The first collective management company approved in Senegal, the Compagnie Générale de Finance et de Gestion (CGF Gestion) has just set up an innovative retirement savings product in partnership with the Senegal Business Council (CDES). Kalidou Dialllo, CEO of CGF Gestion, explains its scope and, beyond, answers Financial Afrik’s questions about savings and retirement in the WAEMU zone.
CGF Gestion has just signed with the Senegal Business Council – CDES, the regulations for their Retirement Savings Plan. Can you come back to this collective savings scheme and present the conditions and benefits to our readers?
Since its creation, the objective of CGF Gestion is to support individuals and businesses in the implementation of sustainable savings, able to finance their projects. It is in line with this objective that we support companies and other public or private institutions in setting up complementary retirement savings plans.
As a reminder, historically, CGF Gestion was created to manage a company pension fund. This theme is therefore firmly anchored in the identity and culture of our company. This fund was the first of its kind launched in Senegal and also in the WAEMU zone. Retirement therefore remains a strong area of expertise at CGF Gestion and its social dimension challenges us on a daily basis.
Hence this collaboration with the Business Council of Senegal – CDES, a group of SMEs that wants to modernize employers, support business leaders and their employees in setting up an innovative savings plan. Today, we know that retiring in Senegal and in most countries of the WAEMU Zone often rhymes with impoverishment. We must therefore reverse this situation. And we are capable of it. Through its investment vehicles, CGF Gestion wishes to support the population in the implementation of modern savings products, profitable and efficient, based on transparency. The amounts collected are thus placed on products of the EUOMA financial market. In general, investors investing in our general public funds and employees of pension fund companies will receive significant capital at the age of retirement to realize a new life project and enjoy peacefully. a well deserved rest after many years of hard work, good and loyal service.
Are these retirement savings products available to individuals and businesses?
Savings products are actually open to individuals and businesses. The goal is the same, but the pattern can be different. For example, a company may be a promoter of a retirement investment fund. As such, there are some large companies in Senegal or the UEMOA zone that have set up with CGF Gestion their savings fund to give their employee a supplementary pension system. In addition, we have also developed a range of products, including mutual funds, intended for the general public. Some of our vehicles are invested primarily in the equity market, others in the bond market, and we also have diversified mutual funds that hold both stocks and bonds. We therefore orient investors according to their profiles and their risk appetite. It should be noted that since last year, a new range has been added to our products, in the dynamics of popularization of Islamic finance: they are halal mutual funds for which investments are made in accordance with Shariah rules (Islamic law).
In other places, there are different education savings, housing and other offers. What about in the WAEMU zone?
In the UEMOA zone, there are also savings offers for different projects. What is important today, in my opinion, is not so much the number of vehicles but rather the pedagogy to put in place with the public. People need to understand that saving is essential to guard against the vagaries of life and is also a strategic driver of financing our economies. We therefore have the role of explaining to individuals and businesses that the future is getting ready today, especially when it comes to retirement. In addition to products dedicated to retirement, we also have mutual funds that meet other specific needs in terms of the purpose of saving (acquisition of housing, education, etc.) for shorter periods compared to the end of the year. retirement.
All of our vehicles are designed to make the investments of customers profitable. We also want to contribute to the process of financial inclusion of populations.
You are the first approved collective management company in Senegal. Looking back, what were your best savings products in terms of performance?
In terms of performance, the best are equity funds. However, in mutual funds, the result obtained is the risk that has been taken. For example, the equity market is more volatile than the bond market and the minimum investment time required to expect a significant gain may be longer. For our part, we do not always think in terms of performance. Our mutual funds are structured to meet the expectations and needs of the public first. Thus, the risk appetites, investment horizons and futures objectives, at the origin of the investment, are different and are all elements that we analyze to set up a product. Thus, on each range or segment of the financial market, we work to optimize the return that we must serve to the holders of the units of our mutual funds.
We, as observers, say that your best fund is the Sonatel workers pension fund. Is the case?
Indeed, Sonatel must be commended for this visionary initiative which is the implementation of a complementary retirement scheme for the benefit of its employees. It should be noted that this was the first experience of its kind in the WAEMU zone. The fund launched in 2004 is now the benchmark for pension funds and remains at the origin of similar steps that were subsequently initiated by many companies in most UEMOA countries.
What do mutual funds (mutual funds and SICAVs) represent today in the animation of the BRVM?
UCITS represent around 10% in equity capitalization. It should be noted that this is a share that is progressing very quickly with a certain dynamism seen through the number of approvals provided by the Regional Council of Public Savings and Financial Market, our regulator, both at the level of UCITS management companies as new mutual funds.
What are the prospects of CGF Gestion?
Our goal is to provide every Senegalese and every WAEMU national with innovative and efficient savings vehicles. We also support them in the preparation of their retirement in their personal capacity or through the devices set up by companies. We also do not forget people from the diaspora and expatriates who are often used to the products of the financial market. To achieve this, we rely on constant innovation that allows us to develop thematic products to better meet the needs and requirements of savers who want to make their investments profitable.
Interviewed by Adama Wade
