It feels good when it rains and the atmosphere looks fresh and exciting As much as the rainy season brings joy and freshness, there is also a healthy impairment of people.
Due to excessive moisture in the rainy season, the biggest fear of the spread of flu, malaria, bacterial, and viral diseases remains. However, there are some tips which help you to stay healthy, away from these diseases in the month of this rain.
1. Wash your hands properly
It is very important to wash hands regularly in the month of rain. We go to many places, meet many people, touch many things.
Someone else may have some infection, and you have contaminated with them, or you may have been sitting on a bench with bacterial or viral infection or someone affected by disease touched that thing. So regularly wash your hands with lukewarm water and soap.
2. Do not touch your face repeatedly
Most bacteria and viruses penetrate our body through the mouth, nose, and eyes, so do not touch your mouth again and again in the rainy season.
Do not wander on your head repeatedly, or turn your hands on the face, keep a napkin or handkerchief with it and use it.
3. How to avoid dirty water
It is normal to see filling gutters and pits with water in the month of rain. Due to the accumulation of water, diseases related to water are generated, such as diarrhea, influenza, cholera, and fungal skin diseases.
Always drink boiled water in the month of rain. Use raincoats and umbrellas as soon as possible. Do not get too wet in water and if possible, use rubber shoes to avoid dirty water.
4. Do not eat outside
If you are afraid of getting the disease, they never think to eat outside. Do not even think of eating food on the road side this month. Those who are fond of eating fast food know that most bacteria and viruses are produced in the month of the rain in hotels and canteen food.
Eat fresh and clean food made in the house as long as possible and stay agile in the month of rain.
The Entrepreneur Betting On A Billion Industry From His Quiet Town
Every week, Zikoko seeks to understand how people move the Naira in and out of their lives. Some stories will be struggle-ish, others will be bougie. All the time, it’ll be revealing.
This week’s story pulled off in collaboration with Payday Investor. Before you start to make plans about your next salary, click here.
When was the first time you made any money?
That’s an interesting question because I didn’t make money until I was in my final year at school. I had this friend that cared very little about money, and life, so he drank a lot. But he was a really great artist.
So I got the info that one government house where I had a friend was renovating, and somehow, I managed to make a case for an artist to come make murals across the government house.
On the other end of things, my dad gave me ₦50k to pay my school fees. And what did I do, I carried that money and used it to buy materials for my friend.
He went on to do the work. In three months, we got paid – ₦2.5 million.
₦50k to ₦2.5 million. That is quite the start.
I gave my guy one million. Paid my school fees. Then I spent about ₦800k on getting people to make noise about it – PR in some of the right places. That fetched us other gigs that brought in about ₦1.9 million.
Woah.
Some people at the Government house took an interest in me. The best thing about working with people in government is the access it gives you. Meanwhile, I started looking for what to do with all that money, so I invested some of it in stocks and acquired some land. Pushed that into Agric.
Sounds robust. What happened next?
I applied for YouWin in 2014 and got a grant of ₦6.5 million. It was actually a partner and me.
My partner was the admin and comms guy while I was away, and I was the technical guy.
How did the Fonio business go?
First of all, Fonio, or what we call Acha locally, is a kind of grain. It used to be really popular, but it didn’t get all the love that Sorghum, millet and co have gotten. What we wanted to do was experiment with Fonio in more consumer-friendly forms. We tried it in baking and different recipes. So we developed a packaged product.
Interesting
We got the money in tranches, and the first one was about ₦1.9 million. The first thing we bought was some equipment. There was a kind of dryer we wanted to buy, but it would have cost us about ₦1.5 million locally to bring it here. So I carried my mechanical engineering sense, and we fabricated locally. That cost ₦500k.
We didn’t want to wait for all the money, so we got started immediately. Took the rest of the money buying tons of Fonio from local women, dehull, wash and package.
The value we were trying to add was taking it quicker to consumption.
What’s the demand for Fonio?
It’s a resilient crop, and it requires no fertiliser. People use it for various things, like pudding, swallow, and even baking. People also tend to encourage it as a healthy alternative for diabetic people. But, Fonio doesn’t get as much love as you’d expect. It’s not so popular in Nigeria, so while we believed we had a great product, there was one problem – advocacy.
Now, to make a product popular, you need to make a lot of noise about it. When you make noise about it, your increase demand. But that costs a lot of money and resources.
What came next?
I started to experiment with other stuff and gently ease out of full management of Fonio. Somehow, I found my way back to an old obsession – Coffee.
I live in Jos, and because our climate is unique, coffee grows here. I had a coffee tree from about 15 years ago. I’d roast the beans for my dad, and he’d give feedback and I’d improve it.
In 2017, I decided to give it a shot. I actually tried to go at it from scratch – so I threw in one careless ₦5k.
Then I started going to people who had farms and buying berries from them. Buy, process, roast, sell. And slowly, it grew. By October, we’d done about 800k in revenue. The profit was just about 380-something-k.
The biggest struggle that year though, was that when I started buying coffee, a lot of them were bad. So I started researching more about how to properly treat coffee better, and transferring whatever I learned to farmers.
₦380k? I’m not sure that was enough to sustain you.
So, because I was researching more than most people, that also created another opportunity. I started consulting for other farmers, and someone even asked me to help him co-manage his plantation. It’s sitting on about 50 hectares of land.
I believe there’s a growing coffee culture in Nigeria, and I want to be a part of that. Especially because the coffee we brew is not only fresh – a lot of imported coffee is stale – and it’s homegrown.
If you ask me about numbers, I can assure you that I know very little about those things. My wife was the one managing my finances, while I just focused on making my roast better.
Ask my wife, please.
Fair enough.
Hello, your partner asked me to ask you about money, because he doesn’t seem to know much about it.
Hahaha. Very good. I actually started keeping records in July 2017, because there needed to be a system that showed progression and tracked growth or something. There was no evidence that there was growth, because we weren’t tracking anything. He’s passionate, but passion is not always enough to run a business. If you have passion but no skills, it dies.
Word.
In August 2017, it was ₦50k. These days, it can fetch many times that amount on very good months. In March, for example, we made up to ₦400k in profit.
That is interesting.
Yes, that’s more than the entire 2017 from selling coffee alone. We tend to re-invest a lot of it in materials, from the coffee beans to the packaging. Also, because you don’t harvest all year round, we invest in buying a large amount of coffee beans.
So, what’s the most important lesson as an entrepreneur?
First of all, hunger is super important. I think entrepreneurship forces you to improve, make things better, and do things differently.
It is also forcing me to work on my personal discipline; in finance, in relationships, and everything –
Her: – he still needs to hire someone to manage his books. I can no longer do it because my 9-5 job is taking my time. There needs to be someone to actually pay him a salary. That forces him to be more accountable.
How much salary do you think you’d earn as an entrepreneur in 5 years?
Him: Using today’s value, maybe ₦100k?
Her: Add more.
Him: Okay, ₦250k. I think what is most important for me is that we have a strong place in the new coffee culture in Nigeria in the next 5 years.
Entrepreneur or not, bills need to get paid. How’s that going?
First of all, the most important one is rent, and ₦250k per year fetches us a really good 2-bedroom. I hardly go out much, except I have to go and get materials. That means I don’t spend a lot on transport. Last-last, ₦50k is enough for a good month in Jos.
Minus your business, what other investments do you have?
Her: Right now, we’re actually looking into doing mutual funds, my sister is a heavy investor in mutual funds. I’m considering it too though. Aside from that, I also invested in a farm with my parents. It’s about 9 hectares of Rice and Soya Beans.
When do you think you’ll retire?
Her: My husband said he wants to die at 85, so that he doesn’t turn to anybody’s problem. Hahaha.
Him: It’s too much?
Her: Too small. Anyway, you’ll be too troublesome then. Him: By 60, I’m done with work. Then I’ll be travelling, and having the time of my life.
What was the last thing you paid for that required serious planning?
A van – to be honest, it’s still in the works. My farm is quite far from the house, so buying a van will help me move produce fast.
What’s the most annoying thing you’ve paid for recently?
We paid for coffee, and they gave us bad coffee beans. We had to return it, and they didn’t pay back for up to a year. A loss.
Do you have an emergency plan for weird things like health emergencies?
Her: We were actually talking about that yesterday, I think we’re going to do it with one of these apps.
Happiness levels, 1-10.
Her: To be honest, we’ve not reached where we want to go.
Him: Yep. But I really don’t feel like I’m struggling, I even have room to give a lot. So, I’m really good.
In a twist of events, the Nigerian Bourse closed negative last week, with the NSE ASI shedding 2.05% WoW to close at 30,432.13 points, with market capitalization dropping by N449.16 billion. The bearish sentiment was spurred by losses recorded across all sectors; Banking (-0.96%), Cement (-5.13%), Construction (-5.44%), Personal care (-2.62%), Food (-1.69%), Insurance (-1.48%) and Oil & Gas (-11.90%). Dissecting the sector performance reveals selloff across various stocks such as GUARANTY: -3.80%, DANGCEM: -5.26%, PZ: -9.26%, UNILEVER: -0.16%, DANGSUGA: -12.88%, SEPLAT: -6.64% and MTN: -0.33%.
• Dangote Cement Plc – STRONG BUY (FVE: N248.14): Dangote Cement Plc (Dangcem) Q1 2019 result showed decline in group revenue by 0.8% YoY to N240 billion, largely emanating from Nigeria. However, the high base of effective tax rate in the prior year, resulted in much softer decline for EPS to N3.54 from N4.23 in Q1 18. Going into 2019, we forecast slower growth in our PBT stemming from i) downward revision of our 2019 and 2020 volume forecast; ii) downward adjustment to revenue per ton; and (iii) reduction in our gross margin estimates to 57.8% from 58.3%.
• Seplat Petroleum Development Company Plc – STRONG BUY (FVE: N782.15). Seplat recorded a decline in EPS by 53% QoQ to $0.06 over Q1 19 following drop in revenue as well as increased over lift in the period and loss on derivatives. We have reduced our FVE on the stock following moderated expectation on capital allowance and increase in our cost per boe estimates which led to a reduction in our forecast 2019 EPS to $0.33 from $0.43.
• Guaranty Trust Bank Plc – STRONG BUY (FVE: N49.66): GTB Q1 19 revealed a double-digit expansion in EPS (+16% QoQ to N1.68) on the back of lower funding cost as well as strong NIR. Although, we expect a slower growth in EPS (+4% YoY to N6.53) over 2019, our case for GUARANTY remains the resilience in NIR, improved cost management, still strong loan book with a moderate expansion in credit loss provision to 0.5%.
• Fidelity Bank Plc – BUY (FVE: N2.92): Fidelity bank kicked off the year on a good note with the bank posting EPS growth of 17.2% QoQ to N0.21 largely due to support from a higher interest income and lower OPEX. Despite an expected decline in NIR for the bank, we expect Fidelity to record a modest growth in earnings over 2019 on account of our expectation of higher loan growth as well as moderation in funding cost. We forecast a 11% increase in EPS (N0.88) over 2019 and thus maintain our BUY rating with an FVE of N2.92.
• CCNN Plc – BUY (FVE: N22.87): We had earlier noted the solid volumes reported by CCNN in its Q1 19 financials. As a result, we now see increasing volume growth on the horizon with our forecast average capacity utilization of 88% and domestic market share of 5.6% by FY 2023 (FY 18: 3.1%). Additionally, we see increased efficiency on the company’s new plant translating to improvement in margins with average estimate of 48% (previously: 43%). Consequently, we have raised our FVE to N22.87 (previous estimate of N17.31) which translates to a BUY on our rating.
Jude, Jeff and Jaime were born on the same day to the same mother, looked almost the same, grew in the same household yet they were vastly different as black is to white.
Jude was an incredible optimist. He was that man who believed that there was something good in every situation. He expected awesome things to happen for him and they did. He often joked that it was for him that the word ‘luck’ was invented. The man who was willing to live life to the fullest, take chances and learn from any mistakes whatsoever.
Jaime was the indifferent one. He took life as it came not expecting much, and therefore not receiving much too. Life was just one blah place and his indifference showed in the clothes he wore, the decisions he made, the friends he kept and the life he lived.
Jeff was a pessimist to the teeth. He had the knack for conjuring the worst possible outcome to every situation on earth and most times, when life responds to his negativity by bringing bad circumstances his way; he takes that to mean he was right.
Many situations had these brothers taking decisions differently thereby creating their current lives. Let’s take a look at some.
The dream car
The brothers . Jude imagined and spoke excitedly about buying himself a G-Wagon because he loved that car. Jeff scoffed and told him to be realistic and cut his coat according to his size before declaring that even though he desired a car,
Outcome: Somehow, new deals came around and Jude won a contract that afforded him just enough to buy his G-Wagon. Jeff? He rides to work with Jude each day since they both work on the Island while Jaime manages their father’s rickety Corolla.
The Investment
Jeff had a bad story to tell each time anyone tried to tell him about investment. So when the Money Market Fund idea was pitched to him and his brothers by their cousin, Jeff jumped up screaming scam!!! Jude the optimist decides to give it a try because he figured that if a lot of wealthy people were doing it, there had to be something about it, and he invested. Jaime was not even listening when the topic was being discussed despite being present.
Outcome: Jude kept on investing until he started ticking off his goals one by one. He bought a property in Lekki and started building his dream house. He also had enough to buy stocks and stash away for emergency. Jeff is still waiting for something bad to happen so he can say “I told you so” to Jude. And Jaime is indifferent about any additional income, managing the N120, 000 he has earned as salary for the past 4 years.
Career growth
When Jude decided that he needed a career change and started applying for courses, Jeff advised him to stay where he was before things get worse in his new field. Jeff reminded him that the grass wasn’t greener on the other side but to Jude, the grass was actually sparkling green for him and he was willing to take the chance to prove it or at least learn from the experience.
Outcome: Two courses aced and several attempts at submitting resumes plus interviews later, Jude is off to Dubai to manage the Customer Service Department of AlMaed Khaleem Oil and Gas Company stationed there. Jeff still works with the bank – a job which he hates and complains about always but is not willing to take steps to move. Jaime remains stagnated doing the same old job and not bothered about growth.
These three brothers replicate three personalities that are available to us all for the choosing. Which of the brothers are you currently?
I had a talent for blowing cash. My bestie Becky was tired of my money habit. No matter how much I tried to save, I always end up dipping into it and using the cash for seeming emergencies.
The thing is I love shopping a lot. I love clothes, shoes, trendy handbags and all things nice. I love to slay and with the salary, I got working at a four-star hotel for five years, I could definitely afford the lifestyle I wanted. The only problem was that at 28, I was still jumping Danfo up and down Lagos and getting into tongue wars with conductors over Fifty Naira change every time.
It used to be me and Becky making these crazy trips around the city on most days, but the baby girl got herself a cool ride and left me at it. Now, I could always hitch a ride whenever we were on the same shift or going in the same direction but on days when it was not so and I had to use public transport, it felt so lonely and annoying having to use public transport.
Perhaps, the negative vibes I was getting was a sure sign that I was grown enough to own a ride and honestly, with my salary, I could afford it if I became more disciplined with money and saved towards it. This thought bothered on my mind for a long time.
While scouring the internet one evening, I came across a pop-up ad from ARM Life on saving for the future and when I checked it out it was like the answer to a prayer I didn’t even realize I was offering.
I went to ARM Life official site and gathered information about the kinds of policies they offer and I chose ARM Life Saving Plus Plan as it suited me perfectly.
I can say confidently choosing a saving plan on ARM Life was the smartest decision about money that I have ever made. I got an SUV in three years and even Becky was surprised.
She grilled me non-stop about how I bought the car. At first, she imagined that it was a gift from my parents or fiancée. She knew my habit with money so she found it hard to believe that I was able to afford it.
I let her in on the secret and now we both are using the platform to save for bigger plans in our individual futures!
Esther stood for close to an hour drinking in the sight of her husband Felix as he lay cold and lifeless in state. She tried to remember how well she knew him before his sudden demise- but the recent events of the past few hours brought her back to reality with the reminder that perhaps she didn’t know this man as well as she had thought.
Esther had watched strangers stroll into her home the moment her husband’s death hit the news claiming to be family.
Felix Brown was the CEO of Brown Entertainment – a foremost multimillion-naira entertainment company in Nigeria. His wife Esther Brown was a Director and also the Head of Communications in his company. Together, the couple has three daughters two of whom were studying at Oxford University with the last girl still in Secondary school.
The couple had braced all storms and weathered every obstacle to build the business that catered to hundreds of staff. At home, Felix was the doting father and loving husband. Esther indeed had it all.
Until the unfortunate circumstance that claimed her husband’s life one cold Monday morning. Esther had woken before her husband which was unusual for a man who woke every day at 5AM and spent 35minutes reading.
She went about her day until she realized at 7AM that Felix was still in bed. Waking him proved abortive until the family doctor arrived to confirm the worst, Felix had passed away in his sleep.
The media didn’t allow the Brown family time to mourn before throwing the news across all platforms. Social media was agog with the news and his two daughters heard of their father’s passing via a text message from their friend condoling with them.
The hours after that would reveal secrets Esther would never have thought of. First, it was Ekaette the housekeeper from 10 years ago appearing with a boy she claimed belonged to Felix. Then Felix’s mother who never liked Esther shows up with a certain Aisha whom she claimed Felix had two children by before his marriage.
Trying to understand the drama going on in her home, Esther observes quietly as uncles, aunts and distant relatives come with one claim or the other. She doesn’t understand if the entire charade was in fact the truth. Had she been living with a stranger all these years?
She kept staring at Felix until a hand on her shoulder brought her back to reality. It was her only brother James. He takes her to the room and proceeds to ask her a simple question. “Did Felix leave a Will?” A question to which Esther answers in the affirmative. “Good” James replies “You have nothing to worry about then”.
***
.
Creating a Will is a way to secure your assets for the ones you love in case of uncertainty.
For 3 consecutive years, our Mutual Funds have outperformed their benchmark
In an interview with BusinessDay’s Dolapo Ashiru, Kai Orga, Acting Managing Director at ARM Investment Managers, speaks on various issues regarding the fund management sector of the economy and how the ARM Mutual Funds have performed over time.
Interviewer: How are you leveraging on technology via digital & mobile platforms to further increase your reach and serve clients better?
Kai Orga: In cognizance of the fact that digital is the future, ARM Investment Managers started on a journey a few years ago to overhaul our platforms, systems, and processes to make them more customer friendly; improve our service delivery and reduce transaction turnaround times. We are implementing an omni-channel approach whereby solutions delivered are consistent across the various platforms, facilitated by a harmonized customer service.
Today, we have multiple channels to serve our clients – a web client portal, mobile application, Quickteller, GT USSD, E-Bills Pay, GT Collections, Shortcode to name a few, which are all being utilised by clients to execute transactions with us. We are able to onboard new clients easily and in real-time; and an integrated mobile application is also underway, as we make a conscious effort to move away from having multiple applications operating in silos. Adding to our portfolio of channels, we launched PayDay Investor last year, an investment application that enables our customers to invest seamlessly in the ARM Money Market Fund while providing convenience, and excellent user experience to our customers.
We are however mindful of the inherent risks associated with financial technology and the need to ensure that customer data is kept safe and managed appropriately, therefore, we have strengthened our risk management processes by including IT security as a focus area within our risk management framework.
Interviewer: What are your views on the emergence of Fintech companies and do you feel threatened by their emergence?
Kai Orga: The emergence of Fintech companies has paved way for technical innovation in the finance and investment industry and has given rise to simpler and more customer-focused processes and solutions utilizing faster and better technology as well as harnessing customer data. As a firm that is keen to embrace change, we do not view their emergence as a threat, but rather as an opportunity to learn, adapt and collaborate towards offering better services to our clients.
What is driving patronage for Fund managers especially from the retail client segment?
Kai Orga: The main drivers of patronage are returns and diversification. Retail clients have numerous options for saving and investing their funds; however, the service fund managers offer over and above banks, stockbrokers and other savings and investment platforms is the ability to invest in multiple asset classes and have their investments professionally and actively managed, even with very minimal funds. Through fund management vehicles, investors are exposed to equities, fixed income, money market instruments, real estate and even alternative investments such as infrastructure. Clients are even able to gain access to offshore investment vehicles.
Interviewer: What is the ratio of Retail Vs Institutional Vs HNI clients in the fund management space?
Kai Orga: The assets under management of ARM Investment Managers is currently split almost equally among the 3 investor types – i.e. retail investors, high network individuals and institutional clients. It is difficult to estimate the split for the industry as a whole; however, there is a concerted effort by fund managers to grow their retail products.
Interviewer: What is the average return on portfolio like in the various Asset classes?
Kai Orga: In 2018, bond and Treasury bills yields were 14.16% and 13.92% on average, respectively. As for equities, the Nigerian Stock Exchange (NSE) which comprises all listed securities in Nigeria had a negative return of 17.8% in 2018, after a positive return on 42.3% in 2017. The stock market in Nigeria is especially very volatile, which means there is significant opportunity for returns but the accompanying risk is also high. Stock selection is key when investing in equities as some specific stocks have a better performance history and are better able to withstand shocks in the market.
Interviewer: In advising clients what determines your portfolio structure/Asset mix for the different categories of clients?
Kai Orga: Our financial advisers profile clients majorly based on three categories being: The clients’ investment objective; risk profile (how much risk the client is willing to take in order to achieve returns); investment horizon (how long the funds are available for investment). All of these affect the investment advice given as some investments have a minimum holding period while some investments are very risky and should only be undertaken by individuals that have enough assets to sustain them should the investment turn bad. We also carry out an assessment of the clients’ peculiar circumstances – that is their age, marital status, number of dependents, income and net-worth, which feeds into our investment advice. One other important factor in structuring client portfolios is the performance of the various asset classes (both current and outlook) as we always strive to ensure optimal returns for our clients.
Interviewer: What are the current challenges being faced by fund managers in Nigeria? And how are you mitigating against those challenges?
Kai Orga: The Nigerian financial market is still relatively small with a lot of potential for growth. The main challenges we face as fund managers are around the implementation of ethical standards and effective corporate governance, as these factors ultimately have a major impact on the integrity of our financial market. Another key challenge is the depth of the market. While the industry has come a long way, low financial literacy and awareness has hindered growth of the industry. There is only so much development that can take place in terms of developing new products and asset classes unless we have a population that is ready to accept this. ARM Investment Managers does its bit by working with the regulators to improve financial literacy through series of financial planning presentations to targeted audiences.
Interviewer: How challenging is it to assess risk in the Nigerian Financial markets given our level of development and data availability?
Kai Orga: The Nigerian financial market is still relatively small but with a lot of potential for growth and development. The regulators have done a lot of work in terms of investor protection, and this is helping to reduce the inherent risks in the market. This is the reason Fund Managers’ investment universe is limited to listed companies and securities that are well regulated and monitored. However, while the non-bank financial services industry has come a long way, we still have challenges and inefficiencies surrounding transparency and disclosures as well as unfriendly practices. Furthermore, there is still a certain element of market risk that cannot be eradicated even in developed countries.
Interviewer: Which of your various mutual funds has received the most subscription from your clients and what reasons are given for this selection?
Kai Orga: Most Nigerian investors are risk-averse, so products in the fixed income space which are capital guaranteed and provide a steady stream of income are usually preferred. Consequently, the ARM Money Market Fund is by far the highest subscribed fund in terms of assets under management and customer base.
Interviewer: Can you give us an idea of your various mutual funds and their performance?
Kai Orga: ARM Investment Managers currently manages 4 different mutual funds: Aggressive Growth Fund, Discovery Fund, Ethical Fund, and Money Market Fund. Each fund has its own risk and returns objectives which ultimately determines the required asset class allocation to meet those objectives. The ARM Money Market Fund is a risk-free fund which guarantees investors’ capital while the Aggressive Growth Fund is our riskiest fund on account of its high allocation to stocks (80-100%).
The ARM Mutual Funds usually outperforms their respective benchmarks as well as other Funds in the industry with similar asset allocation profiles. For instance, ARM Money Market Fund is currently yielding 13.74% as of end of March 2019.
ARM Mutual Funds
The ARM Discovery Fund is an investment that provides capital growth primarily through investments in equity, real estate and fixed income securities in the Nigerian market. The Fund Manager maintains a minimum equity position of 40% and a maximum of 65%. The Fund is suitable for investors who have a moderate risk tolerance level. The minimum investment is N10,000 and additional investment is N5,000.
The ARM Aggressive Growth Fund invests in stocks (80%-100% maximum) and money market instruments (0%-20% minimum). It is suitable for high-risk takers who expect capital appreciation over the long term. The minimum investment is N50,000 and additional investment is N10,000.
The ARM Ethical Fund invests in shares of Shari’ah compliant companies quoted on the Nigerian Stock Exchange, real estate and other investments compliant with Islamic Finance. Certain sectors that hold stocks such as Tobacco, Breweries, and Entertainment are excluded from the Fund’s portfolio. It is suitable for investors who would like to invest according to their moral beliefs and also wish to achieve long-term capital growth. The minimum investment is N10,000 and additional investment is 5,000.
The ARM Money Market Fund (MMF) is an open-ended fund that invests in money market securities such as Bankers’ Acceptances, Certificates of Deposits, Commercial Papers, Short term debt securities issued or guaranteed by any Federal or State Government of Nigeria (such as Treasury Bills). The Fund is structured to preserve capital invested and provide income which is payable quarterly. The minimum investment is N1,000
For 3 consecutive years, our mutual funds have outperformed their benchmark brief description of the different funds and their performance over the last 3 years is as stated below:
Year
Performance Measure
2016
2017
2018
3-year Average Fund Performance
Benchmark
3-year Average Benchmark Performance
Aggressive Growth Fund
Fund Return
4.16%
46.79%
-8.57%
14.13%
NSE 100%
6.11%
Discovery Fund
Fund Return
4.92%
34.66%
-5.49%
11.36%
NSE:T-bills
60:40%
10.35%
Ethical Fund
Fund Return
2.79%
22.18%
3.53%
9.50%
Lotus: Skye shelter: Osun Sukuk
50:20:30%
9.64%
Money Market Fund
Effective Yield
9.92%
17.19%
12.98%
13.46%
91-day T-bill
13.03%
Interviewer: What determines the inclusion of an asset class and the weight assigned to it in a Fund?
Kai Orga: Each Fund registered with the Securities and Exchange Commission (SEC) has a trust deed which clearly states its risk and return objectives, as well as the asset classes the Fund can invest in and the Fund’s allocation to the various asset classes (ranges). The actual weights assigned to the asset classes however is determined by the fund manager’s assessment of the market and expectations of future performance.
Interviewer: What kind of Equities are included in your equity fund and the criteria for their inclusion or removal?
Kai Orga: ARM invests primarily in blue-chip securities that have demonstrated the ability to provide steady returns over a period of time and also have high liquidity (that is stocks that are actively traded on the Stock Exchange). We invest in securities that we believe are priced below what we consider to be their true business value, to gain significant returns for investors when the price of the stocks rise to reflect the true value of the underlying company. In the same vein, we tend to sell stocks that we believe to be overpriced.
Interviewer: Where do you see the fund management industry in the next 5 years?
Kai Orga: We are confident that the regulators’ actions and efforts will ultimately serve as an impetus for faster growth in years to come. We see an increased interest in securities trading and in mutual fund products as investors become more financially aware, which should hopefully lead to the market becoming more dynamic with the inclusion of more asset classes and more securities on the Exchange. This, in turn, is expected to lead to increased competitiveness on the part of fund managers as we strive to improve our service delivery, leveraging on all available technology, and to focus on developing innovative products that resonate with our target market.
Wasn’t it just like yesterday you brought your children home for the second term school vacation and yet they are back to school in the blink of an eye? Of course you know what going back to school entails… School fees, new socks and singlets, maybe new lunch boxes, new stationery and a few more.
But in 4 months’ time, these expenses will look like child’s play in the face of the new school year responsibilities. In September 2019, your child could be in a new class which means bigger expenses
As is normal with many schools, a new class will require entirely new set of books, often new school uniforms, higher school fees, lesson fees, school bus, after school service and those other seemingly small fees that eventually add up. In short, in September, if you are not prepared, you’ll be up to your neck in expense.
That is why this is your big reminder to start preparing ahead of time. As a parent/guardian, now that you’ve paid the third term school fees for your child/ward, this is the time to draw up a mock list of what you could be spending money on ahead of September school year.
Here’s a guide:
You can also go ahead and find out the school fees and additional fees pupils/students in the class your child (ren) will be joining in the new school year pay. Also find out books they will require – have these listed giving room for any unexpected hike.
When that list is ready, find out cost of the items and pen them down. Now, go ahead and do the math to see how much you may need to foot the bill when the time comes.
You now have a tentative sum to work with. Take the next crucial step and start investing diligently towards it.
By the time four months comes around, you should have enough money plus interest accrued to sort school expenses without breaking a sweat.
Ahead of Auction | Nigerian Treasury Bill | May 16 2019
The Central Bank of Nigeria will be holding their 6th NTB auction of the year where it plans to rollover N50 billion worth of Nigerian Treasury bills split between 91 Day – N18 billion, 182 Day – N17 billion and 364 Day – N20 billion.
Tenor
Amount sold at the last auction
(N billions)
Previous stop rates
Amount on offer tomorrow
(N billions)
91
5.8
10.29%
5.8
182
29.2
12.6%
29.2
364
23.3
12.85%
23.3
Our take. With the recent approval of the N8.9 trillion appropriation bill by the Senate, the stage appears set for a ramp up in borrowings over the rest of the year. In fact given the lower NTB maturity profile over the next few months and lower interest rate environment, the case for NTB net issuance at tomorrows auction appears reasonably priced. However, if recent trend at the NTB auctions are anything to go by, we see FG maintaining its unflinching stand towards rolling over maturing NTBs in a bid to trim its cost of debt service.
That said, going into tomorrow’s auction, we rule sizeable NTB issuance and at best see FG rolling over its entire maturity for tomorrow. Also in line with recent pattern, coupled with pent up liquidity in the system, we see build up in demand at the 364 Day leg which bodes well for FG’s bargaining power. Assembling these factors, we see room for lower rates at tomorrow’s auction. Please our expectation below:
Ask Shade About Trusts: How Do I Plan For My Unborn Children?
Hello Shade,
I read your previous article in response to a lady’s question regarding her intended husband’s will. I found it admirable that her intended husband had gotten a will so early in his life. I trust God for protection and long life, but I have started considering getting a will too. Especially because of the occupational hazard I am exposed to, working on the high seas. Although we have been married for almost 10 years, my wife and I have no biological children, but we have two adopted children who will definitely be catered to in my will. However, I am certain that we are going to have children of our own very soon. Do I have to wait till my children arrive before including them in my will? Is it possible or commonplace to make provision for unborn children and grandchildren?
Sylvester, from Port Harcourt
***
Hello Sylvester,
Thank you for reading my previous post. I am glad that our opinions concerning that matter are aligned. I must also commend your admirable decision to adopt children while waiting for your biological offspring.
Considering having a will is a good step to take, particularly as you are constantly exposed to occupational hazards. You are absolutely right, getting a will does not negate our trust in God’s protection, it only helps us prepare for that which is inevitable. The thought of passing away and its eventual consequences to loved ones who are left behind is enough to necessitate getting a will. As a matter of fact, everyone should consider getting a will as no one knows just how much time they have.
Children are usually the worst hit when one or both or their parents pass on, hence providing for them is indeed a necessity. Although the Child’s Right Act has already highlighted the rights of children irrespective of whether they are unborn or adopted, you can also make provision for your unborn children as a separate class of beneficiaries in your will. It is not unusual to provide for such beneficiaries using
suitable and flexible estate planning tools.
I am glad that you are considering getting a will as soon as possible. I would encourage you to act without delay.
Thanks to everyone who has reached out to me with their concerns. If you would like to have your question featured, please email [email protected]
