Mutual Funds In Nigeria

[donne4real]

The attached document contains basic information on the major mutual funds in Nigeria. Enjoy reading. Distribute and comment as well.
You can also view it here:http://naijalowa.com/wp-content/uplo...In_Nigeria.pdf

[Monwowo]

Originally Posted by donne4real

The attached document contains basic information on the major mutual funds in Nigeria. Enjoy reading. Distribute and comment as well.
You can also view it here:http://naijalowa.com/wp-content/uplo...In_Nigeria.pdf

Nice info. I believed it was the discovery fund that declared dividend of N8.50and not Aggressive growth fund as contained in this mutual fund summary.

[nazzyon]

Why are the share Certificate of the Mutual funds sold around early this year and late last year not out yet?

BEDROCK & ANCHOR FUND - Cashcraft Asset Management


Zenith Ethical fund - Zenith

[docjuli]

May be because of banks involvement. Small boys might be forced out very soon with delays in getting approvals and reduction in brokerage pepper.

[nazzyon]

I don't get what you mean by "Small Boys", "Brokerage Pepper".

[dimeji_777]

Nigeria’s first gender specific N2.5 billion mutual fund (Women’s Investment Fund) has been introduced to the market through an initial public offer (IPO) at N100 per unit.

Chapel Hill Denham Management Limited, the asset management business of the Chapel HillDenham Group, noted that the offer opens September 1, 2008.

Mobolaji Balogun, group chief executive officer stated: "women are a vital force underpinning the growth of our nation, but the investment markets currently have limited offerings which cater to their special entrepreneurial promise or their unique investment preferences.

"With the Women’s Investment Fund (WIF), we believe we have bridged this gap somewhat by addressing female investors and entrepreneurs alike. "We are genuinely excited by the transformational potential of the Women’s Investment Fund, and are grateful for all the support we have already received from across the country," stated Balogun.
The WIF will invest in a diverse portfolio of assets including quoted equities and fixed income securities, real estate and private equity investments.

The exposure to real estate and private equity is notable in that it offers relatively unique benefits to unit-holders of the WIF, who would not otherwise be able to access these sectors due to high entry barriers (in real estate) or a lack of access and information (in private equity). Uniquely up to 30 percent of the fund’s assets will be invested in women owned businesses.

Businesses owned by women are one of the fastest growing segments of the economy and range across all sectors including manufacturing, services, real estate, hospitality, education and energy.

Commenting on the rationale of making these investments, Hewett Benson, managing director of Chapel Hill Denham Management said, "these businesses have generally operated with a high degree of efficiency and profitability, despite being starved of financial capital. Our strategy is to work with these entrepreneurs and enhance their businesses by injecting capital into their businesses." Benson further explained that, "these businesses have a demonstrated ability to provide superior returns to investors".
This pioneering product is the first product borne out of the business combination between ChapelHill Advisory Partners Limited and Denham Management Limited.

It harnesses the product development and investment management capacity of these two firms. Explaining the rationale for the fund, Kemi Adeosun, a director in the firm stated "For a number of years we have been hosting seminars for women as investors and teaching them how to plan their finances.
At these fora, we often came across women who were running fantastic mid tier businesses who required additional capital and guidance.

Marrying the two needs into a single broad product was a natural result of this experience". Commenting on why a fund should be targeted specifically at women, Benson explained that improving the financial position of women in society would have a multiplier effect on the economy as a whole.

[myinvestorsplace]

The IBTC Nigerian Equity Fund and IBTC Ethical Fund are Nigeria's known mutual funds and It is performing well even under the global recession.

[Michael]

Originally Posted by myinvestorsplace

The IBTC Nigerian Equity Fund and IBTC Ethical Fund are Nigeria's known mutual funds and It is performing well even under the global recession.

If you call a 13.68% loss in the IBTC Nigerian equity fund, and a 14.42% loss in the IBTC Ethical Fund performing well, then I agree with you. They definitely are beating the market which has dropped 24.03%.

[BizBlogged1]

The IBTC mutual funds are the best funds in the country at the moment. When searching for the right fund managers, You have to consider security before returns. Ther IBTC Equity Funds have an average returns of 57.7% since 1997 and IBTC is a world class Financial Institution with a capital base of over 35Billion Naira.

BizBlogged - Finance, Investment

[hispy99]

Finding survival options in mutual funds
By Layi Adeloye
Published: Sunday, 16 Nov 2008
With the advent of the global economic crunch, a lot more attention has been focused on financial and investment experts for possible solutions. More than before, a special guidance is expected by the investing public from this group, which is generally seen as the needed light out of the pervading confusion.

Undoubtedly, one area of great impact in the crisis has been investment in stocks. The natural thing is for investors to look up to other avenues, especially now that the volatility of shares is proving to be beyond a lay-man’s handling. One of such vehicles is mutual fund.

Experts define a mutual fund as just a convenient package or basket for a lot of investments, mainly stocks and bonds, which might otherwise be too complicated for the typical investor to manage. It refers to the way the masses invest in the stock market. Mutual funds are a cheap, easy and efficient way for people without a lot of money or financial experience to take advantage of stocks and bonds.

Nevertheless, as with every investment, there are risks involved in buying mutual funds. For instance, these investment vehicles can experience market fluctuations and sometimes provide returns below the overall market (as being recorded in the market now). Also, the advantages gained from mutual funds are not free, as many of them carry loads, annual expense fees and penalties for early withdrawal.

However, an overview of the various markets reveals that in terms of mass benefits, mutual funds stand to serve useful purposes for individual investors and the economy, especially in terms of market stability.

Experts say that it is much cheaper than thousands of investors hiring a broker to manage their money individually. A money manager and General Manager, Resort Investment Limited, Dr. Bayo Adebambo, says it allows investors, who start with a little bit of money to spread their investment around widely. That makes it much less risky than investing in one or two stocks.

Besides, he says their simplicity, alongside other attributes, provide great benefits to investors, especially those with limited knowledge, time or money. According to him, to this class and others disillusioned by the current crunch, investing in mutual funds as a varying option might be a right decision.

Another advantage of investing in mutual funds, according to Adebambo, lies in its ability to provide a platform for easy diversification of portfolio.

He notes that one rule of investing that both large and small investors should never trivialise is asset diversification, as it is key to risk management. It involves the mixing of investments within a portfolio. “For example, by choosing to buy stocks in the real estate sector and offsetting them with stocks in the industrial sector, you can reduce the impact of the performance of any one security on your entire portfolio. To achieve a truly diversified portfolio, you may have to buy stocks with different capitalisations from different industries and bonds having varying maturities from different issuers. For the individual investor, this can be quite costly,” he stresses.

By purchasing mutual funds, he says an investor is provided with the immediate benefit of instant diversification and asset allocation without the large amounts of cash needed to create individual portfolios. He, however, warns that simply purchasing one mutual fund might not give an investor adequate diversification. “Therefore, there is the need for the investor to check if the fund is sector or industry-specific. For example, investing in an oil and energy mutual fund might spread your money over 50 companies, but if energy prices fall, your portfolio will likely suffer,” he warns.

Another advantage of investing in mutual funds, according to experts, is their ability to avail investors with the benefit of economies of scale. According to Tolu Abifarin, the Managing Director and Chief Executive Officer, Reagan Investment Limited, an assets and resource management outfit, the easiest way to understand economies of scale is by thinking about volume discounts (as in some stores where the more of one product one buys, the cheaper that product becomes). For example, he says, “When you buy a dozen of apple, the price per apple is usually cheaper than buying a single one. This occurs also in the purchase and sale of securities. If you buy only one security at a time, the transaction fees will be relatively large.”

Mutual funds are able to take advantage of their large buying and selling size to reduce transaction costs for investors. Besides, when an investor buys a mutual fund, he is able to diversify without the numerous commission charges.

Another key factor in favour of mutual funds is its divisibility. Isidore Aruehru, a business advisor and Managing Director, Klint & Associates, a Lagos-based assets development firm, says in view of the fact that many investors do not usually have the exact sums of money to buy round lots of securities, investing through this medium affords such an investor the opportunity to purchase a lot of stocks or bonds, even with his limited capital. Normally, limited amounts like N40,000 or N50,000 may not be enough to buy stocks round and across varying securities, especially after the commissions and charges must have been deducted. “But an investor, through mutual funds, can buy such (several units of varying securities), even with same amount of N40,000 or N50,000. Instead of having to wait until you have enough money to buy higher-cost investments, you can get in right away with mutual funds,” he says. According to him, it helps to divide and spread your investment more than you, as an ordinary investor, would have been able to do. By doing this, it helps spread your gains as well as whittle down on your risk level.

Another advantage of mutual funds is their liquidity, which makes it easy to get in and out with relative ease- just like the regular stocks. An investor, according to Adebambo, can sell mutual funds’ units at any time (just with a little notice to the manager), as they are as liquid as regular stocks. “This liquidity factor and the smaller denominational nature of mutual funds provide investors with the ability to make periodic investments through monthly purchase plans, while taking advantage of dollar-cost averaging,” he says.

Perhaps, the biggest advantage of investing through mutual funds lies in their professional management. According to Abifarin, “When you buy a mutual fund, you are also choosing a professional money manager. This manager will use the money that you invest to buy and sell stocks that he or she has carefully researched into. Therefore, rather than having to engage in thorough research on every investment before deciding to buy or sell, there is the mutual fund’s money manager to handle it for you. Besides, the financial health of mutual funds is tied to the performance success of the various securities invested in, just like the fate of the investor.”

[nazzyon]

It is now getting close to a year since we bought the cashcraft's Mutual Fund PO (Anchor and Bedrock) and by January Zenith's Ethical fund IPO will also be a year.

When are we going to start reaping?