Sunbellar: Absolutely risk free. Just like normal term deposit.

No

@seun, i know of Kgif,it is absolutely risk free, you get a guaranteed income at the end of the agreement which is usually 1 year, like kgif, you get 12% base on the current MPR of the Cbn which currently stand at12%. On 10M you get 1.2M, there is also a clause in the agreement if Mpr changes or goes higher than 12% , investor shares 35% if the mpr increases, but not less than 12% as interest and your capital is guaranteed

Seun: No

Sorry you can't teach me my job.

i got a call from one of the investment house this morning, the kgif rate is 12% (which is the current MPR) for now and the interest will be paid every 6 month depending on the current MPR.

princeuk21: i got a call from one of the investment house this morning, the kgif rate is 12% (which is the current MPR) for now and the interest will be paid every 6 month depending on the current MPR.

that is correct...kgif pays me every January and July like clockwork

Sunbellar:
Absolutely risk free. Just like normal term deposit.

no investment is 'absolutely' risk free...government securities in a jungle like Nigeria are even riskier and that's why foreigners bring in short term billions of $ to trade and get out at a moments notice

confluence: @seun, i know of Kgif,it is absolutely risk free, you get a guaranteed income at the end of the agreement which is usually 1 year, like kgif, you get 12% base on the current MPR of the Cbn which currently stand at12%. On 10M you get 1.2M, there is also a clause in the agreement if Mpr changes or goes higher than 12% , investor shares 35% if the mpr increases, but not less than 12% as interest and your capital is guaranteed

everything you have said is correct except the absolutely risk free part...No investment is risk free. the risk of recovering your money and making a profit might be quite low that it is considered insignificant, that doesn't mean absolutely risk free

walcolm:

no investment is 'absolutely' risk free...government securities in a jungle like Nigeria are even riskier and that's why foreigners bring in short term billions of $ to trade and get out at a moments notice

Hope you know first bank mm is a subsidiary of fbn holding plc and I know you don't have upto a billion $ that can give the bank any concern even if the economy collapsed.

@walcom, Thank you sir , your is point well noted

Sunbellar:
Hope you know first bank mm is a subsidiary of fbn holding plc and I know you don't have upto a billion $ that can give the bank any concern even if the economy collapsed.

first of all, the people who bring in $billion short change the clowns in CBN, first bank and most nigerian banks to make ridiculous spread on their money

if the nigerian economy collapses, what's first bank going to be standing on?

No investment is risk free.

With respect to this thread, tbills are loans to a govt.

Should the govt fail, you might be holding useless paper.

Investing directly by yourself or (indirectly) via a fund, you bare the same risk. Buying through a fund, you have handed the cash over to a guy ( fund manager) and said "hey" buy for me...


A second level of risk is added by buying via a fund if the fund is poorly managed. The govt of the country didn't fail and is paying its debts, however, the guy (fund) you handed your money is bad in his accounting, management or whatever else.


Having said that, these "guys" (funds) are regulated by the SEC. You would also do your due diligence to hand your money to the more trusted "guys"


Chances are Nigerian govt "won't" do a total collapse in the next 2 years- and Stanbic ( or FBN Capital or InvestmentOne) "will" manage their cash and portfolios properly.


Not totally risk free, but low risk.


Peace.

when is the next auction pls?

adetunrayo: when is the next auction pls?

The last was yesterday.

Any info on the successful bidding rate?

filani: Any info on the successful bidding rate?

Dear xxxxx
We wish to inform you that your bid for a Treasury Bill of xxxxx with reference number 110140407485 was successful. Full details below 

Ref. Code110140407485
Principal xcxxxx
Rate9.50%
Tenor91 Days
Bid Date7/24/2014
Maturity Date10/23/2014


Thank you for choosing FirstBank.

filani: Any info on the successful bidding rate?

I hope u are not jumping on the bang Wagon for the fun of it.
A good investor should be able to mine data or stay up to date if u are not using an a progessional. Niaija issued Tbills are debt of FGN...with significant risk compared to U.S. that's why it's cheaper for u.s to borrow compared to naija govt whom have to offer more.
you earn very little or nothing. Some multi national companies bonds are even considered less riskier with better Real Returns

Desanta:

Dear xxxxx
We wish to inform you that your bid for a Treasury Bill of xxxxx with reference number 110140407485 was successful. Full details below 

Ref. Code110140407485
Principal xcxxxx
Rate9.50%
Tenor91 Days
Bid Date7/24/2014
Maturity Date10/23/2014


Thank you for choosing FirstBank. 

Interest at 0.095 is a sign naira will appreciate it remain within acceptable bands
Inflation rate is almost same year on year....just a few basis point. Foreign investors will earn extra basis point from $/Naira with a Dollar Futures contract for the life of this 91 day tenor.. to lock in expected naira appreciation

Desanta:

Dear xxxxx
We wish to inform you that your bid for a Treasury Bill of xxxxx with reference number 110140407485 was successful. Full details below 

Ref. Code110140407485
Principal xcxxxx
Rate9.50%
Tenor91 Days
Bid Date7/24/2014
Maturity Date10/23/2014


Thank you for choosing FirstBank. 

Interest at 0.095 is a sign naira will appreciate it remain within acceptable bands
Inflation rate is almost same year on year....just a few basis point. Foreign investors will earn extra basis point from $/Naira with a Dollar Futures contract for the life of this 91 day tenor.. to lock in expected naira appreciation

delgroveng:
I hope u are not jumping on the bang Wagon for the fun of it.
A good investor should be able to mine data or stay up to date if u are not using an a progessional. Niaija issued Tbills are debt of FGN...with significant risk compared to U.S. that's why it's cheaper for u.s to borrow compared to naija govt whom have to offer more.
you earn very little or nothing. Some multi national companies bonds are even considered less riskier with better Real Returns

like which? How do we invest in them?

delgroveng:

Interest at 0.095 is a sign naira will appreciate it remain within acceptable bands
Inflation rate is almost same year on year....just a few basis point. Foreign investors will earn extra basis point from $/Naira with a Dollar Futures contract for the life of this 91 day tenor.. to lock in expected naira appreciation

You make absolutely no sense. All you are doing is dropping a few terms you heard on Bloomberg/CNBC to try to bamboozle others.

Unfortunately for you, most on here are experienced investors and business people and will see through you.

pappilo:

You make absolutely no sense. All you are doing is dropping a few terms you heard on Bloomberg/CNBC to try to bamboozle others.

Unfortunately for you, most on here are experienced investors and business people and will see through you.

. LOL

pappilo:

You make absolutely no sense. All you are doing is dropping a few terms you heard on Bloomberg/CNBC to try to bamboozle others.

Unfortunately for you, most on here are experienced investors and business people and will see through you.

Rotfl

pappilo:

You make absolutely no sense. All you are doing is dropping a few terms you heard on Bloomberg/CNBC to try to bamboozle others.

Unfortunately for you, most on here are experienced investors and business people and will see through you.

You could pls indicate the place I don't make sense.
That's if u understand a thing I have said

I believe this is a place for learned investors so pls argue professionally. Business people doesn't mean you are a CFA.
A portfolio full of tbills...u can as well pack your pepper un any commercial bank. What yield do u earn to justify this meager returns.
you guys are too young to be putting all ur millions in tbills...make sure it's only 20% of ur total portfolio u have there..lets help allocate capital efficiently

Tbills are tax deductible..just one advantage for small timer.
there are too many signals economist could read out of the current interest rate. Such as the movement of our beloved currency...expected inflation rate. Some nationals are here mostly for the opportunity in currency appreciation depends on which they stake their money..appre or depre.
So u need many little info...guys patronize equity fnds more with good track record and flexible rules.
Am not here to recommend any brokerage house but to empower a few to boost the real economy in ur investment choice while making handsome returns
Broker is not the same as CFA...so don't follow whatever ur broker says.

Seriously...people na wa o.

10+% return is meager?

Say you open a shop selling provisions. How much profit do you add to each biscuit pack, or powder milk or whatever?

I'd say anywhere between 5-25% depending....

Unless you are selling d*ope, or other high value items- 10% aint "meager" by any stretch of imagination.

coderXO: Seriously...people na wa o.

10+% return is meager?

Say you open a shop selling provisions. How much profit do you add to each biscuit pack, or powder milk or whatever?

I'd say anywhere between 5-25% depending....

Unless you are selling d*ope, or other high value items- 10% aint "meager" by any stretch of imagination.

By all means 9.5-12% yearly is not small.
A trader that sells buscuit at a 10% markup and has a sales turn over of 5 times. That's 50% profit in 365 days, after tax might still have 30%
Tbills are excellent asset in a portfolio to have a balanced risk level
Unlike a hypothetical
Seun portfolio(5million worth)
Expected Return-ER
Tbills- 1million (20%)- ER-12%
Commercial paper(short term like Tbills)-N500g)- (10%) ER- 15%
AAA rated naija bonds- N1mill (20%) ER - 16%
Equity/Equity funds-
Blue chip- confirmed business model and track record of dividend payment - Guiness, card bury -(20%) 1million - ER - 20%

Zenith, Julius Berger- low interst rate biz will be good for them or govt cash injection-(10%)N500g
- ER - 25%
Growth companies- nairaland (private placement), IT firms- (10%)- N500g- ER- 40%
Agric Sectors- (10%) - N500g- ER- 25%
Total Expected Returns- 21%


Risk Allocation
Tbills - 0.05
Commercial paper for private comp- 0.08
AAA Company bonds- 0.10
Blue chip equity- 0.12
Banks/construction- 0.15
Growth- 0.30
Agric- 0.20
Total risk is still less than 1 for the Seun's portfolio

Hello guys,please can someone educate me on what the mutual fund is all about.

SolidMoney: Hello guys,please can someone educate me on what the mutual fund is all about.

Pls ask for this on a new thread since this thread is for discussing tbills.

I went to my bank to make enquiry about TB,I was given a form to fill,on the form I saw 10.25% interest rate per annun but I was confused though yet to complete the form.I thought the interest rate varies and is based on the auction.Why was 10.25% interest rate stated on the form?

SolidMoney: I went to my bank to make enquiry about TB,I was given a form to fill,on the form I saw 10.25% interest rate per annun but I was confused though yet to complete the form.I thought the interest rate varies and is based on the auction.Why was 10.25% interest rate stated on the form?

You are very correct. Tbill rates are not fixed. You should request for more information from them.

pappilo:

You make absolutely no sense. All you are doing is dropping a few terms you heard on Bloomberg/CNBC to try to bamboozle others.
.

Exactly my thoughts when I read his posts.