Group Managing Director, Afrinvest West Africa, Ike Chioke.
A financial advisory firm, Afrinvest West Africa has outlined investment strategies for 2023 and showed investors how to explore the opportunities and guard against threats in 2023.
Speaking during the investor parley held in Lagos, titled: ‘Soft or Hard Landing’, the firm said the event was to engage with clients on the 2023 outlook from the investment perspective.
Group Managing Director, Afrinvest West Africa, Ike Chioke, said that issues around inflationary trend, Covid-19, commodity prices, Russia and Ukraine war, among others are key considerations in investing in the new year and investors have to be guided to explore opportunities presented by these key events around the world.
He said the happenings around the world have made investment experts come together to look at our own crystal ball of what we see from an investment perspective next year.
Chioke added that Afrinvest consulting manages the investment research unit, and its fixed income, equities and digital space experiences put it in a good position to advise on the investments in 2023.
“The interaction is giving us the rationale to talk to our clients to tell them to be well positioned for the market come 2023.
“Investors need to be ready and decide when to enter the market and when to exit. It is one thing to enter into the market, and another thing to have good returns and make some profits for the year.”
According to Chioke, 2022 is pretty much gone; we are looking at 2023 and what it portends for investors. I think that from our perspective from the forex point of view, we still have a complex exchange rate policy, with multiple windows through which investors can access dollars,” he said.
On the sideline of the event, Chief Investment Officer, Afrinvest Asset Management Limited, Robert Omotunde, said that in terms of diversifying portfolio from a currency perspective, it is one of the critical strategies that investors need, especially in an environment where inflation is hyper.
Omotunde added that it makes sense to take advantage of dollar investment opportunities for investors with dollar inflows. There are a number of portfolios or opportunities that you can take in different asset classes.
“There is no over-emphasising the point that investors that are going to beat inflation and get superlative return, more so as 2023 beckons, such investors need to consider diversification by currency and American dollars is a major currency diversification that we preach.”
Managing Director, Afrinvest Consulting, Abiodun Keripe, said the end goal of the event was to inform market participants both at the buy and sale sides, with some of the trends in 2022 and provide insight and perception about 2023 in terms of how to allocate portfolio, strategise and plan for the investment climate in 2023.
He said the platform is to tell the average Nigerian to be very cautious because we are basically going into an election year where there will be some sort of elevation in uncertainties.
Keripe said that investment decision-making can be influenced by so many variables, hence the need for investors to be cautious about how to invest.
Also speaking, Chief Business Officer, Optimus by Afrinvest, Ayodeji Ebo, said that a high interest rate environment presents opportunities to investors.
He said that it may present a negative position to the borrower but looking at it from the investor’s perspective, it means higher returns, which will reduce the bleeding that most investors suffer as a result of higher inflation.
“So, we know where the interest rate was in the early part of this year, but we see that that gap is reducing. The negative real return on investment is reducing. So, we believe that from the fixed income angle, risk free investment such as the treasury bills presents opportunities,” he stated.
He said such instruments will present higher returns to investors, remain safe because the government will not default on its obligation.