ernie4life:


nice to have someone from ARM here, we would like to know more about ARM mutual funds,

Give us a brief about all ARM mutual funds with specific details to there classifications, tax implications, interest rate, tenure, minimum investment amount any extra information you think would be helpful.

Thank you for the privilege... This has been a wonderful thread and I must commend you for the great work.

At ARM our mutual funds are classified into four.

1. The ARM Money Market Fund
2. The ARM Discovery Fund
3. The ARM Aggressive Growth Fund
4. The ARM Ethical Fund.

The ARM Money Market Fund: The fund invests mainly in money market instruments, such as government treasury bills, commercial papers, bankers acceptance and certificate of deposit.

Benefits
- Generate steady income
- Its tax free
- Capital preservation
- Serves as a collateral.
- Pays dividend every quarter
- Low risk, because 100% of the fund is invested in the money market
- The fund is open ended, its not tied to a tenure I.e you can enter and exit anytime. However, its expected that you stay up to a month. A breach of this will result in a penalty of 20% of what your money has been able to yield within the period. Actually your money yields something each day it stays with us.


Note: It goes with a floating rate and not a fixed rate. And since the inception of the fund it hasn't done below 10%.
Redemption of investment takes 3 to 5 working days.


@ernie4life you raised a concern about how the fall in the price of government securities will impact on the money market mutual funds. Well, I can tell you that at ARM our top priority is to look for maximum opportunities that exists in the market for the optimum benefit of our clients. Though, T.bills has been falling but, the yield on the ARM money market fund hasn't done below 13.5% since the beginning of the month of November.

I will be updating the house from time to time. Am here incase of any questions.

Will take the Discovery Fund next.

Johnrake69:


Thank you for the privilege... This has been a wonderful thread and I must commend you for the great work.

At ARM our mutual funds are classified into four.

1. The ARM Money Market Fund
2. The ARM Discovery Fund
3. The ARM Aggressive Growth Fund
4. The ARM Ethical Fund.

The ARM Money Market Fund: The fund invests mainly in money market instruments, such as government treasury bills, commercial papers, bankers acceptance and certificate of deposit.

Benefits
- Generate steady income
- Its tax free
- Capital preservation
- Serves as a collateral.
- Pays dividend every quarter
- Low risk, because 100% of the fund is invested in the money market
- The fund is open ended, its not tied to a tenure I.e you can enter and exit anytime. However, its expected that you stay up to a month. A breach of this will result in a penalty of 20% of what your money has been able to yield within the period. Actually your money yields something each day it stays with us.


Note: It goes with a floating rate and not a fixed rate. And since the inception of the fund it hasn't done below 10%.
Redemption of investment takes 3 to 5 working days.


@ernie4life you raised a concern about how the fall in the price of government securities will impact on the money market mutual funds. Well, I can tell you that at ARM our top priority is to look for maximum opportunities that exists in the market for the optimum benefit of our clients. Though, T.bills has been falling but, the yield on the ARM money market fund hasn't done below 13.5% since the beginning of the month of November.

I will be updating the house from time to time. Am here incase of any questions.

Will take the Discovery Fund next.

You mentioned the benefits. What are the downsides to the ARM MMF? If any.

taiwoliu:
how do u come about ds economic figures and stats? Ddnt pay much attention in economics class.

hehe

I read most of them up and they help me form my opinions. The figures change from time to time, it is just good to have a general idea. No biggie really

Johnrake69:


Bros respect... I have actually been following your posts for over a year now and I must say you know your onions.

My brother, this is my school also, plus a few personal experiences. Ernie is the guy with the inside information and I am lucky to be on the outside so we usually get best of both worlds by chatting about stuff. Of course other people also contribute and we all learn from each other. We are lucky this thread was created.

carpenter:


hehe

I read most of them up and they help me form my opinions. The figures change from time to time, it is just good to have a general idea. No biggie really

issokay... can u gv recommendations on how to gather d knowledge?

masonkz:


You mentioned the benefits. What are the downsides to the ARM MMF? If any.

I have tried to give a full disclosure about the fund. If you go through the details again you will notice that I made a note. But, if you have questions on your mind you can state it here and I will attend to them.

taiwoliu:
issokay... can u gv recommendations on how to gather d knowledge?

1. You can register at www.fsdhgroup.com for daily stock updates and reports
2. You can also view reports at http://cowryasset.com/asset/content.php?page=report
3. Various news sites

hello everyone,
i already started with fbn fixed income fund before i read this thread. does anyone know if its possible to switch my funds from the fbn fixed income fund to fbn money market fund?

oluwarantimi:
hello everyone,
i already started with fbn fixed income fund before i read this thread. does anyone know if its possible to switch my funds from the fbn fixed income fund to fbn money market fund?

Yes you could switch but wondering why you want to?

From my records, Fixed Income is doing better than MMF and better for medium to long term investments.

If you would still like to go ahead (since I have no idea of your personal situation), I would advice you wait the minimum holding period of 3 month (to avoid the penalty on withdrawal, minimum of 3 months holding period) then you can fill a redemption form and indicate you want to invest the money in MMF.

I used to have 60% of my money in MMF and 20% in Fixed and remaining 20% in Heritage (no reason for the ratio i just felt more comfortable with MMF and wanted to try my hands on the other two). At the moment, I only have 40% in MMF and the remainder shared between Fixed and Heritage.

The no guaranteed income thing and the fact that my principal is not guaranteed is the reason why i am contemplating the move, it wont make sense to take home less than i have invested. i might just hold on for a year tho and see what happens tho.
Thank you

carpenter:


Yes you could switch but wondering why you want to?

From my records, Fixed Income is doing better than MMF and better for medium to long term investments.

If you would still like to go ahead (since I have no idea of your personal situation), I would advice you wait the minimum holding period of 3 month (to avoid the penalty on withdrawal, minimum of 3 months holding period) then you can fill a redemption form and indicate you want to invest the money in MMF.

I used to have 60% of my money in MMF and 20% in Fixed and remaining 20% in Heritage (no reason for the ratio i just felt more comfortable with MMF and wanted to try my hands on the other two). At the moment, I only have 40% in MMF and the remainder shared between Fixed and Heritage.

Johnrake69:


Thank you for the privilege... This has been a wonderful thread and I must commend you for the great work.

At ARM our mutual funds are classified into four.

1. The ARM Money Market Fund
2. The ARM Discovery Fund
3. The ARM Aggressive Growth Fund
4. The ARM Ethical Fund.

The ARM Money Market Fund: The fund invests mainly in money market instruments, such as government treasury bills, commercial papers, bankers acceptance and certificate of deposit.

Benefits
- Generate steady income
- Its tax free
- Capital preservation
- Serves as a collateral.
- Pays dividend every quarter
- Low risk, because 100% of the fund is invested in the money market
- The fund is open ended, its not tied to a tenure I.e you can enter and exit anytime. However, its expected that you stay up to a month. A breach of this will result in a penalty of 20% of what your money has been able to yield within the period. Actually your money yields something each day it stays with us.


Note: It goes with a floating rate and not a fixed rate. And since the inception of the fund it hasn't done below 10%.
Redemption of investment takes 3 to 5 working days.


@ernie4life you raised a concern about how the fall in the price of government securities will impact on the money market mutual funds. Well, I can tell you that at ARM our top priority is to look for maximum opportunities that exists in the market for the optimum benefit of our clients. Though, T.bills has been falling but, the yield on the ARM money market fund hasn't done below 13.5% since the beginning of the month of November.

I will be updating the house from time to time. Am here incase of any questions.

Will take the Discovery Fund next.

nice

ernie4life:


nice

Ernie this oga don run o!

We dey update now....

carpenter:


Ernie this oga don run o!

We dey update now....

haha haha

there is going to be an MPC meeting and from the look of things MPR will be adjusted, this will have an impact on the yields in some money market instruments.

Right now the priority on every investors mind should be to stay afloat, don't be to eager to make excess profit/ interest, aim for anything above the inflation rate while we wait for an economic turn around, security of capital should also be considered.

Note: my opinion

ernie4life:
there is going to be an MPC meeting and from the look of things MPR will be adjusted, this will have an impact on the yields in some money market instruments.

Right now the priority on every investors mind should be to stay afloat, don't be to eager to make excess profit/ interest, aim for anything above the inflation rate while we wait for an economic turn around, security of capital should also be considered.

Note: my opinion

Gbabeski!

On a side note, for those who have money in bank accounts. The MPR also determines the interest rate your banks offer you. Interest rates should be a minimum of 30% of the MPR and mosts banks will offer the minimum.

carpenter:


Gbabeski!

On a side note, for those who have money in bank accounts. The MPR also determines the interest rate your banks offer you. Interest rates should be a minimum of 30% of the MPR and mosts banks will offer the minimum.

Please my oga carpenter,

Explain in clear terms the meaning of MPR and how it affects money market and bank interest rates.

Thanks

ukay2:



Please my oga carpenter,

Explain in clear terms the meaning of MPR and how it affects money market and bank interest rates.

Thanks

Am sure somone else will bring forth a better explanation later.

In layman terms, the MPR (Monetary Policy Rate) is a rate set by the CBN to control money in circulation. To control inflation and deflation.

I give an example, if the MPR is raised, then people want to invest cause they make more money. So money available to be spent is reduced, lending rates also go up. If MPR is reduced, then you rethink your investments and might decide to spend money , also lending rates are reduced...so people have access to more "cheap" money.

Add to what carpenter has said, MPR is the highest rate banks can give you on your deposit, currently it's 13%.

when the rates are reduced the interest become less attractive to investors.

so when CAN feels there is too much money in circulation they simply increase the MPR leaning to more people giving banks there money in form of fixed deposit etc.

ernie4life:



OK am going to show you the yield on some funds then you can choose, all of them are reliable.

Let me start with FBN


Prices and performance of funds as at 13 August 2015:

The FBN Money Market Fund
 Bid Price:
 N100
 Yield*:
 13.35%

The FBN Fixed Income Fund
 Bid Price:
N1,087.20
 Offer Price:
 N1,087.94
 Yield^:
 13.60%

The FBN Heritage Fund
 Bid Price:
 N107.10
 Offer Price:
 N107.63
Data updated daily. All yields are stated net of fees and expenses

¹ The fund manager is required to maintain a stable price (NAV) of ₦100.00
* Annualised yield
^ Annualised equivalent yield

Check this link for more info
http://www.fbncapital.com/asset-management/fund-prices

please I don't understand this. how much will my earning be if I invest 500k for 3 months. thanks

carpenter:


Nah..you may indeed be right also. I calculate based on how much i invested and how much i have gained theoretically. The fund manager will also calculate this differently...it depends on what time horizon we are looking at and hw much we paid for it. For clarity, someone that bought Transcorp at 11 naira is unhappy it is barely above 2naira, someone that bought at 50k in is overly happy with his investments.


The funds are classified based on what they invest in

1. MMF is like a savings account basically but with a better yield and the fund manager tries to maintain it at 100 Naira, dividend payment may flutter from time to time. It invests in stable instruments and the risk to your money is low.

Why invest? It has a low entry level (5K). The holding period is one month (if you withdraw before the end of one month, you pay a penalty).

2. FIF and HF have instruments whose nature are not stable in their composition which go up and down also hence the reason for the value fluctuating.

Why invest? You can make more money in FIF and HY than MMF hypothetically but you can also lose more...they are of medium risk to high risk. As you can see above in my earlier post, MMF would make 13-14% this year but FIF has already made 16.85% (my figure which includes dividend compounded) which is the positive side of the equation, we could also be on the negative side of it.

If you are looking for low risk and safety of principal then MMF is your best bet. However, if the rates of Bonds and TBills fall, be sure the effect will be felt in MMF also since that is what majority of the funds goes into. Think of MMF as you investing in Bonds and Tbills without the hassles of contacting your bank to buy these instruments on your behalf, ease of management and liquidation...of course you pay a price for all that (~1% goes into the fund manager's pocket). In my general scheme of things...it is a small price to pay for simplicity.

There is a saying that no one can time the market and i agree absolutely. You can get lucky once in a while but it is a losers game, HF and FIF tries to help you with that as against you picking stocks yourself...

The following might shed more light on the 3 funds from the fund manager's perspective

http://www.fbncapital.com/docs/default-source/fbn-money-market-fund-fact-sheets/fbn-money-market-fund-factsheet---august-2015.pdf?sfvrsn=2

http://www.fbncapital.com/docs/default-source/fbn-heritage-fund-fact-sheets/fbn-heritage-fund-factsheet---august-2015.pdf?sfvrsn=2

http://www.fbncapital.com/docs/default-source/fbn-fixed-income-fund-fact-sheet/fbn-fixed-income-fund-factsheet---august-2015.pdf?sfvrsn=2


****addition****
Playing around the Fund Manager's site I saw this. You would agree even your MMF % is greater than what they have here due to how the calculations are done

http://www.fbncapital.com/asset-management/fund-prices

please I don't understand the N100 thing. is that the processing fee or what

ernie4life:


FBN MMF is what you need

how do I contact them to start the process. thanks

Kennyfancy:
yes, plenty, contact me, i will give u enough infor, some of the company are own by nairaland member. One is already trading for me

sir I would really like more info on that can we talk via email kossyanyasor@gmail.com thank u

dopedude:


how do I contact them to start the process. thanks

Oga carpenter can help you with that

Johnrake69:


Bros respect... I have actually been following your posts for over a year now and I must say you know your onions.

Oga we still dey wait for the update, am sure you are taking your time to get us the right info.

dopedude:


please I don't understand the N100 thing. is that the processing fee or what

Oga Sir,

Please ensure you read page 1-18 and you know what you are getting into.

Therein, you will find all the answers. You can also visit the links in the post you quoted for reliable information from the fund managers.

100 naira is the value of a unit of the fund, no processing or licensing fee is payable.

Thanks my Oga...Earnie and Carpenter

Rates are dropping steadily on FBN MMF...looks like we might be heading to 10%. We don't see 12% and above anymore. Still in the 11% but still going...[code][/code] "it's about to go down low"

http://www.fbnquest.com/asset-management/fund-prices/mutual-funds-yield-history/historic-yield---november-2015

dopedude:

please I don't understand this. how much will my earning be if I invest 500k for 3 months. thanks

on 500k, you will get around 13,750 if the average rate for the 3 months is around 11%.

An interesting read

http://www.thesimpledollar.com/20-common-investment-mistakes-and-five-simple-steps-to-avoid-them/

ernie4life:
Add to what carpenter has said, MPR is the highest rate banks can give you on your deposit, currently it's 13%.

when the rates are reduced the interest become less attractive to investors.

so when CAN feels there is too much money in circulation they simply increase the MPR leaning to more people giving banks there money in form of fixed deposit etc.

The MPC meeting is on-going and attached is what some analysts think we should expect.