FBN Ivory Fund

[chrisekpo]

this is the latest from the stables of First Bank. Works like FBN Heritage fund, though its area of focus is bonds, give a least rate of return of 12.5% or 6% + MPR within a period of 1 year (guess) and a minimum deposit or investment of 100K and multiples of 10K. am confused.

[knightofdelta]

Originally Posted by chrisekpo

this is the latest from the stables of First Bank. Works like FBN Heritage fund, though its area of focus is bonds, give a least rate of return of 12.5% or 6% + MPR within a period of 1 year (guess) and a minimum deposit or investment of 100K and multiples of 10K. am confused.

The current MPR is 6%, that means if you invest you will get a coupon payment of the lower of MPR + 6% (=12%) or straight 12.5%.

[mymoni]

Pls what does MPR mean? Can u throw more light on the investment opportunity? I think I'm intereted in it?

[knightofdelta]

Originally Posted by mymoni

Pls what does MPR mean? Can u throw more light on the investment opportunity? I think I'm intereted in it?

MPR is monetary policy rate and that is the guideline rate at which the CBN does transactions with the banks...

[horlads]

Originally Posted by mymoni

Pls what does MPR mean? Can u throw more light on the investment opportunity? I think I'm intereted in it?

it is a benchmark interest rate usually set by the Central Bank of a country...Monetary Policy Rate in full. i guess the big guns can shed more light.

[chrisekpo]

Originally Posted by knightofdelta

The current MPR is 6%, that means if you invest you will get a coupon payment of the lower of MPR + 6% (=12%) or straight 12.5%.

am so sorry, its MPR + 4% or 12.5% (the higher of the two). A minimum investment of 100,000 and multiples of 25,000 and an interest on excess income made (something like profit sharing). looks okay, but am ..............

[knightofdelta]

Originally Posted by chrisekpo

am so sorry, its MPR + 4% or 12.5% (the higher of the two). A minimum investment of 100,000 and multiples of 25,000 and an interest on excess income made (something like profit sharing). looks okay, but am ..............

The investment is not good enough if you are sure of getting a return less than the inflation rate. You will be earning a negative real return. Inflation is currently 11% and you are sure of getting 10% return...