Understanding Mutual Fund

A ‘mutual fund’ is a pool of money from different people with the same objective. It gives you access to opportunities to grow your money that you wouldn’t normally have access to if you didn’t have a lot to invest.

Your money is pooled together with that of other investors, and spread over a range of asset classes such as bonds (and money market instruments), equities and cash. The collective assets in the fund are called a portfolio, and they are managed by an experienced fund manager on your behalf. For this service, the mutual fund manager charges a small annual fee known as a management fee.

Your investment in the fund is divided into shares, and the number of shares held represent your ownership stake of the funds overall assets, and the return those assets generate. The prices of these shares will fluctuate daily as the underlying value of the assets rises and falls and your individual stake will rise and fall accordingly.

WHO SHOULD INVEST IN A MUTUAL FUND?

Mutual funds are a great way to invest:

  • If you are looking to build a nest egg for the future
  • If you can only invest a small amount at a time

WHAT ARE THE KEY BENEFITS?

  • Lower risk because your money is spread over different companies and asset types. When the value of one asset in the fund falls, another may rise. This means your risk overall is significantly less than when you put your money in a single investment.
  • Better rates because by pooling money with other investors your combined buying power is greater than if you invested on your own and you have access to some assets and markets that you would not have if you were investing smaller amounts on your own.
  • Reduced costs because some costs and charges are spread across all investors in the fund. Therefore, you can carry out large transactions for much lower cost than if you were buying the assets directly.
  • Saved time and effort with an experienced manager who invests on your behalf. Your money is managed by a professional with expertise and access to market and research information you may not have, who is able to monitor the investment better because it is his full-time job.
  • Easy access to your money by being able to cash in your investment at any time. You can make additional contributions or withdrawals to your investment whenever you want.
  • Simple to use and monitor. You can make automatic transfers to or from your bank account, and check your funds performance figures conveniently online. You also receive regular reports on how your money has been invested, and can choose whether you want your returns to be paid out as income or automatically reinvested.

More about our mutual funds

ARM’s Guide to Mutual Funds

Mutual Funds: What are Fixed Income and Money Market Investments?

Fixed income refers to any type of investment that yields a pre-determined, regular or fixed return.
If a company wants to raise money to invest in new products, to make an acquisition, to buy equipment, it has two fundamental choices. It can either give away shareholding in return for investors funds, or it can leave its equity undiluted and promise instead to pay regular interest on money lent to it as well as return the original capital sum at the end of the loan period.
This latter method is usually called a bond as in my word is my bond. Governments can also raise money in a similar way in the form of Treasury Bills or Bonds.
Equally, a bank can offer a fixed rate of return on money you save with them (effectively you lend the bank your money.)
These are all examples of fixed income investments. Those investments which are short-term i.e. 12 months or less, are called money market investments.

It is useful to understand the terminology of fixed-term investments:

  • The principal is the amount that is being lent
  • The coupon is the interest rate that will be paid
  • The maturity is the date by which the capital sum must be re-paid
  • The issuer is the company or Government issuing the instrument

What are the different types of Fixed Income Investments available?

Fixed term securities offer different levels of return depending on the investment tenure and the degree of risk involved.

fixed income-money market

The following are short-term, money market instruments which are near-liquid and considered safe but, will not yield especially high returns:

  • Treasury Bills (T-Bills) are short-term debt instruments issued and guaranteed by governments in order to raise funds from the public. T-Bills are purchased at a discount and redeemed at full value at maturity. The difference between the value at maturity and the discounted price at which you purchased it – your profit as it were – is the equivalent of an interest payment.
  • Fixed Deposits are investments offered by commercial banks, with a fixed maturity date and interest rate. The interest rates offered will vary by the prevailing interest rate climate, the amount of money you invest and the length of time you are prepared to have the money locked away. These fixed deposits usually attract higher interest rates than T-bills because the risk of default is higher.
  • Commercial Paper (CP) is a short-term debt instrument issued by a company.
  • Bankers’ Acceptance is a short-term credit investment issued by a company and guaranteed by a bank.
  • Bonds, as described earlier, are debt instruments issued by governments and corporations. They have longer investment tenure and higher yields.
  • Bond prices have an inverse relation to market interest rates. In other words, if general market interest rates rise, then bond prices will fall and vice versa. You need to hold bonds until maturity to avoid any possibility of capital loss because if you sell them early in unfavourable conditions of high interest rates you could lose out.

What are their benefits of Mutual Funds?

  • Fixed Income securities offer a great deal of security, regularity and therefore peace of mind. However, they don’t offer the same levels of return as shares or private equity investments in successful companies.
  • They are also, depending on the length of time to maturity, easily liquidated.

Are they for me?

A component of fixed income investments can be useful within anyone’s portfolio to balance the overall risk/ return profile.
Fixed income investments generally become more relevant as your need for security increases. This often makes them more appropriate as one gets older. For example, a retired person can invest in a bond or fixed deposit and get a reliable income from the coupon / interest payment to cover his or her living expenses, knowing that the capital will be safely returned within a defined time-frame.
However, fixed return investments can be useful at any life stage depending on your goals.

What tips can ARM provide?

  • Fixed rate investments are suitable when you need security of return, but they are still not entirely risk free.
  • Remember that when inflation is high it can erode the value of interest payments.
  • Also consider carefully the fact that bond prices fall when interest rates rise.

How do I start which Mutual Funds?

Contact your ARM Wealth Advisor to discuss the suitability of Mutual Funds in achieving your investment objectives. You can also buy online.

About the ARM Aggressive Growth Fund

What is the ARM Aggressive Growth Fund?

The ARM Aggressive Growth Fund is an open-ended investment vehicle sponsored and managed by ARM Investment Managers.

How can I start an investment?

An investment in the Fund can be made by completing a subscription form and making payment into the designated bank account via convenient channels such as Cheque, Debit/Credit card, Quick teller, bank deposit, bank transfers, Direct Debits, and Mobile money.

Subscription forms are available at www.arminvestmentcenter.com or any ARM Investment Centre.

Completed subscription forms and payment instruments or evidence of online payment are required to be sent by mail to enquiries@arminvestmentcenter.com or to any ARM Investment Center nearest to you.

How much do I need to start the Aggressive Growth fund?

N50,000

Who can invest in the ARM Aggressive Growth Fund?

Everyone

How much can I invest in the Fund?

N50,000 initially and N10,000 thereafter

What is the investment objective of the Aggressive Growth Fund?

The Fund invests primarily in equities of companies quoted on the Nigerian Stock Exchange. The mix of assets in the Fund is aimed at providing investors with long term capital growth

What is the Fund’s asset allocation?

  • Equities 80% – 100%.

Who manages the Aggressive Growth fund?

The ARM Aggressive fund is managed by Asset & Resource Management Company Ltd (ARM), one of Nigeria’s leading asset management firms. ARM is registered with the Securities & Exchange Commission (SEC) as a Fund Manager.

Who monitors the Fund Manager’s activities?

Unit Trusts (Mutual Funds) in Nigeria are regulated by the Securities & Exchange Commission (SEC). Thus, the ARM Money Market Fund is registered with, and regulated by SEC. The interest of Investors in the Fund is further protected by the Trustee (First Trustees Nigeria Limited), who supervises the activities of the Fund Manager. In addition to the above, an independent Custodian (Citibank Nigeria Limited) will hold and safeguard the assets of the Fund. This structure creates control in the management of the Fund

Who are the Trustees of the Fund, and what is their role?

The Trustees are First Trustees Nigeria Limited.  The Trustees have a legal duty to protect the interest of the Unit-holders. Their activities will include on-going supervision of compliance with the investment policies of the Fund

What will I receive as evidence of my Investment in the Fund?

Every Unit holder shall be entitled to receive from the Fund Manager an Electronic Fund Statement for the number of units purchased. The statements shall be made available via email. In addition, investors will be able to access their account on line. Also, physical copies of the Fund statement will be available at all ARM Investment Centers.

What is a “Unit Trust”?

A Unit Trust (or Mutual Fund) is a pool of funds from several investors who share similar investment objectives. Their contributions are invested in various financial instruments and managed by a professional Fund Manager. Each investor becomes a unit holder in the Fund, that is, a part owner of the Fund. The units held confer certain rights of ownership on the investor such as participating in the income derived from the Fund’s investments

How can I access accrued income on my investment?

Dividends shall be paid at the end of every calendar quarter to all Unit holders. You have the option of either re-investing the dividend or requesting direct credit into your account. You are expected to provide bank details at the point of initial purchase of units of the Fund. In the event that a client part liquidates his investment before the end of a quarter, only the capital sum will be paid. The income earned to the liquidation date will be paid during the quarterly distribution. Only full liquidations before the end of a quarter will earn their full income.

What is the minimum guaranteed rate of return?

The Fund cannot guarantee a rate of return but is projected to be as competitive as the high-end returns from fixed income instruments available in the market. The return is based on interest rate trend in the financial market.

Do I have a say in what you invest my money in?

The fund has a discretionary mandate which means that, decisions are only made by the Investment Manager and are kept within the investment limits of the fund.

What are the benefits of investing in the ARM Aggressive Growth Fund?

  • Grow your wealth over the long term with returns above inflation
  • Earn multiple returns through capital appreciation and dividends

Can I exit my investment at any time?

Yes

How can I subscribe as a foreign investor?

The Fund assets are denominated in Naira and, as such, capital inflows by foreign investors who subscribe to the Fund shall be converted to Naira at the exchange rate as advised by the Fund Manager’s Bankers. Certificates of Capital Importation (CCI) shall be issued by the Fund Manager’s Bankers for foreign investor or by the Custodian to the Fund if the procurement of foreign investor so wishes. This certificate is necessary for procurement of foreign exchange at the official market for repatriation of dividends paid by the Fund and repatriation of proceeds from the redemption of Units. The bank transfer details for the Fund are indicated on the subscription form.

Know more about the ARM Ethical Fund

What is the ARM Ethical Fund?

The ARM Ethical Fund is an open-ended fund designed to enable investors acquire holdings in line with ethical Islamic investment principles.

How can I start an investment?

An investment in the Fund can be made by completing a subscription form and making payment into the designated bank account via convenient channels such as Cheque, Debit/Credit card, Quick teller, bank deposit, bank transfers, Direct Debits, and Mobile money.

Subscription forms are available at www.arminvestmentcenter.com or any ARM Investment Centre.

Completed subscription forms and payment instruments or evidence of online payment are required to be sent by mail to [email protected] arminvestmentcenter.com or to any ARM Investment Center nearest to you.

Who can invest in the ARM Ethical Fund?

Islamic investors who want long-term capital growth by investing strictly according to the principles of Islamic finance and ethical values

How much can I invest in the Fund?

Minimum initial investment:  N10,000

Minimum additional investment: N5,000

What is the investment objective of the Ethical Fund?

The primary objective of the Fund is to achieve long-term capital appreciation and income distribution through investments in a select portfolio of securities and assets in accordance with the principles of Islamic finance and ethical values

What is the Fund’s asset allocation?

  • Equities 30%-60%
  • Real Estate 20%-60%
  • Other Investments 10%-30%

Who manages the Ethical fund?

The ARM Ethical fund is managed by Asset & Resource Management Company Ltd (ARM), one of Nigeria’s leading asset management firms. ARM is registered with the Securities & Exchange Commission (SEC) as a Fund Manager.

Who monitors the Fund Manager’s activities?

Unit Trusts (Mutual Funds) in Nigeria are regulated by the Securities & Exchange Commission (SEC). Thus, the ARM Ethical Fund is registered with, and regulated by SEC. The interest of Investors in the Fund is further protected by the Trustee (First Trustees Nigeria Limited), who supervises the activities of the Fund Manager. In addition to the above, an independent Custodian (Citibank Nigeria Limited) will hold and safeguard the assets of the Fund. This structure creates control in the management of the Fund.

Who are the Trustees of the Fund, and what is their role?

The Trustees are First Trustees Nigeria Limited.  The Trustees have a legal duty to protect the interest of the Unit-holders. Their activities will include on-going supervision of compliance with the investment policies of the Fund.

What will I receive as evidence of my investment in the Fund?

Every Unit holder shall be entitled to receive from the Fund Manager an Electronic Fund Statement for the number of units purchased. The statements shall be made available via email. In addition, investors will be able to access their account on line. Also, physical copies of the Fund statement will be available at all ARM Investment Centers.

What is a “Unit Trust”?

A Unit Trust (or Mutual Fund) is a pool of funds from several investors who share similar investment objectives. Their contributions are invested in various financial instruments and managed by a professional Fund Manager. Each investor becomes a unit holder in the Fund, that is, a part owner of the Fund. The units held confer certain rights of ownership on the investor such as participating in the income derived from the Fund’s investments.

How can I access accrued income on my investment?

Dividends shall be paid at the end of every calendar quarter to all Unit holders. You have the option of either re-investing the dividend or requesting direct credit into your account. You are expected to provide bank details at the point of initial purchase of units of the Fund. In the event that a client part liquidates his investment before the end of a quarter, only the capital sum will be paid. The income earned to the liquidation date will be paid during the quarterly distribution. Only full liquidations before the end of a quarter will earn their full income.

What is the minimum guaranteed rate of return?

The Fund cannot guarantee a rate of return but is projected to be as competitive as the high-end returns from fixed income instruments available in the market. The return is based on interest rate trend in the financial market.

Do I have a say in what you invest my money in?

The fund has a discretionary mandate which means that, decisions are only made by the Investment Manager and are kept within the investment limits of the fund.

What are the benefits of investing in the ARM Ethical Fund?

  • Achieve long-term capital growth
  • Invest according to core Islamic values and beliefs

Can I exit my investment at any time?

Yes

How can I subscribe as a foreign investor?

The Fund assets are denominated in Naira and, as such, capital inflows by foreign investors who subscribe to the Fund shall be converted to Naira at the exchange rate as advised by the Fund Manager’s Bankers. Certificates of Capital Importation (CCI) shall be issued by the Fund Manager’s Bankers for foreign investor or by the Custodian to the Fund if the procurement of foreign investor so wishes. This certificate is necessary for procurement of foreign exchange at the official market for repatriation of dividends paid by the Fund and repatriation of proceeds from the redemption of Units. The bank transfer details for the Fund are indicated on the subscription form.

ARM’s Guide to Mutual Funds

What are Mutual Funds?

 

A Mutual Fund, or Unit Trust, is in many ways a simple, noble and ancient idea of people pooling resources – in this case their money – in order to leverage a better end result.

mutual finds pic

A Mutual Fund is a pool of money put together by many investors who share similar investment objectives. A professional Fund Manager is employed to use his skills to invest the pooled funds in various types of assets, such as, shares, bonds, and real estate, to maximise their returns.

To determine what each investor owns in the fund, the manager creates units in the fund and each unit is given a value. For example, a ₦1mm fund can have 100,000 units at a unit price of ₦10. An investor who contributes, say ₦100,000 would own 10,000 units in the Fund.

Each investor thus becomes a unit holder in the fund i.e. a shareholder or part owner of the fund (and its underlying assets). As the value of the fund increases or decreases as a result of changes in the value of assets in the fund, the unit price would also increase or decrease. The more you pay in, the more units you purchase. This is vital to understand because some people mistakenly see shares in a company, with their accompanying share certificates, as somehow more tangible than units in a fund. This is not the case as units in a fund are effectively shares of the tangible assets of that fund.

A Mutual Fund is protected by Trustees. Trustees hold the assets of the Fund on behalf of the investors and ensure that the Fund Manager complies with the investment policy guidelines defined in the Trust Deed. Within the Trust Deed and investment guidelines however, the Fund Manager is allowed to use his skill and judgement to maximise return on investment. Thus Mutual Funds are, in a nutshell, a tightly regulated form of entrepreneurial investment.

Investors get their returns via the income from dividends plus any growth in the underlying capital value of the investments.

What are the benefits of Mutual Funds?

  • Mutual Funds are preferable to savings products because their return on investment is, on average, higher.
  • Mutual Funds provide an effective way of spreading your risk because they invest in a number of securities within one type of asset class such as equities, and in different types of asset classes such as equities, real estate and fixed income. For this reason, they can be preferred to individual shares.
  • Mutual funds are cost-efficient. Pooling your funds with other investors provide a higher bargaining power than you could achieve on your own: the size and clout of the funds allow the managers to negotiate lower transaction charges when buying and selling investments.
  • Mutual Funds also allow you to delegate the selection and administration burden of managing equities and other investments to an expert, rather than struggling to understand it / handle it yourself.

What different types of Mutual Fund are available?

types of mutual funds

Blending equities with real estate, bonds and other fixed income vehicles in different proportions, allows a whole risk – return spectrum of Mutual Funds from Aggressive to Conservative. You should therefore think of different Mutual Funds as sitting along a spectrum from very risky / potentially very high return to cautious and more stable returns.

mutual funds types 2

Fixed Income or Bond Funds

These funds typically invest in corporate and government bonds with the predominant goal of generating income rather than capital growth. They usually also have a small equity component as well.

They can be volatile, even though it is less than that of funds invested mainly in equities.

Growth Funds

At the most aggressive end are the so-called “Growth Funds”. Some are called “Aggressive Growth Funds” which is self-explanatory and others that are steadier are called “Long-Term Growth Funds”.

These funds aim to maximise the capital value of the fund, and the units thereof, by predominantly investing in shares with a small portion of fixed income investments as a kind of anchor. These are the kinds of funds that benefit the most when the stock market is rising and equally suffer the most when it’s falling.

Growth Funds are not for the risk-averse although the risk is reduced if you are prepared to bide your time long enough to exit at the right point.

Income and Growth Funds

These kinds of funds are often invested equally in fixed income, shares and/or real estate. They predominantly try to grow capital value but also provide some income.

Income and Growth funds are good for investors with moderate risk tolerance.

Balanced Funds

As the name suggests, these funds balance fixed income and equities investments in order to equally provide income and long-term capital growth.

Is it relevant for me?

Mutual funds are a good investment vehicle to assist you in achieving your personal investment goals. Managing investments requires a commitment of time, resources and expertise that most individuals don’t have. When you invest in a mutual fund, you are hiring full-time professional managers to buy, sell and monitor your investments.

Investing in funds does not require so much money. For example you can invest in an ARM Discovery Fund for as little as ₦10,000!

Mutual Funds are relatively liquid so that you can think of them as a superior form of liquid savings.

What tips can ARM provide?

  • Think of Mutual Funds as an intelligent and affordable way to diversify your investments whilst relying on professional investors doing the hard work for you.
  • Also see them as a superior form of medium or long term savings.
  • You can blend them as a portfolio of Mutual Funds (and we can help you achieve this).
  • It is often advisable to change the profile of Mutual Funds in which you invest as you get older and your needs alter. Thus you might choose an Aggressive Growth Fund in the high income-generating, mid career phase of your life but switch to more Balanced or Fixed Income Funds as retirement approaches.

There are ways of maximising the value of your Mutual Funds. For example Automatic Investment Plans allow you to regularly pay into the funds from your bank accounts. The Plan also allows your dividends to be automatically re-invested in the fund thus maximising the opportunity to grow the capital value of your investments rather than drawing income.

You can, however, also set up programmed withdrawals of income from the funds. You can also enjoy Conversion Privileges if you invest in a family of funds and want to switch easily from one type of fund to another.

How do I start?

Visit an ARM Investment Center, talk to one of our Wealth Advisors, or for more info on our specific funds go to our Mutual Funds website at www.arminvestmentcenter.com or our Corporate site at www.arm.com.ng

Fixed Income and Money Market Investments

What are Fixed Income and Money Market Investments?

Fixed income refers to any type of investment that yields a pre-determined, regular or fixed return.

If a company wants to raise money to invest in new products, to make an acquisition, to buy equipment, it has two fundamental choices. It can either give away shareholding in return for investors funds, or it can leave its equity undiluted and promise instead to pay regular interest on money lent to it as well as return the original capital sum at the end of the loan period.

This latter method is usually called a bond as in my word is my bond. Governments can also raise money in a similar way in the form of Treasury Bills or Bonds.

Equally, a bank can offer a fixed rate of return on money you save with them (effectively you lend the bank your money.)

These are all examples of fixed income investments. Those investments which are short-term i.e. 12 months or less, are called money market investments.

It is useful to understand the terminology of fixed-term investments:

  • The principal is the amount that is being lent
  • The coupon is the interest rate that will be paid
  • The maturity is the date by which the capital sum must be re-paid
  • The issuer is the company or Government issuing the instrument

What are the different types of Fixed Income Investments available?

Fixed term securities offer different levels of return depending on the investment tenure and the degree of risk involved.

fixed income chart

The following are short-term, money market instruments which are near-liquid and considered safe but, will not yield especially high returns:

  • Treasury Bills (T-Bills) are short-term debt instruments issued and guaranteed by governments in order to raise funds from the public. T-Bills are purchased at a discount and redeemed at full value at maturity. The difference between the value at maturity and the discounted price at which you purchased it – your profit as it were – is the equivalent of an interest payment.
  • Fixed Deposits are investments offered by commercial banks, with a fixed maturity date and interest rate. The interest rates offered will vary by the prevailing interest rate climate, the amount of money you invest and the length of time you are prepared to have the money locked away. These fixed deposits usually attract higher interest rates than T-bills because the risk of default is higher.
  • Commercial Paper (CP) is a short-term debt instrument issued by a company.
  • Bankers Acceptance is a short-term credit investment issued by a company and guaranteed by a bank.
  • Bonds, as described earlier, are debt instruments issued by governments and corporations. They have longer investment tenure and higher yields. Bond prices have an inverse relation to market interest rates. In other words, if general market interest rates rise, then bond prices will fall and vice versa. You need to hold bonds until maturity to avoid any possibility of capital loss because if you sell them early in unfavourable conditions of high interest rates you could lose out.

What are their benefits?

  • Fixed Income securities offer a great deal of security, regularity and therefore peace of mind. However, they dont offer the same levels of return as shares or private equity investments in successful companies.
  • They are also, depending on the length of time to maturity, easily liquidated.

Are they for me?

A component of fixed income investments can be useful within anyone’s portfolio to balance the overall risk/ return profile.

Fixed income investments generally become more relevant as your need for security increases. This often makes them more appropriate as one gets older. For example a retired person can invest in a bond or fixed deposit and get a reliable income from the coupon / interest payment to cover his or her living expenses, knowing that the capital will be safely returned within a defined time-frame.

However, fixed return investments can be useful at any life stage depending on your goals.

What tips can ARM provide?

  • Fixed rate investments are suitable when you need security of return, but they are still not entirely risk free.
  • Remember that when inflation is high it can erode the value of interest payments.
  • Also consider carefully the fact that bond prices fall when interest rates rise.

How do I start?

Contact your ARM Wealth Advisor to discuss the suitability of fixed income investments in achieving your investment objectives.

Facts about the ARM Money Market Fund

Q: What is the ARM Money Market Fund?

The ARM Money Market Fund is an open ended fund authorised and registered in Nigeria as a Unit Trust Scheme under Section 160 of the Investment and Securities Act 2007. The primary objective of the Fund is to provide a steady stream of income to investors by investing in high quality, short term money market instruments and government securities which include:

  • Bankers’ Acceptances, certificates of deposits, commercial papers, collaterised repurchase agreements, etc.
  • Deposits (Fixed/Tenured) with eligible financial institutions
  • Short term debt securities issued or guaranteed by the Federal Government of Nigeria
  • Other instruments introduced and approved by the Central Bank of Nigeria (CBN) from time to time
  • Other money market or fixed income instruments in which the Fund is permitted to invest under the trust Deed The Fund has an Aa(f) rating from Augusto & Co.

Q: What is a “Unit Trust”?

A Unit Trust (or Mutual Fund) is a pool of funds from several investors who share similar investment objectives. Their contributions are invested in various fi nancial instruments and managed by a professional Fund Manager. Each investor becomes a unit holder in the Fund, that is, a part owner of the Fund. The units held confer certain rights of ownership on the investor such as participating in the income derived from the Fund’s investments.

Q: What is the investment objective of the Money Market Fund?

The Fund seeks to provide capital preservation, income and liquidity to risk averse investors. The Fund Manager seeks to attain these objectives within an acceptable level of investment risk.

Q: What is the Fund’s asset allocation?

The Fund will invest between 25% – 95% of its total assets in short term government securities such as Treasury Bills, and 5% – 75% in other approved money market instruments.

Q: Who manages the ARM Money Market Fund?

The ARM Money Market Fund is being managed by Asset & Resource Management Company Ltd (ARM), one of Nigeria’s leading asset management companies and Manager of the ARM Discovery Fund, the ARM Aggressive Growth Fund and the ARM Ethical Fund. ARM is registered with the Securities & Exchange Commission (SEC) as a Fund Manager.

Q: Who monitors the Fund Manager’s activities?

Unit Trusts (Mutual Funds) in Nigeria are regulated by the Securities & Exchange Commission (SEC). Thus, the ARM Money Market Fund is registered with, and regulated by SEC. The interest of Investors in the Fund is further protected by the Trustee (First Trustees Nigeria Limited), who supervises the activities of the Fund Manager. In addition to the above, an independent Custodian (Citibank Nigeria Limited) will hold and safeguard the assets of the Fund. This structure creates control in the management of the Fund.

Q: Who are the Trustees of the Fund, and what is their role?

The Trustees of the Fund is First Trustees Nigeria Limited a subsidiary of First Bank of Nigeria Plc. The Trustees have a legal duty to protect the interest of the Unit-holders. Their activities will include ongoing supervision of compliance with the investment policies of the Fund.

Q: How much can I invest in the Fund?

There is no maximum amount you can invest, however, the minimum initial investment is N1,000, while additional investments shall be amounts not less than N500 and in multiples of N500.

Q: Who can invest in the ARM Money Market Fund?

Anyone can invest in the Fund. The Fund would be attractive to all investors who desire a steady stream of income and have low risk appetite. The Fund is structured to pay dividends quarterly. High net-worth individuals with available short-term cash balances can also take advantage of the Fund to earn higher rates of return. Institutional clients who desire liquidity and easy accessibility to their funds with competitive returns can also take advantage of the Fund. The Fund is open to individuals (irrespective of nationality), institutions, entities, firms, societies and employee schemes amongst others. The Fund accepts participation of foreign and non-resident investors.

Q. How can I start an investment?

An investment in the Fund can be made here or by completing a subscription form and making payment into the bank account on the next page via convenient channels such as Cheque, Debit/Credit card, Quick teller, bank deposit, bank transfers, Direct Debits, and Mobile money. Completed subscription forms and payment instruments or evidence of online payment are required to be sent by mail to enquiries@arminvestmentcenter.com or to any ARM Investment Center nearest to you.

  • Account Name:  ARM Money Market
  • Fund Bank: Guaranty Trust Bank
  • Account Number: 0124516495
  • Sort Code: 058-152052

Q: How can I subscribe as a foreign investor?

The Fund assets are denominated in Naira and, as such, capital inflows by foreign investors who subscribe to the Fund shall be converted to Naira at the exchange rate as advised by the Fund Manager’s Bankers. Certificates of Capital Importation (CCI) shall be issued by the Fund Manager’s Bankers for foreign investor or by the Custodian to the Fund if the procurement of foreign investor so wishes. This certificate is necessary for procurement of foreign exchange at the official market for repatriation of dividends paid by the Fund and repatriation of proceeds from the redemption of Units. The bank transfer details for the Fund are indicated on the subscription form.

Q: What will I receive as evidence of my investment in the Fund?

Every Unit holder shall be entitled to receive from the Fund Manager an Electronic Fund Statement for the number of units purchased. The statements shall be made available via email. In addition, investors will be able to access their account on line. Also, physical copies of the Fund statement will be available at all ARM Investment Centers.

Q: Do I have a say in what you invest my money in?

No. The Fund has a defined and approved allocation of funds amongst asset categories. The Fund Manager uses its expertise to determine where to invest in line with the approved asset allocation.

Q: What is the minimum guaranteed rate of return?

The Fund cannot guarantee a rate of return but is projected to be as competitive as the high-end returns from fixed income instruments available in the market. The return is based on interest rate trend in the financial market.

Q: How can I access accrued income on my investment?

Dividends shall be paid at the end of every calendar quarter to all Unit holders. You have the option of either re-investing the dividend or requesting direct credit into your account. You are expected to provide bank details at the point of initial purchase of units of the Fund. In the event that a client part liquidates his investment before the end of a quarter, only the capital sum will be paid. The income earned to the liquidation date will be paid during the quarterly distribution. Only full liquidations before the end of a quarter will earn their full income.

Q: Can I exit my investment at any time?

Yes, you can sell your investment to the Fund at any time. You will be required to complete and execute the redemption form. This document should be returned to the Fund Manager’s office or sent to the email stated at the back of the document. The redemption process should not exceed one working day from the time the Fund Manager receives your executed redemption form.

Q: What are the benefits of investing in the ARM Money Market Fund?

  1. Competitive returns
  2. Capital preservation and safety
  3. Easy mode of entry and exit
  4. Competent professional Fund Managers
  5. Quarterly payment of dividends – a steady stream of income
  6. Requires initial investment of a minimum of N1,000 only
  7. Additional contributions as little as N500 via convenient channels such as online transfer, mobile money, etc

Q: How can I keep track of my investment?

The Fund’s price will be maintained at N1. Offer and Bid Prices will remain the same. The 7-day effective Rolling Yield of the Fund will be communicated by email and hosted on the ARM Investment Center website.