Under the terms of the contract, all the three investment banks will manage approximately 20% share of its $1bn fund that is intended to act as a shield against short-term macro- economic volatility.
NSIA managing director and chief executive officer Uche Orji was quoted by the leadership.ng as saying that UBS has been given the responsibility to manage the US Treasury bond portfolio.
Goldman Sachs and Credit Suisse were selected to administer the investment grade US corporate bond portfolio, as part of the sovereign wealth fund (SWF) strategy to assist Nigeria to better manage its economy.
NSIA special advisor Obinna Ihedioha said, "The fund’s assets will be invested conservatively, with capital preservation in nominal terms being of primary importance."
In May 2013, the NSIA said it would allocate 32.5% of the fund to infrastructure as well for savings, while 20% will be used for the stabilization fund, with the rest 15% as reserve.
According to the NSIA, the fund has been restricted from investing in investment grade sovereign and corporate fixed income assets, due to the short-term nature of the fund’s potential liabilities.
Orji said the three banks were selected following a comprehensive process of review and evaluation of world class candidates for this mandate, to assist in the management of the stabilization fund.
He further pointed out that it "will help us achieve the economic policy objectives set for NSIA and attain the highest standards of financial stewardship to which NSIA aspires."
