[s]Nigeria's Mutual Fund Asset Climbs To An All Time High[/s]

The assets under management (AUM) of the Nigerian mutual fund (MF) industry increased 8.45% or about N14.9 billion to a record N190.7 billion in the week ending April 2nd 2015, according to NAV Summary report released by the SEC. The last time the industry's AUM hit the N190 billion mark was on October 10th 2014 when the NAV stood at N190.3 billion. The increase was primarily due to inflows into various fund structures within the year.
Together, the mutual funds generated an estimated N23.96 billion inflows and N10.24 billion out flows from January through April 2nd 2015. This net inflow of N13.7 billion coupled with total year to date (YTD) mark-to-market gains of N1.15 billion helped the AUM increase to the all time high of N190.7 billion having ended the FY 2014 with total AUM of N175.8 billion.
The increasing flow into the mutual fund industry is a demonstration of increasing investor appetite arising from the strong prospect for political stability in the country and the palpable victories over terrorism.
Stanbic IBTC Asset Management Ltd continues to be the largest fund manager, with its AUM rising to N56.6 billion while FSDH takes the second spot with AUM of N34.6 billion and FBN Capital Asset Management Ltd occupying the third position with AUM of N33.2 billion. With that, the three largest fund managers are managing 65.1% of the total mutual fund AUM as at April 2nd 2015.
Fund specific analysis shows that Stanbic IBTC Money Market Fund retains its position as the biggest fund by asset with AUM of N35.9 billion, with UPDC Real Estate Investment Trust Fund taking the second position with AUM of N30.7 billion while FBN Money Market Fund came third with AUM of N24 billion.

Future Growth
As Investors, who withdrew money from the schemes fearing a catastrophic presidential election and those who have adopted a wait and see attitude begin to reinvest these funds , much higher inflows may be noticed ultimately leading to further positive growth in the industry.
Additionally, with improvement in macroeconomic management, enduring political stability as well as stability in oil prices, the prospect for growth will become stronger for the Mutual Fund Industry. All that the industry needs to keep the momentum going is increased awareness, and availability of data and information.

ernie4life:

am still on stanbic ibtc, when am done I will start arm, but anybody with experience on the two can help

Please with 20k can I start a mutual fund investment. I will be grateful if u will put me through on how to start

Uchan4u:


Please with 20k can I start a mutual fund investment. I will be grateful if u will put me through on how to start

yes with 20k you could start a mutual fund investment, I will recommend you consider the mutual funds offered by first bank capital, @carpenter please help him out, am sure you have a first hand experience which will be highly appreciated. thanks

ernie4life:


yes with 20k you could start a mutual fund investment, I will recommend you consider the mutual funds offered by first bank capital, @carpenter please help him out, am sure you have a first hand experience which will be highly appreciated. thanks

Thanks bro but I will need more info on how to get started. I don't really know much about mutual fund... I just want to experiment with 20k. please help

Uchan4u:


Thanks bro but I will need more info on how to get started. I don't really know much about mutual fund... I just want to experiment with 20k. please help

Oga Sir,

Before you proceed...please read page 1-9.

All the information you need to get started is here. I think you will be able to move from crawling to walking much faster if you have an idea what you are getting into. I wish you all the best in your quest for education.

carpenter:


Oga Sir,

Before you proceed...please read page 1-9.

All the information you need to get started is here. I think you will be able to move from crawling to walking much faster if you have an idea what you are getting into. I wish you all the best in your quest for education.

thanks for ur advice but I wish someone could give me a summary of what has been discussed so far

as the stock market is bouncing back, equity based mutual funds are appreciating.

let's keep watching

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

3 months after starting the whole MMF process, I got my first quarterly payout of 2800 naira . I had to re-invest the tashere money. I'm now thinking about bond funds because MMF just cover treasury bills and commercial papers while bond funds go a lot farther.
Any thots? @carpenter @ernie4life and all lovers of legit money

igboboy3:



3 months after starting the whole MMF process, I got my first quarterly payout of 2800 naira . I had to re-invest the tashere money. I'm now thinking about bond funds because MMF just cover treasury bills and commercial papers while bond funds go a lot farther.
Any thots? @carpenter @ernie4life and all lovers of legit money

the choice is yours, it's all about preference, why not diversify! that's what I will advice so that you can benefit from both sides

I am thinkibg of liquidating my Kgif with invest1. u beg them for everything even my statement. their rates are not expressly stated. All I smell from calc is dat its never gone past 13%.

Bureacacy of liquidation sef is another ish. I was told I must submit hard copy of my e-dividend. I barely av that time.


I am eyeing ARM mmf come August

drdams:
I am thinkibg of liquidating my Kgif with invest1. u beg them for everything even my statement. their rates are not expressly stated. All I smell from calc is dat its never gone past 13%.

Bureacacy of liquidation sef is another ish. I was told I must submit hard copy of my e-dividend. I barely av that time.


I am eyeing ARM mmf come August

like you already know the rate for KGIF is tired to MPR, so long as MPR is currently at 13% then your KGIF will keep running at 13%.

it's your money so you are free to invest it where ever the yield will be more appealing to you, ARM funds have been quite stable in terms of yield.

If you are basing your decision solely on yield, the FBN MM is your best bet at 13.71% currently

ok. so which rates are other mmf tied to?

drdams:
ok. so which rates are other mmf tied to?

wt lil knowledge, I tink oda rates run flexible rate I.e dey ain't tied to any stable rate lyk kgif. That's y dey r less guaranteed. Over to d ogas of d forum

taiwoliu:
wt lil knowledge, I tink oda rates run flexible rate I.e dey ain't tied to any stable rate lyk kgif. That's y dey r less guaranteed. Over to d ogas of d forum

You are correct...

Both models have their pros and cons and remember with KGIF, your principal is guaranteed but you are locked into the MPR which isn't bad. 13% is more than fair I tell you and they also claim if they make more money you will get a bonus.

With MMF and few others, they probably calculate the average of how all the holdings did for a day and that is what gives them the yield for that day.The average of summations for all the days of a month becomes the yield for the month and it goes on... or they may be running some models that I know nothing about.

A friendly advice, unless you investing a lot of money, don't worry too much about the less than 1% differences, they only make a lot of sense when the capital is much. Instead, focus on which one suits you better and invest today...time wasted overthinking investments can cost you way more that what you gain by trying to pick the best one based on yields.

drdams:
I am thinkibg of liquidating my Kgif with invest1. u beg them for everything even my statement. their rates are not expressly stated. All I smell from calc is dat its never gone past 13%.

Bureacacy of liquidation sef is another ish. I was told I must submit hard copy of my e-dividend. I barely av that time.


I am eyeing ARM mmf come August

Oga 13% is good o! Do you have an idea what some people have suffered in the stock market? -25% to -50% is not too strange...if you can avearge 8% profit on the stock market, you are seen as a mini god. I hate to think I am investing my money with a company that is not customer centric though...so maybe they might have some work to do there.

Back to you, you have a lot of work to do also...you have invested money...now you need to know what your money is doing and from your statement above, you are doing badly at that. Ernie rings that in regualary here...infact i think another name for KGIF is MPR

Going forward, send them a nice email about the challenges you have with their requirements, they might be able to offer you a way out of the wahala. Hard copies of E-dividends seems too old skool though.

carpenter:


You are correct...

Both models have their pros and cons and remember with KGIF, your principal is guaranteed but you are locked into the MPR which isn't bad. 13% is more than fair I tell you and they also claim if they make more money you will get a bonus.

With MMF and few others, they probably calculate the average of how all the holdings did for a day and that is what gives them the yield for that day.The average of summations for all the days of a month becomes the yield for the month and it goes on... or they may be running some models that I know nothing about.

A friendly advice, unless you investing a lot of money, don't worry too much about the less than 1% differences, they only make a lot of sense when the capital is much. Instead, focus on which one suits you better and invest today...time wasted overthinking investments can cost you way more that what you gain by trying to pick the best one based on yields.

tnx boss...... Always gud to v u arnd

carpenter:


Oga 13% is good o! Do you have an idea what some people have suffered in the stock market? -25% to -50% is not too strange...if you can avearge 8% profit on the stock market, you are seen as a mini god. I hate to think I am investing my money with a company that is not customer centric though...so maybe they might have some work to do there.

Back to you, you have a lot of work to do also...you have invested money...now you need to know what your money is doing and from your statement above, you are doing badly at that. Ernie rings that in regualary here...infact i think another name for KGIF is MPR

Going forward, send them a nice email about the challenges you have with their requirements, they might be able to offer you a way out of the wahala. Hard copies of E-dividends seems too old skool though.

thanks @carpenter

the issue of hard copy dividend has been settled long ago, we have an option where clients fill an e-dividend form instructing us to pay all dividendinto their account. we are even looking at scrapping out certificates to make the fund more flexible for liquidation.

I have been trying to convince a friend who works with ARM to join this forum so we could discuss about their funds but he seems reluctant, I will keep trying, am also looking at getting someone from FBN capital so we could also discuss about there funds, even Stanbic!!!!!!!

ernie4life:
I have been trying to convince a friend who works with ARM to join this forum so we could discuss about their funds but he seems reluctant, I will keep trying, am also looking at getting someone from FBN capital so we could also discuss about there funds, even Stanbic!!!!!!!

It is difficult sometimes Ernie since they are not authorised to speak on behalf of the company and some people might take their words out of context. Not everyone can take the challenge as you have.

ernie4life:


thanks @carpenter

the issue of hard copy dividend has been settled long ago, we have an option where clients fill an e-dividend form instructing us to pay all dividendinto their account. we are even looking at scrapping out certificates to make the fund more flexible for liquidation.

Great!

I really don't see the need of hard copy certificates and dividends also, not in this age.

UPDC REITs closed their books for dividends on the 22nd of April, I got mine in my account on the 28th of April (E-Dividend)....6 days, that it what we want not some long thing before certificates and dividends are delivered or lost in between. FBNCapital i think still does certificates for some of their products but i just informed my contact person that i am trying to dematerialise certificates ...i don't need to add more, they found a way around it and I dont have paper certificates.

In the end, the managers want our money but before we give them just like they have conditions, we should give them some conditions also. Of course we should also try to be reasonable in our demands sha. Once you are in, it may a little difficult ...

ernie4life:
I have been trying to convince a friend who works with ARM to join this forum so we could discuss about their funds but he seems reluctant, I will keep trying, am also looking at getting someone from FBN capital so we could also discuss about there funds, even Stanbic!!!!!!!

not an easy thing to do, ur words maybe be misquoted and u land ur coy in deep trouble.

ednut1:
not an easy thing to do, ur words maybe be misquoted and u land ur coy in deep trouble.

Hmmm I find it hard to believe, I mean no one is saying any sensitive information we are just here to gain more knowledge about the product, the more knowledge people have about your product the more likely the would patronise you. well that's my view and everything I say here I can comfortably defend.

[quote author=carpenter post=33529554]

Naijainvestor,

I think institutional investors will benefit more from this. Some of us dont even make enough profit every month to buy this

So a call to all the big players...Qualitative Analysis on offer

[/quote

Thanks for your advise, I am working on a model that will make the site accesible to all at minimal cost

I found this interesting and since he talked about index funds, it even became more interesting.

http://www.thesimpledollar.com/how-were-investing-for-financial-independence/

Seems ARM Money market offers higher interest dan others. I jst check their price history.