How many Nigerians can afford the minimum investment of $200,000 to invest in Eurobonds. We have more of foreign investors and the professional advisers must ensure the safety of the investments by placing a lien on assets and future income of debtor.


By the way we have Sovereign and corporate Eurobond


Eurobond fund consists of different Eurobond offerings both corporate and sovereign with different maturity periods and investment income

My bank called me yesterday to invest in their dollar denominated mutual fund.

I guess it is different from Eurobond.

Dum20:
My bank called me yesterday to invest in their dollar denominated mutual fund.

I guess it is different from Eurobond.

They invest mostly in Eurobond

emmanuelewumi:
How many Nigerians can afford the minimum investment of $200,000 to invest in Eurobonds. We have more of foreign investors and the professional advisers must ensure the safety of the investments by placing a lien on assets and future income of debtor.


By the way we have Sovereign and corporate Eurobond


Eurobond fund consists of different Eurobond offerings both corporate and sovereign with different maturity periods and investment income

How about this?

Stanbic IBTC Dollar Fund

Stanbic IBTC Dollar Fund aims to provide currency diversification, income generation, and stable growth in USD. It seeks to achieve this by investing a minimum of 70% of the portfolio in high-quality Eurobonds, a maximum of 30% in short term USD deposits, and a maximum of 10% in USD equities approved and registered by the Securities and Exchange Commission of Nigeria.

$1,000
Minimum Initial Investment
$500
Minimum Subsequent Subscription
182 days
Minimum Holding Days

rmx:


They invest mostly in Eurobond

I guess so. Since I do not have up to $200,000 I am wondering if that is the only option available.

Oga Emma said he got his through United Capital and can be gotten through Stanbic IBTC Asset Management.

I am wondering if the one from the banks is different from the ones from Asset Management companies.

Wotowotoman:


Eurobonds issued by Nigeria, Kenya, Ghana and all these struggling African countries are not risk free…where will they see the USD to repay when the time comes

You are correct , have a friend that lost over 200k$ in ghana Eurobond , for now . The interest was too enticing for him , 9.something % I believe

When you buy dollar funds they invest in all sort of dollar instruments , including Eurobonds of all sorts . It’s a basket, risk is less that way . It’s better to play it that way .

VeeVeeMyLuv:

How about this?

Stanbic IBTC Dollar Fund

Stanbic IBTC Dollar Fund aims to provide currency diversification, income generation, and stable growth in USD. It seeks to achieve this by investing a minimum of 70% of the portfolio in high-quality Eurobonds, a maximum of 30% in short term USD deposits, and a maximum of 10% in USD equities approved and registered by the Securities and Exchange Commission of Nigeria.

$1,000
Minimum Initial Investment
$500
Minimum Subsequent Subscription
182 days
Minimum Holding Days

There is difference between buying Eurobond directly from the issuer and buying Eurobond Fund


Eurobond fund is a mutual fund that invests in Eurobond offerings and you can buy with a minimum of $1000.


Buying ɗirectly from the issuer , you need $200,000

Dum20:


I guess so. Since I do not have up to $200,000 I am wondering if that is the only option available.

Oga Emma said he got his through United Capital and can be gotten through Stanbic IBTC Asset Management.

I am wondering if the one from the banks is different from the ones from Asset Management companies.

Which bank

emmanuelewumi:



There is difference between buying Eurobond directly from the issuer and buying Eurobond Fund


Eurobond fund is a mutual fund that invests in Eurobond offerings and you can buy with a minimum of $1000.


Buying ɗirectly from the issuer , you need $200,000

Okay Boss
Thanks alot

rmx:


Which bank

Stanbic Ibtc

Dum20:


Stanbic Ibtc

It will be there asset mgt arm handling . Someone already posted details above . One of the 2 firms I use

rmx:


It will be there asset mgt arm handling . Someone already posted details above . One of the 2 firms I use

Yes, you are right. I just called them and they said it is the Asset Management arm that will handle it.

One needs to open a Eurobond Fund account with them. You also need to have a dorm account.

After the Eurobond Fund account is opened, you can then fund the Eurobond Fund account with dollars.

The Eurobond Fund account is domiciled with Standard Chartered Bank.

So, even if you do not have a dorm account with Stanbic, you can still fund the Eurobond fund account from any dorm account with charges which include $25, N4,000 and 0.005% of the amount to be transferred.

If you want to avoid the transfer charges, open a dorm account with Standard Chartered, then use your Eurobond fund account with Stanbic Ibtc Asset Management.

emmanuelewumi:



There is difference between buying Eurobond directly from the issuer and buying Eurobond Fund


Eurobond fund is a mutual fund that invests in Eurobond offerings and you can buy with a minimum of $1000.


Buying ɗirectly from the issuer , you need $200,000

Oga Emma, Stanbic IBTC Dollar Fund is a Eurobond Fund?

VeeVeeMyLuv:

How about this?

Stanbic IBTC Dollar Fund

Stanbic IBTC Dollar Fund aims to provide currency diversification, income generation, and stable growth in USD. It seeks to achieve this by investing a minimum of 70% of the portfolio in high-quality Eurobonds, a maximum of 30% in short term USD deposits, and a maximum of 10% in USD equities approved and registered by the Securities and Exchange Commission of Nigeria.

$1,000
Minimum Initial Investment
$500
Minimum Subsequent Subscription
182 days
Minimum Holding Days

They did not add the part below as seen on their website.

It is an[b] open ended Fund [/b]
The risk profile is “Aggressive”
The expense ratio is 3.5%
The management fee is 1.5%

Ranked: The Fastest Growing Economies In 2024

Why is Nigeria not on this list, but Niger is?

After the IMF insisted that removing all subsidies would set Nigeria on the growth path, it went ahead to rank Niger and other African countries over Nigeria. Good lesson here: never act solely on recommendations; do your due diligence.

https://www.visualcapitalist.com/ranked-the-fastest-growing-economies-in-2024/

emmanuelewumi:


They should invest the funds in forex denominated assets

💯

The last real GDP growth reported for Nigeria was 2.51%, below all the listed on that comparison chart and even below the indicated World average real growth of 2.9%.

So, we are not yet there. But it is possible.

ositadima1:
Ranked: The Fastest Growing Economies In 2024

Why is Nigeria not on this list, but Niger is?
.../

VeeVeeMyLuv:

How about this?

Stanbic IBTC Dollar Fund

Stanbic IBTC Dollar Fund aims to provide currency diversification, income generation, and stable growth in USD. It seeks to achieve this by investing a minimum of 70% of the portfolio in high-quality Eurobonds, a maximum of 30% in short term USD deposits, and a maximum of 10% in USD equities approved and registered by the Securities and Exchange Commission of Nigeria.

$1,000
Minimum Initial Investment
$500
Minimum Subsequent Subscription
182 days
Minimum Holding Days

I spoke with Stanbic IBTC Asset management and they said your capital in this Fund is not guaranteed. That due to some circumstances you could lose part of your capital.

Dum20:



I spoke with Stanbic IBTC Asset management and they said your capital in this Fund is not guaranteed. That due to some circumstances you could lose part of your capital.

There is no investment that is guaranteed. Under some circumstances, you can always lose your capital. The key is knowing your risk appetite and diversifying your portfolio

Itsrm:


Open an eurobond account.( I use FBN Quest) [b]Open a dorm account with standard chattered. [/b]Pay in your dollar into your dorm account, transfer it to your eurobond account.

You can also use any other dorm account but you will pay excessive transfer charges.

How can one open a dorm account with standard chartered? I've been struggling to open even a savings account with them with no success.

Foodempire:


How can one open a dorm account with standard chartered? I've been struggling to open even a savings account with them with no success.

Savings account with them can be opened from the comfort of your home. In fact on your bed. The requirements are your utility bill, valid ID and an android or IOS phone. Your passport will be taken while opening. Then download the app and set it up. That's all.

However, I don't know how easy a Dorm account is with them. For other banks, your will need like 2 Referees who have a current or dorm to attest to your capabilities/suitable of maintaining the account in written form.

freeman67:


Savings account with them can be open from the comfort of your home. In fact on your bed. The requirements are your utility bill, valid ID and an android or IOS phone. Your passport will be taken while opening. Then download the app and set it up. That's all.

However, I don't know how easy a Dorm account is with them. For other banks, your will need like 2 Referees who have a current or dorm to attest to your capabilities/suitable of maintaining the account in written form.

The app and website haven't been working for saving account opening, the app will direct you to the website and website will redirect you to the app. I want to fund my eurobond account with fbnquest, what's the best way to go about it without incurring excess charge?

Foodempire:


The app and website haven't been working for saving account opening, the app will direct you to the website and website will redirect you to the app. I want to fund my eurobond account with fbnquest, what's the best way to go about it without incurring excess charge?

Sorry, I don't have an idea about FBNQUEST Eurobond funding. Other members who has will respond.

Foodempire:


How can one open a dorm account with standard chartered? I've been struggling to open even a savings account with them with no success.

Have you been to any of thier branches? Not sure you can do it online.

Foodempire:


The app and website haven't been working for saving account opening, the app will direct you to the website and website will redirect you to the app. I want to fund my eurobond account with fbnquest, what's the best way to go about it without incurring excess charge?

It will cost you $30 if you send from your dorm account to your eurobond account.

Dum20:



I spoke with Stanbic IBTC Asset management and they said your capital in this Fund is not guaranteed. That due to some circumstances you could lose part of your capital.

There is NO risk-free investment anywhere.
However, there are degrees of risk- we have Low risk, Medium Risk, and High Risk. The ease of capital loss is what informs the categorization. Stanbic IBTC is telling you the obvious so that you can be well-guided in your investment decision which is the professional norm.

All Bonds of any form are in the medium risk category, MMF in the Low risk and Stocks fall under the High risk. Investors' abilities or willingness to cope with each of the categories is what places them under the conservative ie low-risk tolerance or aggressive or high-risk tolerance investor.

rmx:


You are correct , have a friend that lost over 200k$ in ghana Eurobond , for now . The interest was too enticing for him , 9.something % I believe

When you buy dollar funds they invest in all sort of dollar instruments , including Eurobonds of all sorts . It’s a basket, risk is less that way . It’s better to play it that way .

As of the time Nigeria was issuing eurobonds at 8%, most of the developed world was issuing theirs at less then 2%. The minister of finance then kept sadly repeating that their oversubscription shows confidence in the economy. I remember asking here how Nigeria would afford to pay back. Little did we know CBN had eaten deeply into our reserves.

How can Burundi afford to borrow usd at 8x the rate of Germany? A main reason why there is a long list of developing nations who have defaulted on their commercial loans.
The bond market today is much different today with the US benchmark rate above 5%. Most big investors can get relatively good returns on their cash without needing to delve into the murky waters of commercial debt by developing nations.

I agree, a basket of funds under one instrument is less risky.. but then, you have to deal with high management fees and trust the issuer.

Dum20:



They did not add the part below as seen on their website.

It is an[b] open ended Fund [/b]
The risk profile is “Aggressive”
The expense ratio is 3.5%
The management fee is 1.5%

Expense ratio and management fees are very high and would eat well into expected returns moreso when compounded. Nigeria is overdue large investment platforms/vehicles with cheap fees

jedisco:


Expense ratio and management fees are very high and would eat well into expected returns moreso when compounded. Nigeria is overdue large investment platforms/vehicles with cheap fees

I asked them about the management fee, they said the management fee is spread across all investors, so would be negligible. What they are saying is that not one person will pay the 1.5% but is spread across the investors

Dum20:


I asked them about the management fee, they said the management fee is spread across all investors, so would be negligible. What they are saying is that not one person will pay the 1.5% but is spread across the investors

Yes, that is why if you buy directly with $200,000 from the issuer you can get 8%.



But when you buy retail at $1000 from Asset Management firms, you will earn between 5% to 7% depending on the fund management fees and other expenses

Please, any ntb update?