MorganCapital launches asset management arm with four new products

MorganCapital Group is expanding beyond its low-cost stockbroking roots, launching a new asset management subsidiary aimed at capturing Nigeria’s growing demand for professionally managed investments.

In a notice to clients, the firm unveiled MorganCapital Investment Limited (MCIL), positioning it as a fund and portfolio manager offering tailored investment strategies to both individual and institutional investors.

The move marks a strategic shift for MorganCapital, long known in Nigeria’s capital markets for maintaining some of the lowest brokerage fees, into a higher-margin segment where firms earn recurring income from managing client assets.

MCIL will offer discretionary portfolio management, meaning it can actively manage client funds based on agreed mandates without requiring approval for each transaction. The company said its approach will be built around assessing investors’ risk tolerance and financial goals before constructing personalised portfolios.

The new unit is launching with four core products spanning fixed income, equities, mixed portfolios and ethical investing.

Its fixed income product targets steady returns and capital preservation, investing largely in government treasury bills, bonds and high-grade corporate debt. Minimum investment is set at N50,000, with returns tied to prevailing market rates.

For higher-risk investors, the equity growth offering focuses on listed and unlisted shares, benchmarked against the NGX All-Share Index, with a significantly higher entry point of N5 million.

The firm is also offering a balanced portfolio combining equities and fixed income, and an ethical investment product targeting investors seeking Sharia-compliant or ESG-aligned assets, including sukuk and green bonds.

Volatile Markets

Across its products, MorganCapital is pitching professional management, diversification and risk mitigation as key selling points, while charging a 1% management fee on assets under management, alongside custody and regulatory fees.

Assets will be held by UBA Nominee Services, an independent custodian, in a move designed to reassure investors over fund safety.

The expansion comes as Nigeria’s asset management industry grows, driven by rising inflation, volatile equity markets and increasing interest in fixed income and alternative investments. Firms are competing to attract both retail savers and high-net-worth individuals seeking better returns than traditional bank deposits.

By entering asset management, MorganCapital is effectively deepening its relationship with clients—moving from executing trades to managing entire portfolios—and positioning itself to capture a larger share of investor wallets.

For clients, the shift offers access to structured investment products without needing to actively trade the market, a model that is becoming increasingly popular among time-constrained and less-experienced investors.