₦airaland Forum

Yem0350:
There was a staff (with required access control to make reversals) that tried to make a reversal of a double posting into a client account on 15th Oct., 2015. He inadvertently clicked and reversed the auto-posted annual charge that was posted on 1st Jan 2015 and this reversed ALL annual charges out of ALL clients accounts who had account with us as at 1st Jan 2015, which was the effective date of that posting.

When this error was noticed during routine reconciliations, a new auto-posting was made on 12th Jan 2016 with effective date of 1st Jan 2015 as necessary. However, this new entry debited ALL clients who have account with us as at 12th Jan, 2016. This effectively means that all clients that opened their account with us from 2nd Jan 2015 - 12 Jan 2016 would have been affected by a double posting of annual charges for 2015 because they weren't affected by the reversal error.

In correcting this for the clients affected (that is: those that opened account btw 2nd Jan 2015 - 12 Jan 2016) we can't make a simple auto-posting to correct this error (this would generate postings across all clients including those not affected), so we have to post individually a reversal into these affected accounts and this process started on the 13th Jan, 2016 and we expect it to be finalized by 22nd Jan 2016. Some clients affected might have seen these reversal postings, but all should see it by 23rd Jan 2016.

To further proof this was the case, if anybody has a friend who opened account with us before 1st January, 2015 ask him or her and he would tell you there was indeed a reversal of the 2015 annual charges which was then reposted on 15th Oct 2015. This was why the narration of the posting was clearly stated. Nobody commits fraud by stating clearly a narration like what was stated on the 15th Oct, 2015.

We are indeed very sorry for the late explanation and the inconvenience this must have caused you.

Regards,
CEO

Good explanation but yet again, it took too long which is typical of a company with bad customer service.

bigjay01:
have just noticed this (?dodgy) entry. I have always been charged the annual fee in October.

I opened my A/C in October 2014, was charged
2.5K in October 14
2.5K in October 15
2.5K in January 16

I'll get on the blower to them on Monday. Every little helps (as my favourite grocery chain would say)

I am laughing in Spanish...I knew there was something about these Morgan guys, just didn't understand their logic on these charges. Ethically, I find them not fit to handle my business.

yak:
yea, they did on 11th just that they put the openn date as same 11th whereas av paid and scanned the documents since 31st december 2015. thanks for asking

You should mail them about that, not right unless they are able to explain why to you and their explanation is acceptable. Although sending money from any bank to another on 31st December is a long thing... worst case scenario should be 4th of January sha.

oluwarantimi:
i currently use FBN and what i noticed about them is that they don't follow up unless you send them a mail requesting for whatever you want. Send them a mail.

Yak,

Have they contacted you?

ednut1:
It is only a matter of time that Tbill rates would rise as govt has to fund d budget with borrowings. Beware of Wonder banks and ponzi schemes

Just to add to the above.

When someone offers you a mouth watering deal here, check their previous posts...chances are that the account is new and the individual has been spewing the same shit everywhere.

That been said, there are businesses that can make you 100% on your money in a month but may not be sustainable each month. There is no limit to how much you can make in reality. A typical example is buying and selling...and you can be Dasuki's cousin and make 100000% for helping him polish his shoes. lol

kaze4blues:
hi all,
I am currently in my youth service. I started in November.
I intend to invest my nysc monthly allowance into the money market fund. I opened an account with uba for the allowance.

However, I am in doubt because of the present downturns in the sector.

I need expert advise on whether I should go ahead with the investment or I should retain the money in the savings account.

suggestions of any other investment opportunities that will best suit me will also be appreciated.

Thanks

Kaze,

Both have their pros and cons

1. Accessibility and Flexibility

Savings account is easily accessible and you can get your money as long as the bank is open, instantly as far as ATMs and POS are concerned. With a Money Market Fund (MMF), if you need to have your money, you need to wait for 1-3 business days depending on the company you choose. There is also a holding period of (1-3months depending on the fund).

2. Profitability

Savings account is at best 1/3 of what you will get if you put your money in MMF. MMFs revolve around something called MPR (you will have to do some work...read from page 1-20 on this thread, this is intentional) which is presently 11% at the moment. So for example if MPR is maintained at 11% for a whole year, the minimum stipulated by the CBN that a bank can give its’ customers as interest is 30% of MPR. If you catch my drift, you may be thinking minimum right, that means it can be more... Don't kid yourself...they will most likely give you the minimum which is 3.3% on your money for a year....so that’s like 0.275% per month. So you need to ask yourself why you would want to make 3.3% in a year as against 11% (both rates can go up and down but are directly proportional....one goes up, the other goes up, one goes down the other goes down).

3. Personality

The kind of person you are and your needs will determine how you intend to play and the balance between the two.

The idea of this post is to give you just enough information to be interested enough to dig deeper into the other pages, this is not in any way prescriptive, just descriptive. We all have different values and needs…All the best on your journey.

Please also note that I have used "Money Market Fund< in places where I should have just used Funds (there are quite a number of them),...again when you read the rest, you will get my point.

ernie4life:
definitely it will, savings account is a loss even you put into calculation the inflation effect

hahahahah! Spot on!

Thats like comparing sleep and death my brother.

for MMF you may be lucky to get the value of MPR which is 11% at the moment but a savings account is a minimum of 30% of MPR....banks go for the minimum. if you are extremely connected, you get 35-40% of MPR.

wisemanj:
hi please if I invest hundred thousand what will be the dividence in 3month

At a conservative rate of 10% per annum averagely, you will get 2500 naira.

Average rate: 10
Number of months in a year: 12
Amount: 100,000
months to calculate: 3

Dividend = {[(Average Rate/12)*months to calculate]%/100%}*amount invested


Dividend = {[(10/12)*3]%/100%}*100,000 = 2,500

Without a doubt the rates may vary from month to month but your final figure will be about that based on the present economic climate.
A month ago, I would have used 12% as the average rate.

elpiro:
@ all,

Having read about index funds, are there index funds available for one to invest in? what are the requirements?
Paitently Awaiting response from the ogas

Chief,

Please read from page 1 to 20. You will be able to take a decision after that..enjoy

For those in the Diaspora seeking investments back home.


https://www.nairaland.com/2791408/meristem-diaspora-trust

For those that wonder how this could have happened, you probably have not seen someone whose car was stolen and he bent down under another person's car looking for it, or looking in the gutter. We react to pressure differently...and you can blame a man for not acting well under pressure but please show some compassion.

The initial email was correct but the bank staff was on leave...(first problem). That puts pressure on you as people are waiting for salaries including you. The bank should also have made sure emails were forwarded from the away staff account to the person relieving her or emails sent to a group that could relieve each other (2nd problem). Unfortunately, when the bank realized their own mistake of not providing effective cover, they asked to be bailed out by resending the email to another person (3rd problem, they are now under pressure). OP in good faith (hey he wants his salary too, so issues are compounded) looked for a previous email without checking the date it was sent or making sure sent email folder was updated (4th problem, when things want to go wrong...they will really go wrong). Bank on receiving the email and knowing they have been receiving such from the person didn't do a check (5th problem, there is a reason why we have a checklist)

I have written the above because most mistakes follow the same path...you can blame the OP for his/her part in it but it extends beyond that. I also think he/she did the right thing apologizing and please you do not need to degrade yourself because you made a mistake…accepting your part in the mistake is good but for your self-confidence, don’t go writing emotional appealing letters.

A job is a means to an end, not an end in itself.

I have intentionally decided not to get into the attitude and politics that may be in the play in the office but I will comment on one thing. If you shout at me, I will shut you up, I don't care if you are Dangote.

For those who feel this fine is too much, they should ask MTN why they agreed to it in the first place. It is not even a case of ignorance, it was clearly a case of ...this is Nigeria, what can they do?

MTN took a calculated risk not to disconnect those lines, not because they cared for the owners but because they looked at the pros and cons...how much will we lose if we disconnect these lines, what is the worst that could happen if we are fined based on an amount they already knew of (all the regulators knew how much per sim they will be required to pay). Banks, Tobacco, Alcohol, even Pharmacitical companies do this all the time, they weigh the fine against the gain...maybe it just back fired this time....who knows maybe MTN still made money. You cannot not really tell unless you see the figures.

When you commit the crime, be prepared to do the time.

I am not happy the fine was reduced, they should have been made to pay the full amount.

We want a better country but I don't think we are ready to make the sacrifices that are necessary.

I have an MTN line and it is the best network I would trust when travelling to remote places in naija not to talk of outside the country...they are everywhere, not great service but I can manage. However, MTN steals from us everyday.

For those that say MTN Nigeria is a SouthAfrican company, you are not entirely correct. MTN Nigeria is a Nigerian company and has Nigerian shareholders although the parent company also has interests in form of shares. They might not be listed on the NSE, but they are partially owned by Nigerians.

taiwoliu:
if, i understand the conversation well, the more liquidity in circulation, the higher the inflation?
if that be the case, why can't our government go on spending-fast (awe owo)?

Ha! Can u handle it?

ernie4life:
Yea in terms of yield you are right, 
Carpenter have you ever wondered why we saw such high yields this year compared to other years? 
What happened this year that has not happened in a while?
MPR!
Late last year MPR was adjusted from 12% which it has been in quite a long time to 13% ‎

Funny you mentioned that, I was thinking about the same thing yesterday. Maybe the govt was spending a lot and it was a way of mopping up liquidity cos inflation was the lowest in naija for a long time around the same time.

ernie4life:
Today is the last day of November. as we step into the last month of the year here is something to take note of,

Yields on most funds are always on the down side around this time, most analyst attribute this to the number of people exiting the funds at this time in other to meet up with festive seasons expenditure(most people use mutual funds as a means of savings rather than investment), this number of people are usually significant that they can mount pressure on the market leading to fall in yields, this doesn't happen only to mutual funds in also affects the stock market.
judging that we have had a not too good year I see the likely hood of this being more pronounced accompanied with the new monetary adjustment.

my opinion.

Hmmm interesting points raised...IMO this is the best year since I have been doing mutual funds (started 2012)...I saw a couple of 15%, a few 14% and more 13% coupled with inflation in single digits.

mercylicious:
@ carpenter and feel among,
I see una hand oooo.

Tb down, MF down, nse down ,everything is going down. Real estate is the next thing if u have d liver.

Na Ernie house we dey o! The guy provides accommodation and feeding...

Mercylicious...we no know say you dey reach this side.

This is for we the conservative ones, we may not be making much....but we are not loosing either.

As for NSE, I maintain it is Sales!Sales!! Sales!!! for investors, you get a good bargain.

Real-Estate too hot to touch...

9janinja:
bro. pls give me online biz ideas ........thanks bro

I don't know of any online business bro, am sure there will be a few threads on nairaland with people familiar with such.

Although, you may want to think of this as partly online too, I have not been to any of the mutual fund offices before, I send them money via internet banking, I get my redemption through the same mode, I never see what they sell...online business too if you ask me

ednut1:
Stanbic MMF-11.08%, ARM MMF-11.55% and FBN MMF-10.84%

It will go lower as current investments reach their maturity and new ones are loaded.

Again don't be perturbed, see it at a savings account that gives you at least tripple what a bank will give you...if you have a business that yields more and your money will be relatively safe...jump ship.

feelamong:
Stock market is not for the lily livered op!

you can see your funds eroded if care is not taken...

like they say its a Casino Royale out there in the NSE...

dont put any short term funds there and make sure its the sort of funds you can afford to loose...

Me I play the NSE but i will rather earn bel;ow inflation rates and be sure my funds are safe than loose all in the quest for higher yields..

BTW i have also decided to go into farming! at least we can apply for the low interest rates to expand...

Abeg where your farm dey make i come buy one beside you...I want to grow gold

feelamong:
I saw this coming!!

Since the Mutual funds are all invested in FGN Bonds and TBills; with the drop in the rates and Yields...it was only a matter of time!

Clearly the days of high yields in financial investments is over!

make everyone go invest their money for real business or farms! or be ready to receive only 3% returns p.a

heheheheh....it cannot be that bad with MPR at 11% a savings account will earn you a minimum of 3.3%p.a.

We cannot all invest "real businesses" directly but you do make a valid point. Inflation values will most likely come down also, so we should still be doing better than inflation.

As received...

............................................................................................................................................................................


25 November, 2015



Dear Valued Customer,



STATE OF THE MARKETS



Greetings from your investment management team at FBN Capital Asset Management.



Over the last 8 weeks, from 23 September, you may have noticed that market interest rates, in this case measured by Treasury Bills, FGN Bonds and bank tenured deposits have declined considerably. For example when the fixed income markets closed yesterday 24 November, a 364 day Treasury Bills yield to maturity had declined from about 15% to about 7%, the yield to maturity on long-dated bonds, e.g. the FGN 2024 from 15% to 11% and bank tenured deposits from about 13% to about 5%. These are a selection of fixed income instruments our mutual funds invest in to deliver on the investment objective of each respective fund. The Monetary Policy Committee (MPC) at the conclusion of its meeting yesterday 24 November, 2015 has now also reduced the Monetary Policy Rate (MPR) from 13% to 11% signaling its desire to keep rates low and stimulate the economy. The equity market has fared no better haven fallen 20.37% year to date.



The consequence of all these is that as the pool of fixed income investments in each portfolio matures and we get new inflows into the funds, we invest and reinvest at these lower market rates which impact the returns on the fund. As you have entrusted us with investing your savings in our mutual funds, please be rest assured that we at FBN Capital Asset Management remain unflinchingly committed to delivering competitive returns to you and we will continue to use our skills and in-house expertise to source for and invest in assets for each fund that deliver returns above market expectations and grow your savings and wealth.



Please look out for the next factsheet of each product, delivered to your inbox in the first week of next month which will give you more information of market conditions and returns on each fund.



Once again, we thank you for choosing FBN Capital Asset Management and our products.

Yours sincerely,



Michael Oyebola

Managing Director / Chief Investment Officer

Signed

taiwoliu:
really appreciate ur response. I had whatsapp in mind as well and it's cos I v personal questions I can't ask here. Your number isn't there but I'll send an email that contains mine.

No worries then, well noted and you are right about personal questions...better to be kept personal.

Once I receive your email, I will send my number across.

taiwoliu:
well done boss.... i just need clarification on some things i noticed while going through FBN MMF History chart.
I noticed some days were missing and not accounted for,i tried confirming if those days were declared holidays but figured they weren't. I know NSE doesn't trade on weekends but what about other days that are missing from the chart? Please can you help clarify this? and i wouldn't mind having your mobile contacts as well. if its ok by u,i'll request it thru PM

@Earnie...... thanks for your time

I noticed the same but because I work with the average for the year I don't bother much about daily prices, I just look at it once in a blue moon (I think it is fair to say we will be around 12.5-13% for 2015 till date). You could write them to explain the omissions, maybe it is an oversight.

My phones are roaming so I will not pick up unless it is a call from a family member. I believe we have exchanged emails and my number should be on my contact details (Watsapp only abeg). I also think it is nice when if all questions are asked here and when I make a mistake, someone can correct me instead of me passing across my version of what it is...

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Johnrake69:
Boss will find time and give a comprehensive info about the rest. Thanks

ha! no o

That is all I need to know my brother. The rest is left for the finance guys to explain.

I keep it simple, I worry about what worries me, nothing more.

The lending rate reduced means I get less yield from my investments in MMF but could be great news for the country if we take advantage of it. In simple words everything Ernie wrote above was done to make sure money is available in the economy. Lendings rates reduced, cash reserve reduced.

Edited: This is probably one of those times when my eyes were seeing something but my head was somewhere else, and my hands were in their own world. Got to be able to laugh at yourself for messing up [color=#000099][color=#000099][/color][font=Lucida Sans Unicode]

Johnrake69:
Boss will find time and give a comprehensive info about the rest. Thanks

ha! no o

That is all I need to know my brother. The rest is left for the finance guys to explain.

I keep it simple, I worry about what worries me, nothing more.

The lending rate reduced means I get less yield from my investments in MMF but could be great news for the country if we take advantage of it. In simple words everything Ernie wrote above was done to make sure money is available in the economy. Lendings rates reduced, cash reserve reduced.

Edited: This is probably one of those times when my eyes were seeing something but my head was somewhere else, and my hands were in their own world. Got to be able to laugh at yourself for messing up [/color][color=#000099][font=Lucida Sans Unicode][/font]

Johnrake69:
Boss will find time and give a comprehensive info about the rest. Thanks

ha! no o

That is all I need to know my brother. The rest is left for the finance guys to explain.

I keep it simple, I worry about what worries me, nothing more.

The lending rate reduced means I get less yield from my investments in MMF but could be great news for the country if we take advantage of it. In simple words everything Ernie wrote above was done to make sure money is available in the economy. Lendings rates reduced, cash reserve reduced.

Edited: This is probably one of those times when my eyes were seeing something but my head was somewhere else, and my hands were in their own world. Got to be able to laugh at yourself for messing up

yak:
hello fellow Nairalanders, wat is d implication of this reduction of MPR on mutual fund investment? oga carpenter n co reason am

The rates we presently enjoy will go further down but then we hope that will kick start the economy as borrowing will be a lot cheaper.

ernie4life:
Add to what carpenter has said, MPR is the highest rate banks can give you on your deposit, currently it's 13%.

when the rates are reduced the interest become less attractive to investors.

so when CAN feels there is too much money in circulation they simply increase the MPR leaning to more people giving banks there money in form of fixed deposit etc.

The MPC meeting is on-going and attached is what some analysts think we should expect.

An interesting read

http://www.thesimpledollar.com/20-common-investment-mistakes-and-five-simple-steps-to-avoid-them/

dopedude:
please I don't understand this. how much will my earning be if I invest 500k for 3 months. thanks

on 500k, you will get around 13,750 if the average rate for the 3 months is around 11%.

Rates are dropping steadily on FBN MMF...looks like we might be heading to 10%. We don't see 12% and above anymore. Still in the 11% but still going...[code][/code] "it's about to go down low"

http://www.fbnquest.com/asset-management/fund-prices/mutual-funds-yield-history/historic-yield---november-2015

dopedude:
please I don't understand the N100 thing. is that the processing fee or what

Oga Sir,

Please ensure you read page 1-18 and you know what you are getting into.

Therein, you will find all the answers. You can also visit the links in the post you quoted for reliable information from the fund managers.

100 naira is the value of a unit of the fund, no processing or licensing fee is payable.

ukay2:
Please my oga carpenter,

Explain in clear terms the meaning of MPR and how it affects money market and bank interest rates.

Thanks

Am sure somone else will bring forth a better explanation later.

In layman terms, the MPR (Monetary Policy Rate) is a rate set by the CBN to control money in circulation. To control inflation and deflation.

I give an example, if the MPR is raised, then people want to invest cause they make more money. So money available to be spent is reduced, lending rates also go up. If MPR is reduced, then you rethink your investments and might decide to spend money , also lending rates are reduced...so people have access to more "cheap" money.