oversight provided

by the various Investment Committees and the Group Risk Management Unit is adequate for the size of CHDM’s

investment function.

OPERATIONAL RISK MANAGEMENT

Chapel Hill Denham Management Limited manages operational risk through its established internal control

processes and systems. The Finance and Operations Unit, is responsible for handling the operational side of

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the Manager’s investment activities. The Finance & Operations Unit is split into 3 Sub-units: Financial Control,

Investment Operations and Other Finance Operations with each unit staffed by a team of two officers.

The finance and operations team execute all transactions initiated by the investment team and serve as a final

layer of check, by ensuring all transactions are dully approved prior to execution.

The Manager’s proprietary ERP application (Galeno) is used for; account opening, booking investment

transactions, end-of-day reporting and generating client statements. It is also integrated with the Central

Securities and Clearing System (“CSCS”).

In addition to CHDM’s ERP application, the finance and operations unit uses SAP to record business transactions

and for financial reporting. Currently, fund accounting and valuation is being transitioned to SAP, with NIDF as

the pilot fund, while the other mutual funds are on track to be migrated by year end. NAV is currently computed

for the NIDF using SAP, while that of other collective schemes are done manually on MS excel.

In our view, the manual valuation of collective schemes on MS excel, is more prone to errors and would be

inadequate to support the operations of the Manager, as the value and classes of assets under management

grow. Nonetheless, we note that the Manager is in the process of acquiring an external software – Milesoft –

which is expected to automate the valuation of collective schemes, in addition to other functions such as –

risk management control and portfolio analytics.

Access rights to the Managers’ ERP system is granted based on job function and approval level, which in our

view, buttresses sound internal control and interdepartmental checks – as no single unit/individual can initiate

and complete a transaction.

Chapel Hill Denham has two locations in Nigeria; one in Lagos and the other in Abuja. The Galeno ERP is run

on two servers locally, offering redundancy in the event one of the servers fails. The Manager makes daily

clones of server hard drives which is uploaded into cloud storage and monthly clones which are archived off

site.

The risk management team has oversight on CHDM’s operations and conducts quarterly asset verification

exercise, with any exceptions reported to the Managing Director and the Board of Directors. Risk management

also conducts regular training & risk control self-assessment (RCSA) and maintains an investment and

operational risk register, which forms the basis for risk identification, control and monitoring.

In our opinion, the Managers’ operational risk is well managed, with adequate controls that ensure transaction

initiation, execution and booking are segregated and the Finance and Operations Unit is adequately staffed

with well qualified personnel.

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Appendix 1: Profile of Investment Team and Head of Research

Name Portfolio Profile

Tajudeen Ibrahim Head

Research

Tajudeen Ibrahim is the Head of Research at Chapel Hill Denham. He has

over 10 years’ experience in asset management and investment research.

Prior to joining Chapel Hill Denham, he was an equity research analyst

within Standard Bank Group. He also managed the pension and gratuity

funds of multinational companies within the Standard Bank Group.

Tajudeen holds an MBA from University of Lagos, an M.Sc. and a B.Sc. in

Mathematics from the University of Ibadan.

Adaora Obikili Alternative

Investments

Adaora is an Assistant Vice President at Chapel Hill Denham. She joined the

firm in 2017 from Dalberg Global Development Advisors Nigeria, where she

worked as a Senior Consultant, executing several strategic assignments on

socio-economic development for the present Office of the Vice President of

Nigeria and the United Nations, Ford Foundation, World Bank amongst

others. Prior to this, she was a Senior Banking Executive at Fidelity Bank Plc,

where she helped grow the bank’s award winning SME business, providing

tailored financial and business advisory services to over 100 SMEs in key

growth sectors. Before relocating to Nigeria, Adaora held several key

positions in Credit Suisse, London. She joined the firm as an Equity Corporate

Finance Analyst and then rose to become Assistant Vice President in the UK

Investment Banking team.

Adaora holds a BSc. (Hons) in Economics from the University of Warwick, UK

and an MBA Finance degree from Nottingham University Business School,

UK; where she was awarded an International Scholarship for Outstanding

Academic Achievement. She is a Qualified Associate Member of the

Chartered Institute for Securities and Investment, UK.

Nneka Ogboi Fixed

Income

Nneka is a Portfolio Manager at Chapel Hill Denham. She joined the firm in

2017 from Mawer Investment Management, Canada where she worked as a

Portfolio Manager Associate for two years. Prior to this, Nneka worked with

the Royal Bank of Canada Financial Group for four years, first as a Financial

Analyst with the Global Asset Management unit in Toronto, and then as an

Investment Advisor Associate at RBC Dominion Securities, Calgary. She also

previously worked with Sun Life Financial in Windsor, Ontario as an

Investment Advisor Assistant.

Nneka holds a Bachelor of Commerce (Hons) in Business Administration Co-

op (Major in Finance) from the University of Windsor, Ontario, Canada; where

she graduated with distinction. She is a member of the Canadian Securities

Institute and also a Licensed Investment Representative with the

Investment Regulatory Organization of Canada.

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Harrison Nnebe Equities Nnebe Harrison is the Equities Portfolio Manager of Chapel Hill Denham

Management Limited. He has over nine years’ experience in the financial

services industry. He was a Relationship Manager at Purple Capital Partners

Limited, a specialist investment firm that specialises in Real Estate, Private

Equity and Principal Investment. Prior to Purple Capital Partners Limited,

Harrison was a Relationship Manager at BGL Securities and BGL Asset

Management. He also had a stint at GTI Securities Limited as a Relationship

Manager. He is a graduate of Physics from the University of Ibadan and an

Associate member of the Chartered Institute of Stockbrokers (CIS).

Temitayo

Omosebi

Private

Wealth

Temitayo manages the Private Wealth Portfolios at Chapel Hill Denham

Management Limited. She has over three years’ experience in the financial

Services Industry. Prior to joining Chapel Hill Denham, she was a Client

Advisor with United Capital Plc, where she managed the portfolios of HNIs

and Institutional clients, for over two years.

Temitayo holds a BSc (Joint Honors) in Accounting and Economics from the

University of Southampton, UK.


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INVESTMENT MANAGER RATING: METHODOLOGY &

DEFINITIONS

An Agusto & Co INVESTMENT MANAGER rating is based largely on qualitative factors. The factors considered

before arriving at a rating for each institution falls under the following criteria.

Investment management

o The decision making process and buy-sell discipline

o The portfolio management, reporting and settlement systems

o The quality of research, and analysis of market information

Risk Management and controls

o Investment risk management

o Operational risk management, corporate governance and compliance

Rating Methodology

To arrive at a rating, the broad categories of investment management, and risk management are scored in

terms of:

the calibre of personnel;

the functionality of the systems; and

the robustness of the process and quality of output.

The category scores are weighted according to our view of their importance in capturing an investment

manager’s ability to optimise the risk-return profile of investor funds. The final rating is derived from the

weighted score of an Investment Manager.

Categories and Sub-Categories Scored

Investment Manager Rating

Investment Management

ResearchDecision Making

Trade Execution

Risk Management

Investment Risk

Managment

Operational Risk

Management

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RATING DEFINITIONS AAA (IM)

Investment management company is considered to have EXCELLENT investment and

risk management capabilities

AA (IM)

Investment management company is considered to have VERY GOOD investment and


A (IM)

Investment management company is considered to have GOOD investment and risk

management capabilities

BBB (IM)

Investment management company is considered to have ADEQUATE investment and


B (IM)

Investment management company is considered to have INADEQUATE to POOR

investment and risk management capabilities.

Rating Category Modifiers

A "+" (plus) or "-" (minus) sign may be assigned to ratings from ‘Aa’ to ‘C’ to reflect comparative position within the rating category. Therefore, a

rating with + (plus) attached to it is a notch higher than a rating without the + (plus) sign and two notches higher than a rating with the - (minus)

sign.

www.agusto.com © Agusto&Co. UBA House (5th Floor) 57 Marina Lagos Nigeria. P.O Box 56136 Ikoyi +234 (1) 2707222-4 +234 (1) 2713808 Fax: 234 (1) 2643576 Email: [email protected]

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