hello fellow Nairalanders, wat is d implication of this reduction of MPR on mutual fund investment? oga carpenter n co reason am

Key take away from the just conclude MPC Meeting:
 
MPR revised lower to 11.00% from 13%;

Corridor around the MPR now -700 to 200 bps

CRR down from 25% to 20%

5% reduction to be directed strictly to real sector lending

ONLY banks that have transactions that meet CBN real sector criteria will benefit

yak:
hello fellow Nairalanders, wat is d implication of this reduction of MPR on mutual fund investment? oga carpenter n co reason am

The rates we presently enjoy will go further down but then we hope that will kick start the economy as borrowing will be a lot cheaper.

ernie4life:


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

Boss will find time and give a comprehensive info about the rest. Thanks

carpenter:



The rates we presently enjoy will go further down but then we hope that will kick start the economy as borrowing will be a lot cheaper.

well done boss.... i just need clarification on some things i noticed while going through FBN MMF History chart.
I noticed some days were missing and not accounted for,i tried confirming if those days were declared holidays but figured they weren't. I know NSE doesn't trade on weekends but what about other days that are missing from the chart? Please can you help clarify this? and i wouldn't mind having your mobile contacts as well. if its ok by u,i'll request it thru PM

@Earnie...... thanks for your time

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Johnrake69:


Boss will find time and give a comprehensive info about the rest. Thanks

ha! no o

That is all I need to know my brother. The rest is left for the finance guys to explain.

I keep it simple, I worry about what worries me, nothing more.

The lending rate reduced means I get less yield from my investments in MMF but could be great news for the country if we take advantage of it. In simple words everything Ernie wrote above was done to make sure money is available in the economy. Lendings rates reduced, cash reserve reduced.

Edited: This is probably one of those times when my eyes were seeing something but my head was somewhere else, and my hands were in their own world. Got to be able to laugh at yourself for messing up [color=#000099][color=#000099][/color][font=Lucida Sans Unicode]

Johnrake69:


Boss will find time and give a comprehensive info about the rest. Thanks

ha! no o

That is all I need to know my brother. The rest is left for the finance guys to explain.

I keep it simple, I worry about what worries me, nothing more.

The lending rate reduced means I get less yield from my investments in MMF but could be great news for the country if we take advantage of it. In simple words everything Ernie wrote above was done to make sure money is available in the economy. Lendings rates reduced, cash reserve reduced.

Edited: This is probably one of those times when my eyes were seeing something but my head was somewhere else, and my hands were in their own world. Got to be able to laugh at yourself for messing up [/color][color=#000099][font=Lucida Sans Unicode][/font]

Johnrake69:


Boss will find time and give a comprehensive info about the rest. Thanks

ha! no o

That is all I need to know my brother. The rest is left for the finance guys to explain.

I keep it simple, I worry about what worries me, nothing more.

The lending rate reduced means I get less yield from my investments in MMF but could be great news for the country if we take advantage of it. In simple words everything Ernie wrote above was done to make sure money is available in the economy. Lendings rates reduced, cash reserve reduced.

Edited: This is probably one of those times when my eyes were seeing something but my head was somewhere else, and my hands were in their own world. Got to be able to laugh at yourself for messing up

taiwoliu:
well done boss.... i just need clarification on some things i noticed while going through FBN MMF History chart.
I noticed some days were missing and not accounted for,i tried confirming if those days were declared holidays but figured they weren't. I know NSE doesn't trade on weekends but what about other days that are missing from the chart? Please can you help clarify this? and i wouldn't mind having your mobile contacts as well. if its ok by u,i'll request it thru PM

@Earnie...... thanks for your time

I noticed the same but because I work with the average for the year I don't bother much about daily prices, I just look at it once in a blue moon (I think it is fair to say we will be around 12.5-13% for 2015 till date). You could write them to explain the omissions, maybe it is an oversight.

My phones are roaming so I will not pick up unless it is a call from a family member. I believe we have exchanged emails and my number should be on my contact details (Watsapp only abeg). I also think it is nice when if all questions are asked here and when I make a mistake, someone can correct me instead of me passing across my version of what it is...

carpenter:


I noticed the same but because I work with the average for the year I don't bother much about daily prices, I just look at it once in a blue moon (I think it is fair to say we be around 12.5-13% for 2015 till date). You could write them to explain the omissions, maybe it is an oversight.

My phones are roaming so I will not pick up unless it is a call from family member. I believe we have exchanged emails and my number should be on my contact details (Watsapp only abeg). I also think it nice when if all questions are asked here and when I make a mistake, someone can correct me instead of me passing across my version of what it is...

really appreciate ur response. I had whatsapp in mind as well and it's cos I v personal questions I can't ask here. Your number isn't there but I'll send an email that contains mine.

taiwoliu:
really appreciate ur response. I had whatsapp in mind as well and it's cos I v personal questions I can't ask here. Your number isn't there but I'll send an email that contains mine.

No worries then, well noted and you are right about personal questions...better to be kept personal.

Once I receive your email, I will send my number across.

As received...

............................................................................................................................................................................


25 November, 2015



Dear Valued Customer,



STATE OF THE MARKETS



Greetings from your investment management team at FBN Capital Asset Management.



Over the last 8 weeks, from 23 September, you may have noticed that market interest rates, in this case measured by Treasury Bills, FGN Bonds and bank tenured deposits have declined considerably. For example when the fixed income markets closed yesterday 24 November, a 364 day Treasury Bills yield to maturity had declined from about 15% to about 7%, the yield to maturity on long-dated bonds, e.g. the FGN 2024 from 15% to 11% and bank tenured deposits from about 13% to about 5%. These are a selection of fixed income instruments our mutual funds invest in to deliver on the investment objective of each respective fund. The Monetary Policy Committee (MPC) at the conclusion of its meeting yesterday 24 November, 2015 has now also reduced the Monetary Policy Rate (MPR) from 13% to 11% signaling its desire to keep rates low and stimulate the economy. The equity market has fared no better haven fallen 20.37% year to date.



The consequence of all these is that as the pool of fixed income investments in each portfolio matures and we get new inflows into the funds, we invest and reinvest at these lower market rates which impact the returns on the fund. As you have entrusted us with investing your savings in our mutual funds, please be rest assured that we at FBN Capital Asset Management remain unflinchingly committed to delivering competitive returns to you and we will continue to use our skills and in-house expertise to source for and invest in assets for each fund that deliver returns above market expectations and grow your savings and wealth.



Please look out for the next factsheet of each product, delivered to your inbox in the first week of next month which will give you more information of market conditions and returns on each fund.



Once again, we thank you for choosing FBN Capital Asset Management and our products.

Yours sincerely,



Michael Oyebola

Managing Director / Chief Investment Officer

Signed

carpenter:

As received...

............................................................................................................................................................................


25 November, 2015



Dear Valued Customer,



STATE OF THE MARKETS



Greetings from your investment management team at FBN Capital Asset Management.



Over the last 8 weeks, from 23 September, you may have noticed that market interest rates, in this case measured by Treasury Bills, FGN Bonds and bank tenured deposits have declined considerably. For example when the fixed income markets closed yesterday 24 November, a 364 day Treasury Bills yield to maturity had declined from about 15% to about 7%, the yield to maturity on long-dated bonds, e.g. the FGN 2024 from 15% to 11% and bank tenured deposits from about 13% to about 5%. These are a selection of fixed income instruments our mutual funds invest in to deliver on the investment objective of each respective fund. The Monetary Policy Committee (MPC) at the conclusion of its meeting yesterday 24 November, 2015 has now also reduced the Monetary Policy Rate (MPR) from 13% to 11% signaling its desire to keep rates low and stimulate the economy. The equity market has fared no better haven fallen 20.37% year to date.



The consequence of all these is that as the pool of fixed income investments in each portfolio matures and we get new inflows into the funds, we invest and reinvest at these lower market rates which impact the returns on the fund. As you have entrusted us with investing your savings in our mutual funds, please be rest assured that we at FBN Capital Asset Management remain unflinchingly committed to delivering competitive returns to you and we will continue to use our skills and in-house expertise to source for and invest in assets for each fund that deliver returns above market expectations and grow your savings and wealth.



Please look out for the next factsheet of each product, delivered to your inbox in the first week of next month which will give you more information of market conditions and returns on each fund.



Once again, we thank you for choosing FBN Capital Asset Management and our products.

Yours sincerely,



Michael Oyebola

Managing Director / Chief Investment Officer

Signed

I saw this coming!!

Since the Mutual funds are all invested in FGN Bonds and TBills; with the drop in the rates and Yields...it was only a matter of time!

Clearly the days of high yields in financial investments is over!

make everyone go invest their money for real business or farms! or be ready to receive only 3% returns p.a

feelamong:


I saw this coming!!

Since the Mutual funds are all invested in FGN Bonds and TBills; with the drop in the rates and Yields...it was only a matter of time!

Clearly the days of high yields in financial investments is over!

make everyone go invest their money for real business or farms! or be ready to receive only 3% returns p.a

sobs, in three months the returns shud be around 5-6

carpenter:

As received...

............................................................................................................................................................................


25 November, 2015



Dear Valued Customer,



STATE OF THE MARKETS



Greetings from your investment management team at FBN Capital Asset Management.



Over the last 8 weeks, from 23 September, you may have noticed that market interest rates, in this case measured by Treasury Bills, FGN Bonds and bank tenured deposits have declined considerably. For example when the fixed income markets closed yesterday 24 November, a 364 day Treasury Bills yield to maturity had declined from about 15% to about 7%, the yield to maturity on long-dated bonds, e.g. the FGN 2024 from 15% to 11% and bank tenured deposits from about 13% to about 5%. These are a selection of fixed income instruments our mutual funds invest in to deliver on the investment objective of each respective fund. The Monetary Policy Committee (MPC) at the conclusion of its meeting yesterday 24 November, 2015 has now also reduced the Monetary Policy Rate (MPR) from 13% to 11% signaling its desire to keep rates low and stimulate the economy. The equity market has fared no better haven fallen 20.37% year to date.



The consequence of all these is that as the pool of fixed income investments in each portfolio matures and we get new inflows into the funds, we invest and reinvest at these lower market rates which impact the returns on the fund. As you have entrusted us with investing your savings in our mutual funds, please be rest assured that we at FBN Capital Asset Management remain unflinchingly committed to delivering competitive returns to you and we will continue to use our skills and in-house expertise to source for and invest in assets for each fund that deliver returns above market expectations and grow your savings and wealth.



Please look out for the next factsheet of each product, delivered to your inbox in the first week of next month which will give you more information of market conditions and returns on each fund.



Once again, we thank you for choosing FBN Capital Asset Management and our products.

Yours sincerely,



Michael Oyebola

Managing Director / Chief Investment Officer

Signed

Nooooo!!

This isn't happening. Like play, like play money market fund rates will soon go below the inflationary rate.

The stock market, here I come, I hear the ASI is picking up

Favolly:

Nooooo!!

This isn't happening. Like play, like play money market fund rates will soon go below the inflationary rate.

The stock market, here I come, I hear the ASI is picking up

Stock market is not for the lily livered op!

you can see your funds eroded if care is not taken...

like they say its a Casino Royale out there in the NSE...

dont put any short term funds there and make sure its the sort of funds you can afford to loose...

Me I play the NSE but i will rather earn bel;ow inflation rates and be sure my funds are safe than loose all in the quest for higher yields..

BTW i have also decided to go into farming! at least we can apply for the low interest rates to expand...

feelamong:


I saw this coming!!

Since the Mutual funds are all invested in FGN Bonds and TBills; with the drop in the rates and Yields...it was only a matter of time!

Clearly the days of high yields in financial investments is over!

make everyone go invest their money for real business or farms! or be ready to receive only 3% returns p.a

heheheheh....it cannot be that bad with MPR at 11% a savings account will earn you a minimum of 3.3%p.a.

We cannot all invest "real businesses" directly but you do make a valid point. Inflation values will most likely come down also, so we should still be doing better than inflation.

feelamong:


Stock market is not for the lily livered op!

you can see your funds eroded if care is not taken...

like they say its a Casino Royale out there in the NSE...

dont put any short term funds there and make sure its the sort of funds you can afford to loose...

Me I play the NSE but i will rather earn bel;ow inflation rates and be sure my funds are safe than loose all in the quest for higher yields..

BTW i have also decided to go into farming! at least we can apply for the low interest rates to expand...

Abeg where your farm dey make i come buy one beside you...I want to grow gold

carpenter:


No worries then, well noted and you are right about personal questions...better to be kept personal.

Once I receive your email, I will send my number across.

sent
Good a.m fam

igboboy3:
So, I started the Stanbic IBTC MMF today. It was quite an easy process; just your documents and funds transfer receipt. The bank staff were quite courteous. Within 24hrs, I had received an email alert giving me details of my online access password.
I logged on to their portal and my 100k don add 31naira on top
Let's see how the whole thing goes

Bros. how far about your MMF please I want to hear good outcome result from you. I want to go to their office on Monday. thanks

Stanbic MMF-11.08%, ARM MMF-11.55% and FBN MMF-10.84%

its going to get worse before it gets better, market is still reacting.

ednut1:
Stanbic MMF-11.08%, ARM MMF-11.55% and FBN MMF-10.84%

It will go lower as current investments reach their maturity and new ones are loaded.

Again don't be perturbed, see it at a savings account that gives you at least tripple what a bank will give you...if you have a business that yields more and your money will be relatively safe...jump ship.

carpenter:


It will go lower as current investments reach their maturity and new ones are loaded.

Again don't be perturbed, see it at a savings account that gives you at least tripple what a bank will give you...if you have a business that yields more and your money will be relatively safe...jump ship.

bro. pls give me online biz ideas ........thanks bro

9janinja:
bro. pls give me online biz ideas ........thanks bro

I don't know of any online business bro, am sure there will be a few threads on nairaland with people familiar with such.

Although, you may want to think of this as partly online too, I have not been to any of the mutual fund offices before, I send them money via internet banking, I get my redemption through the same mode, I never see what they sell...online business too if you ask me

Meristem launched Equity Market Fund and Money Market Fund which has become active now.

Any investors here?

Please who is a Stanbic person here? Or who knows how I can open a fund with them?

davide470:
Meristem launched Equity Market Fund and Money Market Fund which has become active now.

Any investors here?

Meristem sure picked a wrong time to launch a money market fund

Favolly:
Please who is a Stanbic person here? Or who knows how I can open a fund with them?

Ednut1. He used to be.

@ carpenter and feel among,
I see una hand oooo.

Tb down, MF down, nse down ,everything is going down. Real estate is the next thing if u have d liver.

mercylicious:
@ carpenter and feel among,
I see una hand oooo.

Tb down, MF down, nse down ,everything is going down. Real estate is the next thing if u have d liver.

Na Ernie house we dey o! The guy provides accommodation and feeding...

Mercylicious...we no know say you dey reach this side.

This is for we the conservative ones, we may not be making much....but we are not loosing either.

As for NSE, I maintain it is Sales!Sales!! Sales!!! for investors, you get a good bargain.

Real-Estate too hot to touch...

Good morning house. I really appreciate you effort in this thread. more grace to you all please I have 50k to invest kindly help me with best option. I need a mentor. thanks for accepting me.

moyin2009:
Good morning house. I really appreciate you effort in this thread. more grace to you all please I have 50k to invest kindly help me with best option. I need a mentor. thanks for accepting me.

good morning, welcome to the house.
at bolded, wrong question was the first answer i got wen i asked same question. i later learnt that no1 can give u best option cause investment decision is self made.
investment opportunities abound such as; stock market, real estate, mutual funds, treasury bills etc. my advice is you learn about these investments nd make the best choice according to your conviction. #my2cents

taiwoliu:
good morning, welcome to the house.
at bolded, wrong question was the first answer i got wen i asked same question. i later learnt that no1 can give u best option cause investment decision is self made.
investment opportunities abound such as; stock market, real estate, mutual funds, treasury bills etc. my advice is you learn about these investments nd make the best choice according to your conviction. #my2cents

this works for me