FBN Nigeria Eurobond (USD) Fund Mitigating Minimum Entry Investment Required for Eurobonds


Friday, October 12,  2018 / 05:05 PM / FBNQuest Research  


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. 

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 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 expect to 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% in its second year. The total return of from inception in January 2016 to 20th of September 2018 is 24.6% 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. 

With a minimum requirement of only USD2,500, an individual or corporate can invest through the fund in a broad range of Eurobond instruments which typically would require a minimum investment of USD200,000. The FBN Nigeria Eurobond (USD) Fund also provides a hedge against foreign exchange risk, and supports investors’ objectives to maintain portfolios across currencies.  

Managing Director, FBNQuest Asset Management, Mr. Ike Onyia 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. Corporate organisations can subscribe to this Fund with a minimum amount of $100,000.


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