FREQUENTLY ASKED QUESTIONS
Money Market Frequently Asked Questions
A. The FSL Money Market Fund is an open-ended mutual fund registered with the SEC as a Collective Investment Scheme. The primary objective of the Fund is to provide investors with capital preservation and steady streams of income derived from investment in money market instruments issued by the Federal Government and in highly rated instruments from financial and non-financial institutions rated by a registered rating agency as may be specified from time to time by the Commission.
A. The Fund is targeted at Retail, High Net Worth Individuals (HNIs), and institutional investors (firms, societies, religious bodies, employee schemes, amongst several others). Given the Fund’s competitive return, it is particularly suitable for investors who seek:
- A short to medium term investment horizon;
- Safety and preservation of capital;
- Liquidity and regular stream of income as the Fund is structured to pay dividends quarterly.
A. The Fund will invest in credit-rated Naira denominated high-quality money market instruments, fixed term deposits, treasury bills, issued by sovereigns, corporate entities, and other entities as permitted under section 171 (2) of the Investments and Securities Act.
A. There is no maximum amount you can invest; however, the minimum investment is ₦10,000. During the offer period, the minimum subscription into the Fund shall be ₦10,000 and in multiples of ₦5,000 thereafter.
A. Investors can purchase units of the Fund by completing an application form via the online portal.
A. 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’s office for processing. The redemption process should not exceed 5 days from the time the Fund manager receives your letter and fund statement. However, redemptions within 30 days from the date of subscription for units will attract a penal fee in an amount equal to 0.5% of the income accrued on the day of redemption, and the minimum permissible holding after partial redemption is 5,000 units or such units as advised by the Fund Manager from time to time.
A. Yes, you can increase your investment after the offer period in multiples of ₦5,000.
A. The FSL Money Market Fund will be managed by the FSL Asset Management Limited (“FSLAM” or “Fund Manager”), one of Nigeria’s leading asset management companies registered with the Securities & Exchange Commission (SEC) as a fund manager.
A. Unit Trust (Mutual Funds) in Nigeria are regulated by the Securities & Exchange Commission (SEC). Thus, the FSL Money Market Fund is registered with, and regulated by the SEC. The interests of the investors of the Fund are further protected by the Trustee (Leadway Capital and Trusts Limited), who supervises the activities of the Fund Manager. In addition to the above, an independent Custodian (UBA Plc - Global Investor Services) holds and safeguards the assets of the Fund. This structure creates control in the management of the Fund.
A. The fund’s strategy is tailored to positively perform in all market conditions generating consistent returns. Investment decisions will be based on in-depth research analysis, thorough due diligence, and continuous assessment of specific investments that offer the best prospects in the short term. Specifically, the Fund Manager will adopt the following investment strategy:
- Security selection – The fund manager will analyze each asset class to determine the securities that will be included in the fund. Certain factors such as the credit rating of the issuer, rating on the instrument, competitiveness of rate, and tenor of the instrument would be considered in selecting the securities.
- Asset Allocation - The asset allocation strategy for the Fund has been determined by the Fund Manager to balance the risk versus reward objectives and to ensure the Fund achieves its goals within the investment horizon.
A. The FSL Money Market Fund employs several risk management strategies, including diversification, active portfolio management, and market intelligence. The Fund Manager shall from time to time stress test the portfolio using various simulation scenarios to show any potential risk that could impact the Fund and report the result to the Investment Committee.
A. No. The return on the Fund is dependent on general trends in the money market from time to time. As the Fund Manager has no influence over changes in the market, it is therefore impossible to guarantee any rate of return on investment.
A. After payment confirmation, an e-certificate indicating the number of units held will be emailed to you. We also provide online access via our online mutual fund portal.
A. Dividends shall be paid quarterly to Unitholders.
A. The Fund will offer the following:
- Preservation of Capital
- Competitive interest rate
- Liquidity and Cash management diversification
- Fund under the management of competent professionals
- Affordability
- Tax advantage
- Convenience and flexibility in entry and exit
- Adequate regulatory monitoring
- Fund Management separate from custody of assets
EuroBond Fund Frequently Asked Questions
A. The FSL Eurobond Fund is an actively managed open-ended unit trust scheme registered with the SEC as a Collective Investment Scheme. The Primary objective of the Fund is to provide investors with capital preservation, liquidity, and diversification while providing competitive return on investment.
A. The Fund is targeted at Retail, High Net Worth Individuals (HNIs), institutional individuals, and Africans in the diaspora who have a medium to long-term investment horizon. The Fund is particularly suitable for investors seeking:
- Safety and preservation of capital;
- Liquidity and a regular stream of income as the Fund pays dividends semi-annually.
A. The Fund invests in FGN Eurobonds, Nigerian Corporate Eurobonds, and Cash.
A. There is no maximum amount you can invest; however, the minimum investment is $5,000. During the offer period, the minimum subscription into the Fund shall be $5,000 and in multiples of $1,000 thereafter.
A. Investors can purchase units of the Fund by completing an application form via the online portal.
A. Yes, you can sell your investment at any time by completing a redemption form and submitting it to the Fund’s office. The redemption process typically takes no more than 5 days from receipt of the request. Redemptions within 90 days of subscription attract a 0.5% penal fee, and a minimum holding of 5,000 units is required after partial redemption.
A. Yes, you can increase your investment after the offer period in multiples of $1,000.
A. The Fund is managed by FSL Asset Management Limited (FSLAM), one of Nigeria’s leading asset management companies, registered with the Securities & Exchange Commission (SEC).
A. The Fund is regulated by the SEC and monitored by Leadway Capital and Trusts Limited (Trustee) to ensure the protection of investors. UBA Plc (Global Investor Services) acts as the independent custodian for the assets of the Fund.
A. The Fund Manager adopts a top-down investment approach, conducting thorough research and considering macro and microeconomic factors to select securities. Continuous assessment of market conditions and investment prospects guides decisions.
A. The Fund employs various risk management techniques, including stress testing the portfolio using simulations to anticipate potential risks. These results are reported to the Investment Committee.
A. There is no minimum guaranteed rate of return. The return is influenced by trends in the money market and cannot be guaranteed.
A. After payment confirmation, you will receive an e-certificate via email indicating the number of units held. You can monitor your investment through our online mutual fund portal.
A. Dividends are paid semi-annually to Unitholders.
A. The Fund Benchmark is composed of 70% 3-year FGN Eurobond and 30% U.S. Treasury Bills. The Fund aims to achieve a yield 5% above this benchmark.
A. The benefits include:
- Preservation of capital;
- Competitive interest rates;
- Liquidity and diversification;
- Professional fund management;
- Affordability and flexibility;
- Tax advantages;
- Regulatory oversight by the SEC;
- Separate management of fund and custody of assets.