Author: ARM

Ask Shade About Trusts: Is It Right to Name My Son as My Beneficiary and not My Wife?

A trust is an arrangement in which an individual’s assets are transferred to a trustee to hold for the benefit of named beneficiaries. With a trust, you can not only ensure that your wealth is preserved for your son, you can even pass this wealth down through generations.

Hello Shade,

Is it wrong to name my son as a beneficiary in important documents instead of my wife? It’s not like I don’t trust my wife, it’s just that I can’t gamble with the future of my only son. What’s your professional advice please?

– Dr. Duke, Calabar.

***

Hello Dr. Duke,

I must commend your eagerness in ensuring the future of your son, rather than leaving fate to decide.

The subject of naming beneficiaries to one’s assets is one that can neither be judged as right or wrong. However, your choice of beneficiaries should not only be influenced by the prevailing state of affairs of your family, but the probabilities of such benefits extending to your actual beneficiary.

Although there are no restrictions on naming your son as a beneficiary of your assets, it is important to note that certain measures can be taken to ensure that your son does not squander assets appropriated for his welfare as a result of his level of financial maturity, especially if your son is still a minor (although not stated in your text).

I also recognise your concerns with naming your wife as beneficiary of your assets for onward transfer to your son, as this could jeopardise the chances of these assets being eventually passed to your son in a situation where your wife either remarries or is unable to complete the asset transfer during her lifetime.

Therefore, in such cases of uncertainty, a trust would be most appropriate in ensuring that your assets are effectively transferred to your son when you deem it necessary and in what proportion you may prefer.

It is my advice, therefore, that you carefully assess both options and choose which best suits your intention and family.

Cheers!
Shade

Speak to us today or visit our website at www.armtrustees.com

Now or Later?

Derick and Raymond have been best of friends from their university days as they shared similar vision and life aspirations. This bond is evident in their career aspiration as they both gained employment in the same organization. Tenacious in realizing their ambitions, they pursued their career goals with every sense of commitment and were consequently rewarded with accelerated promotions and attractive salary packages.

Derick was advised of voluntary contributions by his Pension Fund Administrator (PFA) as an additional means of investment towards retirement. He was fascinated by the attractive benefits of having voluntary contributions asides from his statutory monthly contributions, being remitted into his Retirement Savings Account (RSA) by his employer. Basking in excitement, he decided to share the information with his bosom friend Raymond who immediately committed to the idea without further enquiry with the PFA having heard of the contingent 50% withdrawal of each lodgment retained in the RSA for a minimum of two years.

Derick unlike Raymond sought for details to understand voluntary contributions better, as an investment opportunity. The PFA official exposed Derick to the voluntary contributions tax benefit, emphasizing that as an active contributor, tax would be applied on the income earned when withdrawal is less than five years from the date the voluntary contributions was remitted into the RSA. However, voluntary contributions clocking five years and above in the RSA would be exempted from tax deductions. The possibility of tax exemptions, the option of using voluntary contribution to augment pension at retirement and other gainful benefits of voluntary contribution aided Derick in making an informed decision to sign up.

Four years down the line, Raymond was eager to withdraw from his voluntary contributions as he had dreamt of owning another luxury car and the contingency portion of his voluntary contributions would afford him enough funds to translate his dream to reality. He approached his PFA requesting to withdraw and was presented with the voluntary contribution consent form that highlighted the value eligible for withdrawal. Raymond having sighted the huge sum eligible for withdrawal, signed the consent form and applied without raising any concerns despite the PFA official’s attempt to educate him on the imminent tax benefit he would enjoy if he retains the voluntary contributions for a minimum period of five-year remittance.

Moments after the purchase of Raymond’s dream car, he embarked on a cruise with his bosom friend Derick. While on the cruise, he briefed Derick on the withdrawal of his voluntary contributions and how he expended it towards the purchase of his new car. Thereafter, Derick updated him of his plan to retain his voluntary contribution for a longer period in order to enjoy the full benefit of retaining his voluntary contribution beyond five years and possibly till retirement.

At this point, Raymond resigned to his thoughts thinking of the further benefits of voluntary contributions.

Key Highlights:

Voluntary Contributions equal or more than five years are exempted from tax.
Voluntary Contributions can serve as a viable investment option
Due consultation with your PFA would aid informed decision regarding your RSA
Embrace the voluntary contribution self-service portal for a seamless service delivery

To learn more about Additional Voluntary Contribution, visit this page.

What You Need To Know About Airtel IPO

airtel ipo

Airtel Africa Plc released its prospectus for a global Initial Public Offer (IPO) of ordinary shares worth $750mn (N270.0bn). The offer size translates to an addition of 595.2 million to 744.0 million ordinary shares to its current shareholding.

The Company expects to be admitted to the premium listing segment of the main board of the London Stock Exchange (LSE) at an offer price ranging between £0.8-£1.0/share. Also, the offer price for the Nigerian issue is expected to be within the range of N363 and N454/share, scheduled for listing on 4^th of July.

KEY INFORMATION FOR INVESTORS

ISSUER – Airtel Africa Plc
DOMICILE AND LEGAL FORM OF ISSUER – the United Kingdom, Public Company limited by Shares
ISSUING HOUSES – Barclays Securities Nigeria Limited and Quantum Zenith Securities & Investments Limited
METHOD OF OFFER – By way of book building
CURRENCY OF ISSUE – Nigerian Naira The currency of issue of Offer Shares sold pursuant to the Nigerian Offer shall be Naira.
OFFER PRICE – ₦363 to ₦454 (80 pence to 100 pence) The Offer Price for Offer Shares sold pursuant to the Nigerian Offer shall be determined by reference to the £:US$ last practicable date prior to pricing and may, therefore, differ from the indicative range set out herein
OFFER SIZE – 501,125,542 to 716,406,927 ordinary shares.
PURPOSE – The sole purpose of the issue is to deleverage the company’s balance sheet.
TYPE AND CLASS OF SECURITIES BEING ADMITTED TO TRADING – Ordinary shares of US$1.00 each ranking pari passu with other issued Ordinary Shares of the issuer
FUNGIBILITY STATUS: The shares listed on the NSE are fungible which means the shares can be traded on the London stock exchange (LSE)
NIGERIAN ADMISSION – Application has been made to Nigerian SEC and stock exchange (NSE) for registration of the Ordinary Shares set to be issued in connection with the offer.
EXPENSES CHARGED TO THE INVESTOR NOT APPLICABLE. – No expenses will be charged by the Company to any investor who purchases the Nigerian Offer Shares pursuant to the Nigerian Offer

To invest in Airtel shares, sign up at www.armstocktrade.com if you don’t have an account with us. Already a member? Log on to our portal to start trading.

Need help? Contact us via:
Email: customerservice@armsecurities.com.ng
Phone no: +234 (1) 2701096, 2701653; 0700 CALLARM (0700 225 5276)

Baby Juliet’s Future

When 34-year-old Damola gave birth to her daughter, she felt that her life was finally complete. Baby Juliet was the apple of her mother’s eyes and Damola spared no expense in giving her the very best. As a single parent, it wasn’t easy for Damola to cope with the demands of heading the Customer Service department at work, building her side hustle and raising a child alone, but she faced these responsibilities like a superwoman.

Her friends and family tried to pitch in as often as possible but in the end, the bulk of the work lay with the mother of the child. Soon, Baby Juliet was old enough to go to school and what a rude shock Damola got when school fees, books, lessons and more were calculated. It would be a little cheaper should she opt for just any school, but she needed a school that had a good pedigree and was in close proximity to her office to enable her juggle movements seamlessly. The cost per term for Baby Juliet’s KG class came to N95000 when everything like music lessons, swimming classes, dance classes, books and more were calculated. But Damola wanted the best for her baby so she went with it.

But she eventually did some hard thinking. With each year her baby grew and with each new class she entered, she’ll be required to pay higher fees and maybe enroll in other extra-curricular activities which will definitely make fees much higher. She needed a sustainable plan to keep the level of education she desired for baby Juliet up so she called up her best friend Zara and told her what she had been thinking.

“Zara, I’ve done my math and the way things look, I think I need a good plan in place if I really want my baby to get the Ivy League education I plan for her. Do you know anyone who is an expert in these things?” she asked.

“Don’t think too much Dammy. I think I’ve come across one before. I was reading an article on Bella Naija the other day and this Trust Expert on the column Ask Shade was advising a woman with a similar problem. I think her advice will work for you too.” Zara responded.

“Oh really? What did she suggest to the woman?” Damola asked.

“She asked her to consider getting an Education Trust for her child which will cater to every educational needs of her child to whatever level she so desires. Interestingly, she mentioned that the Trust can also comprise of a lifestyle component to provide for other needs of the child like school trips, excursions or vacations.” Zara responded.

“This has a good ring to it” Damola replied. “What do you think babe? Should I give it a try?” she asked.

“Wait, are you really asking that Dammy? I think you should totally do that and enjoy peace of mind jare. Since me I’m still single and seriously searching, I will just pen it down as something to consider when I finally catch Mr. Right and have our golden baby…haha” Zara said.

“Crazy babe. So Mr. Right is now a fish you want to catch abi” Damola queried playfully…

(The two chat on excitedly about other matters…The End)

Secure your child’s educational future with an Education Trust today, not tomorrow, today!

Stock Recommendation for the Week , June 10

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.

Art

A tale of the triplets

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?

Bottom Line:

The post A tale of the triplets appeared first on Realising Ambitions.

Art

I Stopped Being A Danfo Slay Queen

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!

The post I Stopped Being A Danfo Slay Queen appeared first on Realising Ambitions.

Art

Just like a scene from the movies…

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.

Set a Will up in minutes at www.armtrustees.com/easywill

The post Just like a scene from the movies… appeared first on Realising Ambitions.

Art

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.

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Art

4 months and it begins again…

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.

Start saving for September at www.arminvestmentcenter.com

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