FBNQuest slashes minimum entry for investment in Eurobonds

FBNQuest, the investment arm of FBN Holdings has slashed entry requirements for investment in its FBN Nigeria Eurobond Fund to only $2,500 for individuals and $100,000 for corporates. Typically to invest through the fund into a broad range of Eurobond instruments require a minimum of $200,000.

The investment house noted that the Nigerian investment market is rich and viable, with the money market yields relatively high and quite attractive compared to global interest rates.

“There has never been a better time for Nigerians, as well as foreign investors, to tap into the strength of the Nigerian investment story. The bonds market is on a strong growth course, equities have a strong long-term potential, and investment options are attractive for offshore investors,” a statement from the company read.

“If you are looking for new ways to invest your US Dollars (USD) in the ever-changing economic environment, the FBN Nigeria Eurobond (USD) Fund is a credible option,” the statement read further, adding that the Fund, which was Nigeria’s first US dollar denominated mutual fund, invests in Eurobonds (USD denominated debt instruments) issued by Nigerian Sovereign and Corporates.

The Fund generates income as well as capital appreciation, so customers can invest their USD directly and receive attractive returns in the same currency as their initial investment.

The FBN Nigeria Eurobond (USD) Fund delivers strong and consistent performance, recording returns of 7.0% in its first year and 12.2 percent in its second year. The total return of from inception in January 2016 to 20th of September 2018 is 24.6 percent in USD. This simply means that USD invested in the FBN Nigeria Eurobond Fund has returned positive growth in that time period, which the investors have enjoyed.

The FBN Nigeria Eurobond (USD) Fund also provides a hedge against foreign exchange risk, and supports investors’ objectives to maintain portfolios across currencies.

Ike Onyia, managing director, FBNQuest Asset Management, revealed that the Fund provides diversification benefits, as the portfolio invests in Eurobonds from different issuers which reduces risk.

According to him, “when you compare the returns on this Fund with returns on an offshore savings/checking account or USD domiciliary account, you will find that the FBN Nigeria Eurobond (USD) Fund offers competitive returns.

He further emphasized that the Fund is also not only for individual investors, but is open to corporate organisations who have USD liabilities and are looking for dollar investments that can offer competitive returns.