First week in January 2021 I bought USD at N470. USD as at date is N497. This reflects a 5.7% appreciation. If it hovers around this rate till end of this month, thats 5.7% in 6months.

Same period under review, I invested some Naira at the rate of 15% per annum for a period of 6months (7.5%). Had other investments as high at 20-30% for same period but I would not be use them as comparison.

This scenario may not be an appropriate benchmark but in reality, even with devaluation, my Naira investment has performed or is at par with my USD saving.

Going forward, I’ll consider having funds domiciled in USD with United capital instead of the money just seating in a bank account.

jobark:
First week in January 2021 I bought USD at N470. USD as at date is N497. This reflects a 5.7% appreciation. If it hovers around this rate till end of this month, thats 5.7% in 6months.

Same period under review, I invested some Naira at the rate of 15% per annum for a period of 6months (7.5%). Had other investments as high at 20-30% for same period but I would not be use them as comparison.

This scenario may not be an appropriate benchmark but in reality, even with devaluation, my Naira investment has performed or is at par with my USD saving.

Going forward, I’ll consider having funds domiciled in USD with United capital instead of the money just seating in a bank account.

Is united capital better than just using a dorm account?

LagosInter:


Is united capital better than just using a dorm account?

You get to make a decent interest in comparison, The advertised rate on their website may not be updated. I think it may hover around 4.5-5%. Minimum holding period is 6months or so.

The advantage here is that your dollars is appreciating at the same rate as t.bills investment that is less that 1year. So it’s sort of a win win if you don’t key into the 1year t.bill subscription.

Performance of some funds

FBN Quest fixed income fund

2017@19.1%

2018@12.9%

2019@20.6%

2020@18.4%

A one-off Investment of N10 million in 2017 is now worth N19.2 million


United Capital fixed income fund
2013@10%

2014@12%

2015@16%

2016@16%

2017@28.4%

2018@11.3%

2019@14.9%

2020@9.4%
A one-off Investment of N10 million in 2013 is now worth N29.8 million.



Vantage Guaranteed Income Fund

2011@7.1%

2012@12%

2013@12%

2014@12.5%

2015@12%

2016@11%

2017@13.7%

2018@12.2%

2019@11.7%

2020@8.6%


A one-off Investment of N10 million in 2011 is now worth N29.1 million.


Coral Income Fund

2011@9.5%

2012@10.15%

2013@8%

2014@7.3%

2015@11.6%

2016@11.2%

2017@17.4%

2018@12.9%

2019@12.2%

2020@6.8%

A one off Investment of N10 million in 2011 is now worth N27.5 million.


United Capital money market fund

2013@11%

2014@9%

2015@11.3%

2016@13.1%

2017@14.2%

2018@12.9%

2019@12.8%

2020@5.4%

A one-off Investment of N10 million in 2013 is now worth N23.3 million.


2020 was a bad year for most money market funds and fixed income funds.


N10 million invested in an income generating property in 2011, should be worth a minimum of N20 million and must have generated a total rental income of at least N7 million

pussiboner:
If one should advise you to convert "some" of your naira to dollar. It's a possible investment choice which one could explore due to the current situation of things.

I ask this question, what happens if Naira goes back to N380 in December?

I still don't see why someone earning in naira needs to convert to Dollar. What are you trying to achieve especially if you still need to convert the money back to naira to use.

Good question you asked.... I thought same in 2014-2015 and felt foriegn investors rushing to leave the country then at black market rates were being overly fearful. Perhaps they saw something I didn't...

There's an associated risk with every decision.. that's why one doesn't test the depth of a river with both feet... The naira might appreciate to 380 by December..same also it can depreciate to 550 by December...

The good thing with the naira/usd is that we have over 40 years of data to look at... In investing, I appreciate trends... Whether it was during IBB, Abacha, Jonathan or Buhari, at no time over the last 40 years has there been a significant gap between official and black market rates that the naira did not continue to devalue... As a matter of fact, the only periods the naira appreciated against the dollar were periods when the rates merged...

It was when I saw this and knew that its almost impossible for the naira to appreciate while having two rates with a 20% difference that I made my decision....
My plan is simple, as far as the CBN maintains this dual rates (which they are keen on doing for now), I'd hold a significant amount of my savings in usd and try to lock ip the rest in local assets (not just leave it in the bank). Whenever both rates merge, I'd cautiously move back into the naira and invest and wait for the next time such scenario repeats

I don't have access to cheap dollars and I don't run a business where I easily can pass costs on to consumers. So I have to protect myself for the future.

wwwtortoise:


It is pathetic.

Many schemes and policies that see daylights are in favor (monetarily or politically) of the “sacred cows”.

Sharia is blinding the northern youths from their atrocities.

If they succeed with gagging SW & SE with bans (crypt0, twitter . . . ), border closure and other detrimental policies. Then it’s going to be a long wait to 2023.

Hehe... Nigerias problem is a longstanding one which cuts across and has unfortunately worsened of late...

Just look at the fuel subsidy debacle that has carried on for decades.... What's even more interesting is that the amount spent on TAM of the refineries over the years is more than enough to build new ones

Tobex4realTobex234:


I almost wanted to doubt my mum when she said sand of 38k is now 70k.

I have stopped waiting for prices to drop and just carried on as I'm able... Cos it seems prices keep rising...
Obviously, folks who can easily pass costs over to the consumers will benefit more

Gov.Emefiele reading these past few pages and smiling deeply.

pussiboner:
If one should advise you to convert "some" of your naira to dollar. It's a possible investment choice which one could explore due to the current situation of things.

I ask this question, what happens if Naira goes back to N380 in December?

I still don't see why someone earning in naira needs to convert to Dollar. What are you trying to achieve especially if you still need to convert the money back to naira to use.

jedisco:


Good question you asked.... I thought same in 2014-2015 and felt foriegn investors rushing to leave the country then at black market rates were being overly fearful. Perhaps they saw something I didn't...

There's an associated risk with every decision.. that's why one doesn't test the depth of a river with both feet... The naira might appreciate to 380 by December..same also it can depreciate to 550 by December...

The good thing with the naira/usd is that we have over 40 years of data to look at... In investing, I appreciate trends... Whether it was during IBB, Abacha, Jonathan or Buhari, at no time over the last 40 years has there been a significant gap between official and black market rates that the naira did not continue to devalue... As a matter of fact, the only periods the naira appreciated against the dollar were periods when the rates merged...

It was when I saw this and knew that its almost impossible for the naira to appreciate while having two rates with a 20% difference that I made my decision....
My plan is simple, as far as the CBN maintains this dual rates (which they are keen on doing for now), I'd hold a significant amount of my savings in usd and try to lock ip the rest in local assets (not just leave it in the bank). Whenever both rates merge, I'd cautiously move back into the naira and invest.

I don't have access to cheap dollars and I don't run a business where I easily can pass costs on to consumers. So I have to protect myself for the future.

If PMS price eventually gets pinned at #380/L then watch as naira value continues its downward spiral.

Convert to USD or invest directly in appreciable assets or a business venture.
Leaving huge amount of naira in commercial bank (no matter the account type) is a recipe for loss.
Atleast from now till 2023.

This is a financial advice.

Access offered around 5% for 182 days T bills.


The Branch manager was pleading that we do fixed deposit at 3.5 % that she had fixed deposit targets to meet. Isn't that laughable?




Please assuming we had 50 million, what's the best way of doing T bills with it?

By bidding directly through banks or firms? If yes, which bank or firm is the best?

Or buying secondary market from banks, if yes, which bank is the best?.



Cc
Emmanuelewumi.

Ahiboilandgas
Chigo4u
Jedisco freeman67

LagosInter:
Access offered around 5% for 182 days T bills.


The Branch manager was pleading that we do fixed deposit at 3.5 % that she had fixed deposit targets to meet. Isn't that laughable?




Please assuming we had 50 million, what's the best way of doing T bills with it?

By bidding directly through banks or firms? If yes, which bank or firm is the best?

Or buying secondary market from banks, if yes, which bank is the best?.



Cc
Emmanuelewumi.

Ahiboilandgas
Chigo4u
Jedisco freeman67

Get in touch with your investment adviser or pray about it

jobark:


You get to make a decent interest in comparison, The advertised rate on their website may not be updated. I think it may hover around 4.5-5%. Minimum holding period is 6months or so.

The advantage here is that your dollars is appreciating at the same rate as t.bills investment that is less that 1year. So it’s sort of a win win if you don’t key into the 1year t.bill subscription.

I should be able to get the historical performance of United Capital Eurobond Fund for the past 5 years by the close of business tomorrow

emmanuelewumi:




Get in touch with your investment adviser or pray about it

Sir Ewumi, which adviser again knows more than you abeg,

You are my adviser, I need your input please.

Pls what is the current rate of treasury bills and if it is advisable to invest now, how can one go about it to invest.

emmanuelewumi:




Get in touch with your investment adviser or pray about it

United Capital Eurobond Fund was launched in 2017.

They have historical performance from 2018 to date, the fund under management is $72 million


The performance is not bad

LagosInter:


Sir Ewumi, which adviser again knows more than you abeg,

You are my adviser, I need your input please.

Keep on doing what produced the N50 million

Lazyyouth4u:

Not funny at all, that is what I do when I find it difficult to make a decision

Do you also have something for stanbic dollar funds within same time frame?

emmanuelewumi:
United Capital Eurobond Fund was launched in 2017.

They have historical performance from 2018 to date, the fund under management is $72 million


The performance is not bad

Biafran4life:
When I come here and read somethings,I just shake my head.The naira is useless, inflation is at 18 percent.. leave naija and run to country you earn dollars.The dollars is devalued 4 times and I will be laughing..

There is nothing as brilliant as updating oneself economically, as the world moves you move along. Those people you referenced in your post simply move along economically .

I don't believe that a short term fixed USD investments can outrightly outperform naira investments ,except miracle happens just like the boost in some US stocks and bttc BUT a long term holding will surely do. If for example you earn 5/6% on your eurobond investments and I earn 10% on TBS, technically I earn more than you but if I go to sleep with my earnings without putting my money to work to yield more then opposite will be the case.

A business minded trader doesn't really worry about naira devaluation because it's garbage in garbage out, some are even wise enough to keep part of thier profits in usd for future purchases

As a dollar investor/holder in nigeria, you can earn more in a long term but as a naira investor you will need to work harder to level up, you don't just keep naira idle in the bank and expect some bonuses but you can with dollar.

So if you don't have chunk of dollars for a long term investments or no legal access to hold as much usd as you want, simply keep making your naira work for you.

ojesymsym:
Do you also have something for stanbic dollar funds within same time frame?

No.


United Capital is about the best when it comes to getting historical report.


I think SEC should compel all fund managers to include a 5 year historical performance of their funds in their fact sheets and a 10 years historical performance in their annual reports.

I have written FSDH Asset Management, FBN Quest Asset Management about this, but they didn't reply my mail.

I sent a mail to SEC which they have acknowledged.


It was not easy getting the performances of the funds I just shared ie

FBN Quest fixed income fund

Coral income fund

Vantage Guaranteed Income Fund

etc.

emmanuelewumi:
United Capital Eurobond Fund was launched in 2017.

They have historical performance from 2018 to date, the fund under management is $72 million


The performance is not bad

They need to make updates to their fact sheet.

Firstly the minimum holding period as highlighted on their website is incorrect. 90days is not applicable and I feel they should correct it so as not to mislead people.

Secondly i also doubt the YTD rate as advertised. Their performance is good but slightly below what is captured for YTD performance.

jobark:


They need to make updates to their fact sheet.

Firstly the minimum holding period as highlighted on their website is incorrect. 90days is not applicable and I feel they should correct it so as not to mislead people.

Secondly i also doubt the YTD rate as advertised. Their performance is good but slightly below what is captured for YTD performance.

That was part of the fact sheet for March 2021.

I only screen shot what was necessary for me and not the whole information.


The information on the fact sheet is more relevant and authentic than the one on their website

jedisco:


I wouldn't say never on that.... If that happens just like in Lebanon, banks will connive with the very rich to move their forex out before it takes effect... It's the not so very connected that'd be trapped.

All the policies CBN brought out to tackle devaluation has so far failed.... There are little tricks left... These tricks are not new... they've been used in other climes...

Looking back, First thing CBN did was to blame rice and certain imports, then FG locked the border.
Next desperation started to set in and they blocked all parallel forex tranfer into the country insisting it must go via a specific route (thst failed),
then they banned crypt0 (as they thought incoming transfers were now through that route),
next was to start giving folks sending in forex extra naira to appease them to use the CBN medium- this was the height of desperation which of course has failed....

Now, that folks are no more buying the rice card and are asking questions, Theres are 3 possibilities I'm seeing.. First is a proper rise in oil price to bring some succour and allow them continue their rigmarole, next is to ban dom accounts under the patriotism narrative, last would be for the cbn to set up their portal to handle incoming diaspora remittance and pay out at the market rate...

I can assure you nothing will happen to dorm accounts. People think it’s the low hanging fruit so cbn will go against it but if you ban dorm accounts then naira will literally become useless. Only thing cbn can do is restrict cash deposits but stopping inflows into dorm accounts would be suicide mission for naira

Biafran4life:
When I come here and read somethings,I just shake my head.The naira is useless, inflation is at 18 percent.. leave naija and run to country you earn dollars.The dollars is devalued 4 times and I will be laughing.No Wonder a moniker is always saying audio billionaires.Go see that guy at aba,onitsha,lag doing serious business and making good money.He will tell you is long he has been buying dollars btw 480-500 and making good profit in business.
My stay in the Villa for over a week gave me the opportunity to really go round not like the festive period that is always crowded with people so you limit exploring the Villa.When you see most inherited land fenced and abandoned and you enquire of it present condition.The answer is always the same,is so person living abroad and Since the past yrs he came back and fenced it or layed foundation to build the next Aso rock and gone back it has been silence.To even send 1000 dollars back is a problem
Then you see a nice structure and you enquire .The answer, is so person in aba,pH ,lag etc who built it and just did marriage things.
My bro is telling me is now he is really making good money in his wine trade.Infact he started his personal house in asaba middle last year and finished in december.This year he upgraded his car ,plus a three story building in onitsha going on.He is presently towards the second floor with all the cost in building materials.When I asked how he is managing cement and rods at present price.He tells me he is equally making the money in his business as prices have equally changed
My iniaw started 4 buildings Last year and all has been roofed presently.One in lekki,one in owerri and two in the Villa for him and his bro as they are into partnership .The four are all story buildings Thr goods are coming steady from Turkey and they are selling and making good money.
Then someone comes here every day to be shouting doomsday.I hate this government like mad but opportunities are out thr plenty in naija to make money and people are making money.I have always said I am street and I say what I see in the streets.If it likes let dollars get to 1000 or inflation enter 40percent.People are making money and the guys abroad or having dollars are not doing better than the locals and those putting thr naira in good opportunity .I never see people way be audio like this abroad guys
They come home after years,buy car,flex with girls from one hotel to the next,manage buy 5million - 10 million land and then disappeared for another 5yrs or above.They will tell you Julius barger is coming to erect a structure.They marry or impregnat one girl and leave her here after performing film trick for the two weeks or a month they stay in naija.Then sell the car to book ticket back and you hear nothing again.

Multiple likes for this abeg

The Keyword now is Japa and never return

So if I get a High paying Job... I should still Japa to start from scratch

Most people saying this just wanna feel among

LagosInter:
Access offered around 5% for 182 days T bills.


The Branch manager was pleading that we do fixed deposit at 3.5 % that she had fixed deposit targets to meet. Isn't that laughable?




Please assuming we had 50 million, what's the best way of doing T bills with it?

By bidding directly through banks or firms? If yes, which bank or firm is the best?

Or buying secondary market from banks, if yes, which bank is the best?.



Cc
Emmanuelewumi.

Ahiboilandgas
Chigo4u
Jedisco freeman67

Considering general TB rates at the moment, the 5% Access gave you for 182 days seem to be fair. The last primary market auction successful rate for that tenure was 3.5.

Yes having 50 mil qualifies you to bid by yourself. If you can project/time it very and your bid is successful you will be glad you did. However, if it is unsuccessful then you will have to wait for a fortnight there by wasting time without any guarantee that you bid will successful.

For me, I use banks mostly. The banks I use mostly before now was FBN and Stanbic IBTC. However, I do not know what is happening with them of recent. While firstbank seldom accept requests these days, Stanbic IBTC will always accept but will only inform you that their bid was unsuccessful a week after the auction. I am thinking of porting soon to another bank.

As for buying from the secondary market, you can check sterling Bank and union bank to see their rates. If what's on their I-invest and M36 app is something to go by the rates there are not too bad with the current TB situation.

Biafran4life:
When I come here and read somethings,I just shake my head.The naira is useless, inflation is at 18 percent.. leave naija and run to country you earn dollars.The dollars is devalued 4 times and I will be laughing.No Wonder a moniker is always saying audio billionaires.Go see that guy at aba,onitsha,lag doing serious business and making good money.He will tell you is long he has been buying dollars btw 480-500 and making good profit in business.
My stay in the Villa for over a week gave me the opportunity to really go round not like the festive period that is always crowded with people so you limit exploring the Villa.When you see most inherited land fenced and abandoned and you enquire of it present condition.The answer is always the same,is so person living abroad and Since the past yrs he came back and fenced it or layed foundation to build the next Aso rock and gone back it has been silence.To even send 1000 dollars back is a problem
Then you see a nice structure and you enquire .The answer, is so person in aba,pH ,lag etc who built it and just did marriage things.
My bro is telling me is now he is really making good money in his wine trade.Infact he started his personal house in asaba middle last year and finished in december.This year he upgraded his car ,plus a three story building in onitsha going on.He is presently towards the second floor with all the cost in building materials.When I asked how he is managing cement and rods at present price.He tells me he is equally making the money in his business as prices have equally changed
My iniaw started 4 buildings Last year and all has been roofed presently.One in lekki,one in owerri and two in the Villa for him and his bro as they are into partnership .The four are all story buildings Thr goods are coming steady from Turkey and they are selling and making good money.
Then someone comes here every day to be shouting doomsday.I hate this government like mad but opportunities are out thr plenty in naija to make money and people are making money.I have always said I am street and I say what I see in the streets.If it likes let dollars get to 1000 or inflation enter 40percent.People are making money and the guys abroad or having dollars are not doing better than the locals and those putting thr naira in good opportunity .I never see people way be audio like this abroad guys
They come home after years,buy car,flex with girls from one hotel to the next,manage buy 5million - 10 million land and then disappeared for another 5yrs or above.They will tell you Julius barger is coming to erect a structure.They marry or impregnat one girl and leave her here after performing film trick for the two weeks or a month they stay in naija.Then sell the car to book ticket back and you hear nothing again.

So villa wen you go don open your eyes abi?. When @Lazyyouth4u dey always shout audio, dem go abuse am.

Dem dey abuse all those abroad people wen relocate come my place after so many years now. Before dem go dey hail them because dey come in during xmas with one tokunboh SUV, spend a week or two to flex and run back and people think they are rich. I have always told people that i dare them to spend a month in the villa and let us see how rich they are. It is when some of them came back and started selling borehole water that they could put up a building.

OgogoroFreak:
Yes, it will always do better in the long run but how would you be paying your bills in that long run? That is why I mentioned common sense.

Even while you invest, it's a good idea to still have cash ready or access to cash to grab certain opportunities when they come.

I recently bought a really cheap property at distress sale. Two plots of land with uncompleted building on it. I almost lost out on the deal even with my ready cash. Imagine if I didn't have cash or waiting to liquidate an investment?

I will be building an olosho/ashawo joint there(heard the girls pay as high as 5k per day for a room) where people can come relax, drink and carry olosho. This is why I have been spending more time reading posts in the bear palour olosho thread. Just to understand my would be customers.

Na wa for you.

Are you going to pay tithe from this type of business?

Don't use funds from this business to pay your children's school fees ooo.


Have you done this type of business before?

Where is the location of this proposed business?

emmanuelewumi:


Na wa for you.

Are you going to pay tithe from this type of business?

Don't use funds from this business to pay your children's school fees ooo.


Have you done this type of business before?

Where is the location of this proposed business?

hmmmmm i wonder what are the repercussions

jobark:


hmmmmm i wonder what are the repercussions

Nothing.

A friend who is a senior police officer, said they don't use egunje and bribe to pay their children's school fees. School fees are paid from their salaries.

Egunje or bribe is for flenjor or pay debt. I introduced him to mutual funds, he now uses part of it for monthly mutual fund Investments

emmanuelewumi:


Na wa for you.

Are you going to pay tithe from this type of business?

Don't use funds from this business to pay your children's school fees ooo.


Have you done this type of business before?

Where is the location of this proposed business?

I don't pay tithe. I stopped that habit long ago when I was infact duped by several men of God I respected so much when I wanted to stop my drinking habit.

Shiit money no dey smell na I can use my money to pay anything. I am not religious and I don't do religion bro.

Never did such business before though but I have someone actively into it. In this business, he's my mentor.

He told me how lucrative it is and he's already building his 8th brothel already. Someone that was broke selling beer in crates in Ajegunle that year.

OgogoroFreak:
I don't pay tithe. I stopped that habit long ago.

Shiit money no dey smell na I can use my money to pay anything. I am not religious bro.

Never did such business before though but I have someone actively into it. In this business, he's my mentor. He told me how lucrative it is and he's already building his 8th brothel already. Someone that was broke selling bear in crates in Ajegunle that year.

Where is the location?

Better to get a manager. Let him give you 65% of the revenue generated, he will use the remaining 35% to run the business and make his profit.