This post was birthed as a result of my email conversation with Mr Andrew Adeoti, a First Bank capital Staff

One of the inevitable advice you can not shy away from if you want to undertake the investment path as way to add to your income is RISK.

What is Risk? Risk is the possibility that your return on investment at the end of a proposed time horizon may not be equal to what you projected.

Before you invest your money, you have to see the estimated future return on investment. Risk is completely different from Loss as it tells you that your return may not be equal to your expected return.

In its resolve to bolster wealth creation through specialized products, FBN Capital, the Investment and Asset Management business of the First Bank Group has launched three funds - the FBN Money Market Fund, Heritage Fund and FBN Fixed Income Fund

Here are investment you can undertake and be assured of a consistent return on investment at little or no Risk.

First Bank Money Market Fund

The FBN Money Market Fund is a Securities and Exchange (SEC) authorized 'Collective Investment Scheme'. It pools investment funds to invest in a wide range of very liquid short term money market instruments. Anyone can invest any amount at any time, beginning from N5,000 

Investment Objective To achieve a high level of income obtainable from investments in short term securities that is consistent with prudent investment management, the preservation of capital and maintenance of liquidity.
Typical Investments:
  • Treasury Bills
  • Commercial Papers
  • Bankers Acceptances
  • Fixed and Term Deposits
  • Certificate of Deposits
  • Investment grade less than 1 year Government and Corporate Bonds
Target Investors
  • Individual Investors
  • High Networth Individuals
  • Institutional Investors
  • Investors with low risk appetite
  • Investors who require liquidity
  • Investors who wish to benefit from wholesale deposit return
Benefits
The Fund offers investors exposure to short term and liquid money market Instruments. Yields on investments provide portfolio diversification as well as the ability to gain exposure to different sectors of the economy. In addition, as an open-ended fund, investors are able to subscribe to and redeem units on any business day. Investors purchase units in the fund directly from the fund itself rather than from existing unit holders. 


The Fund looks to benefit from FBN Capital's investment process, which combines our top-down views on the macroeconomic environment with proprietary local bottom-up analysis of credit quality and market factors including supply, demand and liquidity by our credit analysts and markets team. 


See fact sheet here

The First Bank Fixed Income Fund


The FBN Fixed Income Fund is a Securities and Exchange (SEC) authorized 'Collective Investment Scheme'. It invests largely in long tenured debt instruments. Anyone can invest any amount at any time, beginning from N50, 000. Investment Objective: The Fund aims to achieve attractive long term returns by investing in a diversified portfolio of Federal Government, State Government and Corporate Bonds, whilst maintaining liquidity and preserving capital. 

Typical Investments:
  • Federal Government Bonds
  • State Government Bonds
  • Corporate Bonds
  • Euro Bonds
  • Treasury Bills
  • Commercial Papers
  • Bankers Acceptances
  • Fixed Term Deposits
In selecting securities for the portfolio, the Fund Manager shall seek to achieve an investment objective for unit-holders which shall have as its primary objective a reasonable level of current income and maximum stability and preservation of the capital invested.
Target Investors
  • Individual Investors
  • High Net worth Individuals
  • Institutional Investors
  • Investors with low risk appetite
  • Investors who require liquidity
Benefits The Fund offers investors efficient exposure to a basket of high yielding government and corporate debt instruments. Fixed Income Investments can provide portfolio diversification as well as the ability to gain exposure to different sectors of the economy. Active valuation of all sectors and individual issuers will be used in an effort to provide potential returns in excess of the overall Fixed Income market. 

As an open-end fund, investors are able to subscribe to and redeem units on any business day. Investors purchase units in the fund directly from the fund itself rather than from existing unit holders while offering an opportunity to achieve good returns from a diversified portfolio of investment. 

The aim of the Fund is to maximize investment returns, which will consist of a combination of interest income and capital appreciation by investing in a diversified portfolio of high quality fixed income securities and debt obligations issued by government, government related issuers and corporate entities as well as a portion in money market instruments. 

The Fund looks to benefit from FBN Capital's investment process, which combines our top-down views on the macroeconomic environment with proprietary local bottom-up analysis of credit quality and market factors including supply, demand and liquidity by our credit analysts and markets team.

See fact sheet here

The First Bank Heritage Fund



The FBN Heritage Fund is an open-ended SEC registered mutual fund. The fund is balanced in its asset allocation structure and invests between the ranges of 20-65% in stocks; 10-25% in quality fixed income instruments (bonds); 10-75% in money market instruments and maximum of 10% in real estate investments. 

Investment Objective: The primary objective of the fund is to maximize investment returns through a combination of growth and income. Accordingly, the fund aims to achieve long term capital appreciation of its assets through investment in a portfolio mix of high quality equity securities quoted on the stock exchange diversified with investment grade government and corporate bonds. 

Typical Investments:
  • High quality quoted stocks on the NSE
  • Federal Government Bonds
  • State Government Bonds
  • Money Market Instruments
  • Real estate investments and securities
  • Other securities specified under the trustees act as well as other securities approved by the fund manager in conjunction with the trustee and the commission
Asset Allocation Ranges
  • Equity 20-65%
  • Fixed Income 10-25%
  • Money Market 10-75%
  • Real Estate 0-10%
Target Investors
  • Individuals
  • High Net worth Individuals
  • Institutional Investors
  • Investors with low risk appetite
  • Investors who require liquidity
Anyone can invest any amount anytime beginning from N50,000 

Incentives/Benefits An investment in the fund provides the opportunity to spread investment risks over carefully selected securities. It also provides access to good returns from holding securities for numerous issuers, which may not otherwise be available in significant quantities, to individual investors. 

See fact sheet here 

How to get started

Here are the requirements to investing in First Bank Fund.


Contact: channelmgt@fbnquest.com

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