Kai Orga, Managing Director of ARM investment Managers, in this interview with BusinessDay, breaks down the transition of mutual funds from a niche financial product to the cornestone of Nigerian wealth creation, and how ARM is navigating a high-interest-rate environment to deliver value, amongst others. Excerpts:
In an era of persistent double-digit inflation, how has ARM adapted its fund management strategy to ensure that mutual funds move from being mere “savings buffers” to genuine wealth-creation tools for Nigerians?
Inflation has tested every Nigerian household, underscoring the importance of preserving capital and extracting more value from every naira invested. That’s where expertise matters. At ARM Investment Managers, we treat volatility as a source of opportunity, not paralysis deploying a coordinated investment process that actively seeks mispriced value across asset classes.
Our strategy is anchored in disciplined active management: knowing what to buy or sell, when to act, and how much exposure to take relative to clearly defined benchmarks. We continuously test our views against macroeconomic conditions and market dynamics, refining allocations to keep performance competitive through cycles.
Crucially, we offer a suite of products calibrated to different risk profiles and objectives and we manage each fund strictly to its stated policy. That consistency and transparency enable us to shift mutual funds from mere inflation buffers to durable engines of wealth creation.
Mutual funds are often cited as the “premier wealth vehicle” because of their accessibility. What specific barriers, technological or psychological, has ARM broken down to bring institutional-grade investing to the everyday Nigerian?
We started by breaking the communication barrier, replacing jargon with plain language so people understand both benefits and risks. Through structured content, webinars, digital tools and how‑to videos, we’ve raised product literacy, helping investors grasp not just what to buy, but why.
We then lowered the cost of entry. Institutional‑grade access no longer requires institutional capital. With minimums from ₦1,000 on funds like the ARM Money Market Fund, Nigerians can start small and build consistently, without compromising professional management. We’ve also opened doors to high‑grade fixed income previously inaccessible to lower‑ticket investors, advancing financial inclusion in practice, not just policy.
On the technology front, ARM One, our flagship mobile platform on Android and iOS, brings the entire investing journey online: account opening, fund purchases, portfolio tracking, performance insights, and redemptions. Whether you are a market trader in Onitsha or a young professional in Port Harcourt, you now have the same seamless access to ARM’s investment expertise as an asset management company in Lagos.
To address Nigeria’s trust deficit, all ARM mutual funds are SEC-registered, independently custodied, and trustee-supervised. We publish performance transparently, pay dividends promptly, and deliver electronic statements to every unitholder. Our governance strength is independently validated by dual AA credit ratings from Agusto & Co. and GCR Ratings, a powerful testament to our financial soundness and commitment to investor protection.
Finally, we invest in education and community. Through the Realising Ambitions blog, in‑app insights, social content, partnerships, webinars, and CSR Initiatives, we promote financial literacy and demystify diversification, compounding, and asset allocation. Programs like Refer & Earn harness social proof, as people invest more confidently when someone they trust has had a positive experience.
Our product range now mirrors institutional choice: the ARM Money Market Fund (low risk, high liquidity), ARM Fixed Income Fund (steady medium‑term growth), ARM Discovery Balanced Fund (equity‑driven appreciation), ARM Halal Balanced Fund (Shariah‑compliant), and the ARM Eurobond Fund (dollar protection). What was once exclusive is now everyday accessible.
Bottom line: We have broken three barriers, financial (low minimums), technological (mobile access), and psychological (regulation, transparency, education), so more Nigerians can invest with confidence
3. What investment strategies and asset-allocation decisions enable ARM to move beyond capital preservation and consistently deliver inflation-adjusted growth?
We practice active portfolio management within robust regulatory and internal policies, giving us the flexibility to respond to market shifts without losing discipline. Asset‑allocation decisions reflect our macroeconomic outlook, fund guidelines, risk profiles, and return objectives. Our aim isn’t just to beat inflation, it’s to deliver attractive risk‑adjusted returns consistently. That principle sits at the heart of every allocation we make.
Given the volatility of the Naira and the fluctuating yields on Treasury Bills, how is ARM currently balancing its portfolios to outperform the “inflationary floor” without over-exposing retail investors to risk?
Given the volatility of the Naira and the frequent repricing across the fixed income curve, generating sustainable real returns has become structurally more challenging. Persistently high inflation and pronounced currency pass-through effects have further raised the hurdle, making consistently positive real returns, particularly within traditional fixed income assets, more difficult to achieve.
Against this backdrop, our objective remains clear: to deliver positive, risk-adjusted real returns that preserve purchasing power while avoiding undue volatility for retail investors. We pursue this through a combination of strategic asset allocation and disciplined tactical positioning across public markets and, where mandates permit, selective exposure to alternative asset classes that can enhance diversification and improve the resilience of real returns.
However, in an environment where inflationary risks remain elevated, we recognize that fixed income exposures alone may struggle to consistently outperform the inflationary floor. Accordingly, where investment mandates permit, allocations are increased to equities, with a focus on fundamentally resilient bellwether stocks that exhibit strong earnings visibility and pricing power.
Beyond public markets, alternative asset classes are incorporated where appropriate, including real assets and other inflation-hedging strategies, to enhance diversification and strengthen the durability of real returns.
In essence, we remain highly conscious of the need to develop innovative, well-diversified portfolio solutions that can deliver resilient real returns for our clients, while prudently managing downside deviations and preserving capital across market cycles.
In the Nigerian market, trust is a currency as valuable as the Naira. How has the regulatory evolution of the SEC and the transparency of the mutual fund structure helped win over investors who were previously skeptical of formal financial markets?
The SEC has tightened the system where it matters most: governance, licensing, disclosures, and periodic reporting. In Collective Investment Schemes, assets must be held by independent custodians with trustee oversight, enforcing true separation of duties and adherence to the trust deed. This architecture adds visible checks and balances.
The Commission has also broadened market access, supporting product innovation, investor education and digital distribution, helping demystify investing for the retail segment. In an environment where governance gaps once eroded confidence, a stronger regulatory framework has been pivotal to restoring trust and encouraging long‑term participation.
We have seen a surge in interest in Money Market Funds and Dollar-Denominated Funds. Do you see this as a temporary hedge against current economic headwinds, or a permanent shift in how Nigerians view portfolio diversification?
Both are responses to today and a reset for tomorrow. Money Market Funds deliver higher yields than savings accounts with daily liquidity, making them a practical alternative for everyday cash management. Dollar‑denominated funds address currency risk, offering naira depreciation protection, a hedge against imported inflation, and access to Eurobond yields that can be compelling in hard currency terms.
While the surge reflected marcro headwinds, it also reveals a structural evolution: investors are embracing multi‑currency, multi‑asset planning. As financial literacy and digital access deepen, these products will not just be safe harbors; they will remain core building blocks of retail portfolios.
With the rise of “Invest-tech,” how has ARM integrated digital platforms to transition from a traditional asset manager to a fintech-driven powerhouse? Has this lowered the cost of entry for the average investor?
We’ve built proprietary digital rails and forged strategic partnerships. The ARM One app is a unified, mobile‑first hub for onboarding, accessing all ARM mutual funds, trading securities, tracking real‑time performance, receiving tailored insights, and executing transactions securely.
Partnerships with leading fintech platforms extend our distribution nationwide, so investors can access institutional‑grade funds in a few taps, with low minimums starting from ₦1,000, no branch visits, and no paperwork.
Has the cost of entry fallen? Unequivocally, yes. Digital onboarding, micro‑ticket investing, and automated contributions have removed the friction and cost that once kept people out. What used to require a physical office now needs only a smartphone and data.
Beyond individual wealth, how is the collective pooling of capital in ARM’s mutual funds currently supporting Nigeria’s broader economic infrastructure and corporate growth?
Beyond individual wealth creation, the collective pooling of capital in ARM’s mutual funds plays a meaningful role in Nigeria’s broader economic development. A key example is the MOFI Real Estate Investment Fund (MREIF), which mobilizes long-term capital to finance residential mortgages at single-digit interest rates, well below prevailing market levels. This directly improves housing affordability, deepens the mortgage market, and supports growth across Nigeria’s real estate and construction value chain.
In fixed income, our funds also provide steady liquidity to government and quasi-government securities, helping finance critical infrastructure in housing, power, and transport.
On the corporate side, ARM’s equity and balanced funds channel patient capital to well-governed Nigerian companies, supporting expansion, strengthening balance sheets, enabling job creation, and enhancing market discipline through active price discovery and engagement.
Looking forward, what key macroeconomic, regulatory, and demographic trends will shape the next phase of mutual fund growth in Nigeria, and how is ARM positioning itself to lead that evolution? Will we see more specialized funds (like ESG or Infrastructure-focused retail funds) becoming mainstream?
Macro: A moderation in inflation and a shift by the CBN toward monetary normalization would stabilize real yields, setting the stage for longer‑duration fixed income, balanced funds, and specialized strategies. Continued FX reforms and transparency will be critical to restore confidence, revive foreign portfolio flows, and broaden global diversification.
Regulation: The SEC’s openness to product innovation should spur growth in ETFs, REITs, Shariah‑compliant funds, thematic vehicles and alternative, with governance, ESG integration, and investor suitability separating the seasoned managers from the rest.
Demographics: Nigeria’s millennial cohort is moving into higher‑earning years, creating demand for goal‑based solutions, from home ownership and education trusts to multi‑fund wealth plans. These investors value professional management, diversification, and downside protection, and are comfortable assembling portfolios across several funds to meet life goals.
Specialization is already moving mainstream. When framed locally, ESG and ethical investing resonate; infrastructure, private credit, and real assets are attractive for stable income and inflation hedging. ARM has been proactive: our MREIF expands access to affordable mortgages, tackling a critical structural need. Our private Debt fund open differentiated yield opportunities, and our deepening focus on alternatives enhances diversification and long‑term value creation.