₦airaland Forum

ernie4life:
there is going to be an MPC meeting and from the look of things MPR will be adjusted, this will have an impact on the yields in some money market instruments.

Right now the priority on every investors mind should be to stay afloat, don't be to eager to make excess profit/ interest, aim for anything above the inflation rate while we wait for an economic turn around, security of capital should also be considered.

Note: my opinion

Gbabeski!

On a side note, for those who have money in bank accounts. The MPR also determines the interest rate your banks offer you. Interest rates should be a minimum of 30% of the MPR and mosts banks will offer the minimum.

ernie4life:
nice

Ernie this oga don run o!

We dey update now....

bigass:
hahahaha. I was on 4 different mountains,went to redeem camp praying against monumental loss. But it didn't work!!!. Until I heard God's voice saying. .."My Daughter, stock market is not for the faint hearted and it is one affairs of men I do not interfere".

So right now I am looking for money doublers to help me reduce my loss

Big Ass with Big sense of humour...I like

If one cannot laugh at one's self in this economy, person go just get hbp for nothing.

ukay2:
Thanks my oga Carpenter...

My new stockbroker... Morgan capital... Wants to open a new CSCS account but with same CHN number...I don't know the implications of this action?

I don't think you need to worry about that. That is your clearing house number and ties you to your broker I believe, wondering why they would want to use the same CHN. It should be the other way round. A new CHN and the same CSCS number.

Edited***

I think the above from Angry Bull's explanation fits it...The CHN number should be the same.

ukay2:
Please my oga/bnsitl, I am still expecting the answers to these question..

This is based on personal experience.

1. If you gave your CSCS number to the new broker, stocks with the different brokers will be in the same CSCS account. If you did not and they have no way of knowing it is the same person (sometimes records might show you are the same person, maybe they can match addresses and other details you filled), they will open another CSCS account for you.

2. Dividends and bonuses will be treated as the registrar deems fit. I have two accounts with the same broker and...

a. FBN shares are treated by FirstRegistrars seperately and I receive 2 dividend warrants, bonuses accrued to each account based on number of units is deposited separately.

b. Julius Berger (GTL registrars), recognises these shares are owned by the same person. I receive a combined divided warrant and bonus is lumped in one of the accounts.

c. I have shares of the same company with 2 different brokers, in fact one has less than 800 units. I receive a combined dividend and bonuses in only one of the accounts.

I am okay with any approach as long as all that is due to me gets to me, so I have not bothered to complain to any of them.


3. If I were you, I will fill all the units I have and indicate with which stock broker...you can also ask for clarification when submitting the form. It is the same registrar so they can work things out however you want them.

4. For simplicity, better to keep one CSCS number but no harm in having two also if you want the two accounts separate.

oluwarantimi:
hello everyone,
i already started with fbn fixed income fund before i read this thread. does anyone know if its possible to switch my funds from the fbn fixed income fund to fbn money market fund?

Yes you could switch but wondering why you want to?

From my records, Fixed Income is doing better than MMF and better for medium to long term investments.

If you would still like to go ahead (since I have no idea of your personal situation), I would advice you wait the minimum holding period of 3 month (to avoid the penalty on withdrawal, minimum of 3 months holding period) then you can fill a redemption form and indicate you want to invest the money in MMF.

I used to have 60% of my money in MMF and 20% in Fixed and remaining 20% in Heritage (no reason for the ratio i just felt more comfortable with MMF and wanted to try my hands on the other two). At the moment, I only have 40% in MMF and the remainder shared between Fixed and Heritage.

taiwoliu:
issokay... can u gv recommendations on how to gather d knowledge?

1. You can register at www.fsdhgroup.com for daily stock updates and reports
2. You can also view reports at http://cowryasset.com/asset/content.php?page=report
3. Various news sites

Johnrake69:
Bros respect... I have actually been following your posts for over a year now and I must say you know your onions.

My brother, this is my school also, plus a few personal experiences. Ernie is the guy with the inside information and I am lucky to be on the outside so we usually get best of both worlds by chatting about stuff. Of course other people also contribute and we all learn from each other. We are lucky this thread was created.

taiwoliu:
how do u come about ds economic figures and stats? Ddnt pay much attention in economics class.

hehe

I read most of them up and they help me form my opinions. The figures change from time to time, it is just good to have a general idea. No biggie really

feelamong:
with the way all money market instruments and bank placements are falling...

isnt this also bound to fall?

Without a doubt it is falling ...

Unsually, everything does not fall at the same time in an economy, there are always opportunities to make some head way in a diversified portfolio. However, I am just an investor and I judge by what I get...once the yields are not favourable, I move on to something else.As long as I am doing better than inflation am happy, that is the new standard for me.

feelamong:
what are the instruments in this mixture? would like to look at each of them and their present individual yields in this bad market

Available at the same link above and a snapshot attached.

I reckon it is a broad range since the percentages even overlap.

ernie4life:
Tbills rage for today's auction 4/09/2015‎
‎
91days= 6.35%    -    6.55%‎
180days= 8.30%   -   9.00%
364days=   9.00%   - 9.50%

Tooooooo low way below inflation rate 9.4%

This has a significant effect on every MMF that does not have a guaranteed interest because it means the yeild on those funds is also going to fall, generally interest rates have fallen. Interest rate and stock market performance are inversely related, this means when interest rate increases, stocks will fall and when interest rate reduces stock prices increase. It's simple logic when rates are not worth relaxing I will rather take the risk at the big ones. And as more people move into stock demand increases leading to and increase in price of stocks.

Yes o! Without doubt it will affect our yields. Infact e don affect sef...FBN MMF has been around 12.x% for some days now...we don't see our regular 13.x or occasional 14.X% anymore.

However, I still see us doing better than the rates above because MMF is a mixture of instruments. This is the beauty of a pool of funds. For some reason I have always loved to benchmark against 12% for my calculation, maybe because it is easier with 12 months in year...I just look forward to 1% every month. Even with Inflation at above 9%, you still make a respectable 2-2.5%...not bad for passive income and it ensures you are not losing money to inflation.

http://www.fbnquest.com/asset-management/our-products/mutual-funds/fbn-money-market-fund

taiwoliu:
u r correct on d profit payment, i bought into it around april nd my interests v neva failed to b paid. but my question is if d capital nd interest accrued is automatically rolled over or paid back to d investor at year end?

oh I see! I missed your question the last time then...strange the answer still fits though.

taiwoliu:
really appreciate d response. It is my first yr in it, nd as DEC draws close I wanted to knw if I'll v to inform b4 withdrawal or it'll b automatically rolled over into January. I think its d latter from your explanation.

Cc Ernie4life

I am interested to know when you bought into it.

FBN MMF is paid quartely to me during the following months January,April,July,and October (automatically rolled -over).

anangboy:
Please, the FBN Fixed Income Fund as explained by you has "No guaranteed income". Does this imply that funds here are invested into the uncertain capital market? If so, how is it still called Fixed Income? Please, do you know any notable investment house that offers above 12% returns on treasury bills investment? Thank you.

I sincerely do not know how they came about that name cos the price is not fixed, neither is the dividends.

This is from the factsheet "Past performance is not a guide to the future. The price of investments and the income
from them may fall as well as rise and investors may not get back the full amount invested"

I think you can put your money on FBN MMF and go to sleep...you may even get better than that 12%.

ernie4life:
I think you have to give instructions for that

Yeap... Profit is paid every quarter or you can elect to re-invest.

I re-invest all the time, when i need money, i just redeem some units.

sammily:
Thanks Oga Carpenter, I may have been off with my calculations, will try it out again. please I would like you to enlighten me on some things on these mutual fund, I was informed that my principal is safe for the duration of the investment, that may seem correct for MMF since the price is constant at N100 but I notice that the price of the FIF fluctuates, if the price falls to say N0 tomorrow, will I loose just the yield or both yield and principal.

Also, since TB rates are not looking encouraging lately, I may probably continue with it but which of the mutual fund (MMF of FIF) would you advise one invest more into for the mean time, my main consideration is low/zero risk investment.

Thank you again sir, will appreciate your response.

God bless...

Nah..you may indeed be right also. I calculate based on how much i invested and how much i have gained theoretically. The fund manager will also calculate this differently...it depends on what time horizon we are looking at and hw much we paid for it. For clarity, someone that bought Transcorp at 11 naira is unhappy it is barely above 2naira, someone that bought at 50k in is overly happy with his investments.


The funds are classified based on what they invest in

1. MMF is like a savings account basically but with a better yield and the fund manager tries to maintain it at 100 Naira, dividend payment may flutter from time to time. It invests in stable instruments and the risk to your money is low.

Why invest? It has a low entry level (5K). The holding period is one month (if you withdraw before the end of one month, you pay a penalty).

2. FIF and HF have instruments whose nature are not stable in their composition which go up and down also hence the reason for the value fluctuating.

Why invest? You can make more money in FIF and HY than MMF hypothetically but you can also lose more...they are of medium risk to high risk. As you can see above in my earlier post, MMF would make 13-14% this year but FIF has already made 16.85% (my figure which includes dividend compounded) which is the positive side of the equation, we could also be on the negative side of it.

If you are looking for low risk and safety of principal then MMF is your best bet. However, if the rates of Bonds and TBills fall, be sure the effect will be felt in MMF also since that is what majority of the funds goes into. Think of MMF as you investing in Bonds and Tbills without the hassles of contacting your bank to buy these instruments on your behalf, ease of management and liquidation...of course you pay a price for all that (~1% goes into the fund manager's pocket). In my general scheme of things...it is a small price to pay for simplicity.

There is a saying that no one can time the market and i agree absolutely. You can get lucky once in a while but it is a losers game, HF and FIF tries to help you with that as against you picking stocks yourself...

The following might shed more light on the 3 funds from the fund manager's perspective

http://www.fbncapital.com/docs/default-source/fbn-money-market-fund-fact-sheets/fbn-money-market-fund-factsheet---august-2015.pdf?sfvrsn=2

http://www.fbncapital.com/docs/default-source/fbn-heritage-fund-fact-sheets/fbn-heritage-fund-factsheet---august-2015.pdf?sfvrsn=2

http://www.fbncapital.com/docs/default-source/fbn-fixed-income-fund-fact-sheet/fbn-fixed-income-fund-factsheet---august-2015.pdf?sfvrsn=2


****addition****
Playing around the Fund Manager's site I saw this. You would agree even your MMF % is greater than what they have here due to how the calculations are done

http://www.fbncapital.com/asset-management/fund-prices

sammily:
I subscribed to both First Capital Money Market and Fixed Income Fund and was recently paid interest/yield on both and from my calculations, I got an interest of 13.55%pa on MMF and 11.34%pa on FIF. I like to know if others also got similar interest from First Capital and if its advisable going with the yield, to continue with the mutual fund.

I think is depends on you but let me help you correct the calculation above.

FIF has declared dividend twice this year and by my calculation they are @ 14.3% (for the period Dec/Jan-Oct 2015). The fund paid the first dividend for the year in April and the second in October. So if by your calculation what you have received is around 11.34% then you may have bought into the fund later than I did and as such should not use the term pa. If I am right then i can tell you ~14% dividend payment and also an increase in the value of the fund is a good deal (i have not bothered to calculate the rise in value since they go up and down, but if i were to sell my holdings now, i will be making 16.85% on my initial investment)

N.B: Of course calculations will also depend on how much you paid for the fund when you bought in. I bought half of holdings in Dec and the remaining half in Jan and I have re-invested my April dividend

I hope this will help you make a decision.

ukay2:
My oga carpenter...

Please what is the yield of Stanbic IBTC money market fund and investment one VGIF?

Investmentone VGIF is 11% and Stanbic MMF is around 13-14% also

Yem0350:
Hmmm. FBN Money Market. Their interest rate is okay. The only problem I av with dem is customer care relationship. Not replying mails, sms and fone calls. I av b trying to divest my funds for the past 3 wks, but notin was done abt it. Don't knw if am d only one experiencing this. I av planned to pay dem a visit shortly to expree my displeasure ova d way dey handle my mails n messages.
Give them a trial, possibly, u may not experience wat I am facing now.

Please do...one thing I cannot stand is bad customer service. You can also look at the likes of StanbicIBTC

LordCY:
so how much did you invest and how much was your interest monthly

They don't pay interest...it is called yield.

Around 1% per month conservatively. It hovers around 1-1.1% per month.

on 15k, that will be like 150 naira per month

coderXO:
Thus, those here putting money into these bills here should be putting their money into their businesses rather.

Sure if I have a business that is doing well (% profit that is better than bonds, TBills and all), why would I be investing or borrowing my money to the government for 15%...not even for 50%.

It is a game of numbers. Infact i would gladly be borrowing from the bank @ 23-27% than be investing my money for 15%

[quote author=coderXO post=38569747]

coderXO:
@mekaboy, @carpenter

Let's go ask Dangote if he has any Ghana or Nigeria bonds.

Ghana pays 23% on my last checking.

Nigeria pays 14%.

Or better yet, let's ask them which they hold more since they have financial experts managing their money.

If any of us NL know's Dangote, Otedola, Adenuga's people abeg make una ask them what they own more of.

Physical assets or paper investments (not including stock).


Don't even get me started.

This time last year $1 was N160. Today it is $1 to N220.

Mr Adenuga put in $1m at N160 = N160m , at 13% for a year October last year. He gets back N180m today

N180m today is currently $900,000.


I needn't say more.

Oga if you have a striving business, you should be investing your money in your business not bonds or T-Bills or even shares of other companies...that's the way it works.

I don't expect Dangote to be investing his money in another man's business unless he is planning a takeover.

coderXO:
Fees in property are typically 5% or less when you enter high millions.

A 10m budget can build you (2), two-bedroom flats, and definitely will not rent at less than 400k each in a good area.


Bonds, Bills, Property: all good to invest granted that you do your due diligence. But none compares to Property.

If bills/bonds are so tasty, why aren't all the world's billionaires flocking to put money into them? $10m will fetch you a cool $1m per year won't it?

And lets not forget, governments do default on debt.

Give me your comeback on that one.

Property investment is over-hyped. Most landlords make between 4-6% per year and that is if the house is always occupied. House maintenance, selling costs, bank loans if any...eat up all the profit. You will need to be very objective and punch in your numbers.

The ones that make money are agents, lawyers, banks, builders/developers and marketers.

myjoy08:
You are right sir but at the same time numbers matter mostly

Not for me bro, I don't trade much but happy to pay my stockbroker their fee when I drop my load once in a while. Good Customer service also...I can relate with them.

Agbalowomeri:
And my trust for my broker is TEN TIMES than for morgan

That is what a lot of people miss... some of us are not looking at the numbers alone.

That moment when Arsenal webmasters are over joyed and register 2 goals for Giroud in 90 mins