ARM Eurobond Fund: A Beautiful Cover for Falling Currency
Naira denominated asset has lost value following series of devaluations and it has made you poorer except you earn greenback. The best way to protect your naira assets is to invest in stronger currency, it would provide a cover against a falling currency.
Taking investment decisions cannot be done without considering the cost, and the benefits. If you have an investment in Eurobond, you are more likely to be on the positive side of the curve.
One of the many investment products you can use as a hedge against currency risks is available. For example, Asset and Resources Management (ARM) Limited operates a Eurobond fund – an open-ended, low-risk mutual fund.
The fund offers competitive returns compared to the average domiciliary deposit account. Something breaks in me when I remember my earnings value in dollar terms when I could convert N150 for a greenback.
Fast-forward to today, in a country where salary increment is a miracle, most of the working class have been technically reduced in financial terms amidst the exchange rate saga.
Here is the truth, devaluation is bad for many Nigerians. Just imagine you have to order a product from Amazon, you are disadvantage immediately such needs arise.
Having investment in the Eurobond fund is a good cover for the future. Naira historically has never gotten better. For the local currency, yesterday’s value has always been the best it has ever gotten. Tomorrow, Nigerians don’t really have hope Naira would become strong.
It is more of a pipe dream to think so. For Naira to strengthen, demand must be less than supply. That would mean a country that exports and earn big.
For the time you know this is not going to happen in this beautiful country, you might want to be rational by hedging against the falling currency.
ARM Asset Management team invests the fund in dollar-denominated Eurobond floated by the Federal Government of Nigeria and top-tier Nigerian corporates.
MarketForces Africa gathered that subscribers to the fund enjoy competitive returns on their US Dollars investment. The fund is more suitable for investors seeking medium to long-term capital growth
This is an affordable investment as you only need to make a minimum initial investment of $1,000 and additional contributions in multiples of $100.
For many Nigerians, that is a lot of money when you consider the volatile exchange rate. But there are advantages if such an amount can be put aside for specific future projects.
The fund will be managed by ARM professional fund management team with market certified expertise, making a good hedge against the depreciation of the Naira. The investment firm has traction and has delivered cutting edge services with well-designed investment/financial products.
As an investor, you will be entitled to the distribution of dividends of 75% of profit each year, while 25% will be automatically reinvested on their behalf in proportion to their unit holding.
However, you are given an opportunity to invest the dividends paid to you. As management’s allocation strategy, ARM Euro fund has a defined and approved allocation of funds amongst asset categories.
Read Also: How Weak Naira Affects Your Income, Assets, Finances
The company said its fund manager uses its expertise to determine where to invest in line with the approved asset allocation.
ARM Eurobond Fund: A Beautiful Cover for Falling Currency
