GT Fund Managers (GTFM), the investment management business of GTCO Holdings, reported its total Assets Under Management (AUM) at N330.5 billion in 2023.
This represents a 374% increase from the N69.7 billion posted in 2022.
AUM is the market value of the investments managed by a firm on behalf of clients, according to Investopedia, an investment dictionary.
During the year, GTFM posted gross earnings of N3.1 billion, representing a 361% growth from the N664 million posted in 2022. The company also recorded a pre-tax profit of N2.13 billion, representing a 643% growth from the N286.2 million pre-tax profit posted in 2022.
Key Highlights FY 2023 vs FY 2022
- Net interest income: N2.3 billion, +873% YoY
- Net fee and commission income: N366.1 million, -15.9% YoY
- Other income: N581.2 million, +29847% YoY
- Operating income: N2.98 billion, +342% YoY
- Operating expenses: N857 million, +120% YoY
- Profit before tax: N2.13 billion, +643% YoY
Commentary
In the fiscal year under review, GTFM witnessed a notable shift in the composition of its AUM. Institutional investors accounted for 83% of the AUM, marking a substantial increase from the previous fiscal year’s figure of 63%. Conversely, the proportion of AUM contributed by retail investors decreased to 17%, down from 37% in FY 2022.
Investment funds managed by the GTFM include the Guaranty Trust Money Market Fund (GT MMF), Guaranty Trust Guaranteed Income Fund (GT GIF), Guaranty Trust Balanced Fund (GT BF), Guaranty Trust Dollar Fund (GT DF), Guaranty Trust Equity Income Fund (GT EIF), and Kedari Investment Fund.
According to GTCO’s financial report for FY 2023, GT MMF’s assets hit N20.36 billion in December 2023. This marks an 81% year-on-year growth from the N11.22 billion posted in December 2022.
For GT GIF, the assets under management hit N11.16 billion in December 2023, representing a 9.3% increase from the N10.2 billion posted in December 2022. For GT Dollar Fund, the AUM hit N25.47 billion in December 2023, representing a 63.5% year-on-year growth from the N15.58 billion posted in December 2022.
Between January and December 2023, GTFM’s AUM peaked at N379.9 billion in December 2023 from N330.67 billion as of November 2023.
What you should know
GT Fund Manager is the investment arm of GTCO Holdings, offering bespoke investment solutions to retail, high-net-worth individuals and institutional clients. GTCO’s investment in the company is N4.04 billion, above the N3 billion regulatory capital requirements for Holdcos in Nigeria.
In 2023, GTFM incurred a total fine of N11.78 million due to various infractions. These include N1 million fine for publishing advertisement material without the SEC’s approval, N9.4 million for the underpayment of regulatory fees pertaining to the Vantage Investment Note, and an additional N1.38 million fine for failure to adhere to custody regulations concerning the Vantage Investment Note.
