A Guide To Investing In Stanbic Ibtc Mutual Funds

Stanbic IBTC Holdings is a financial institution that offers banking and financial services to individuals, businesses, institutions and corporations in Nigeria and abroad. The company offers a range of investment options, including the Stanbic IBTC Mutual Fund, which is designed to help individuals grow their wealth and achieve their financial goals. With a minimum investment amount of N5,000.00, individuals can choose from a variety of funds, including the Money Market Fund, Dollar Fund, Enhanced Fixed Income Fund, Nigerian Equity Fund, and more, each with its own investment strategy and risk profile.

The benefits of investing in the Stanbic IBTC Money Market Fund

The Stanbic IBTC Money Market Fund is a conservative, open-ended mutual fund with a range of benefits for investors. The fund offers a higher rate of return than a traditional savings account, with the added bonus of capital preservation. This means that investors can build their wealth while also having access to a steady stream of income.

The fund is ideal for those with a range of investment objectives, whether that be acquiring an asset, saving for school fees, or simply seeking financial freedom. The fund is also a relatively low-risk investment strategy, investing 100% of its portfolio in high-quality, short-term securities, such as Treasury Bills, Commercial Papers, and Fixed Deposits, all of which are rated "BBB" and above.

The fund is flexible, with a low minimum investment amount of N5,000.00, and a 30-day minimum holding period. The fund is also easily accessible, with the ability to subscribe, redeem, and top-up investments via an online portal or mobile application. Investors can also rest assured that their investment is safe and can be used to secure a loan with Stanbic IBTC Bank.

The Stanbic IBTC Money Market Fund is a great option for those seeking a conservative, yet rewarding, investment strategy.

How to open an account with the Stanbic IBTC Dollar Fund

To open an account with the Stanbic IBTC Dollar Fund, you need to meet certain requirements and follow specific procedures. Here is a detailed guide on how to open an account:

• Understanding the Fund: The Stanbic IBTC Dollar Fund is an open-ended Unit Trust Scheme that primarily invests in US dollar-denominated securities. These include Eurobonds, money market instruments, and foreign equities registered by the Securities and Exchange Commission of Nigeria. The fund aims to provide currency diversification, income generation, and stable growth in USD.
• Investment Requirements: To start investing in the Stanbic IBTC Dollar Fund, you need to meet the minimum investment amount of $100. Subsequent investments also have a minimum requirement of $100.
• Documentation: To open an account, you will need to submit the following documents:

• A duly executed subscription form.
• One passport photograph for each applicant.
• A government-issued identity card (such as a national ID card, driver's license, international passport, or voter's card).
• Proof of address showing your name and surname.

• Account Opening Process: Complete the Subscription Form and submit it at any branch of Stanbic IBTC in your country or region. You are not required to make any payments at this stage.
• Account Activation: After submitting the required documents, your account will typically be opened within one business day. Once your account is activated, you will receive your e-account number via email.
• Funding Your Account: To fund your new account, transfer the desired investment amount to the designated bank account using your e-account number as a reference. It's important to note that cash payments are not accepted.
• Online Access: You can access your mutual fund account through Stanbic IBTC's online platforms, including their Mobile App and Web Portal. This allows you to manage your investments and track your performance conveniently.

By following these steps, you can successfully open an account with the Stanbic IBTC Dollar Fund and start investing towards your financial goals. Remember to review the fund's terms and conditions, as well as the associated risks and potential benefits, before making any investment decisions.

The risk profile of the Stanbic IBTC Guaranteed Investment Fund

The Stanbic IBTC Guaranteed Investment Fund is ideal for investors looking for a fixed income investment with limited exposure to equities. The fund carries a certain amount of risk, as investors are exposed to the volatility of the stock market. However, it also offers capital preservation, guaranteeing the principal amount of the investment against diminution in value, provided it is held for at least three months.

The fund achieves this balance of capital preservation and growth by investing a minimum of 70% of its portfolio in high-quality bonds, which offer a stable and relatively safe investment option. Meanwhile, a maximum of 30% of the fund's assets are invested in money market instruments, including treasury bills, which provide liquidity and the potential for short-term gains. Additionally, a maximum of 10% of the fund can be invested in listed equities, allowing investors to take advantage of upswings in the stock market. This diversification across asset classes helps to manage risk and provide a more stable investment option.

The fund's aggressive risk profile is due to its significant allocation to equities and money market instruments, which are more volatile and carry a higher level of risk compared to fixed-income investments like bonds. However, the fund's capital preservation feature, which guarantees the initial investment, adds a layer of protection for investors, especially those seeking a more conservative approach.

Overall, the Stanbic IBTC Guaranteed Investment Fund offers a balanced approach to investing, providing both capital preservation and the opportunity for growth. While it carries a higher risk profile compared to some other mutual funds, the fund's diversification and capital preservation feature help to manage and mitigate potential losses.

The investment strategy of the Stanbic IBTC Enhanced Short-Term Fixed Income Fund

The Stanbic IBTC Enhanced Short-Term Fixed Income Fund is a mutual fund investment strategy that aims to provide competitive yields, liquidity, and safety for investors. The fund was launched in February 2021 and has a "Moderately Aggressive" risk profile. Here is a detailed overview of its investment strategy:

Investment Objective

The fund seeks to provide investors with competitive returns, liquidity, and safety by investing in a diverse range of short to medium-term securities.

Investment Strategy

The fund achieves its objectives by investing in a combination of various short to medium-term securities issued by Federal and State Governments, as well as Corporate entities. These securities include Treasury Bills, Commercial Papers, Fixed Deposits, and Short-Term Debt Instruments. The fund requires a minimum credit rating of "BBB" from at least one recognized local rating agency registered with the Securities and Exchange Commission (SEC) for its investments.

Investment Benefits

• Diversification and Risk Mitigation: By investing in a diverse range of assets, the fund mitigates investment risks and avoids concentration risk.
• Online Platforms: Investors can conveniently transact from anywhere using the fund's online platforms, including a mobile app and web portal.
• Suitability: The fund's array of investment products is designed to cater to diverse financial needs, allowing for easy subscription and redemption.
• Safety: Stanbic IBTC prioritizes the safety of investments.
• Capital Preservation: The fund focuses on preserving capital, offering a 90-day minimum holding period to encourage long-term investment.
• Competitive Returns: The fund aims to provide competitive returns, and investors can expect professional fund management.
• Loan Security: Investments in the fund can be used to secure loans with Stanbic IBTC Bank.

Investment Requirements

The Stanbic IBTC Enhanced Short-Term Fixed Income Fund has a minimum investment amount of N5,000.00, and a management fee of 1.25% per annum is charged. To open an account, individuals must provide the following documentation:

• One passport photograph
• A government-issued identity card (national ID card, driver's license, international passport, voter's card, etc.)
• Proof of address showing the applicant's name and surname

To initiate the investment process, individuals can complete the subscription form and submit it at any branch of Stanbic IBTC in Nigeria, along with the required documentation. It is important to note that cash payments are not accepted. Once the account is opened, investors will receive an e-account number and can transfer the investment amount to the designated bank account, quoting their e-account number as a reference.

For redemption of investments, the fund offers two options:

• Online Redemption: Investors can log in to their mutual fund account via the web or mobile app and initiate a redemption. The proceeds will be transferred to the nominated bank account within two working days. The daily limit for online redemption is N2,500,000.00.
• Branch Redemption: Investors can fill in a Redemption Form and submit it at any Stanbic IBTC branch in Nigeria. The proceeds will be transferred to the nominated bank account within five working days.

The Stanbic IBTC Enhanced Short-Term Fixed Income Fund offers a comprehensive investment strategy that focuses on providing competitive yields, liquidity, and safety. With its diverse investment portfolio, risk mitigation, and convenient online platforms, the fund provides a well-rounded approach to short-term fixed-income investing.

The ethical considerations of the Stanbic IBTC Shari’ah Fixed Income Fund

The ethical considerations of the Stanbic IBTC Shariah Fixed Income Fund are rooted in Islamic principles of investing and ethical values. The fund is designed for Islamic investors who wish to grow their capital while strictly adhering to the guidelines of Islamic finance. This means that the fund only invests in Shariah-compliant fixed-income securities, such as sukuk bonds and short-term Shariah-compliant instruments.

The fund's ethical approach is reflected in its investment strategy, which focuses on providing stable and competitive returns while maintaining a strong ethical stance. Specifically, the fund invests a minimum of 70% of its portfolio in Sukuk bonds, which are structured to comply with Islamic religious principles. These bonds are often used to fund infrastructure and development projects, providing investors with an ethical way to support economic growth. The remaining maximum of 30% of the portfolio is invested in short-term Shariah-compliant instruments, which may include fixed-term contracts that meet the eligibility criteria for Shariah compliance.

The fund's ethical considerations also extend to its operational aspects. The fund offers a simple, flexible, and convenient way for individuals, families, and corporates to maintain liquidity. It provides online platforms, including a mobile app and web portal, that allow investors to manage their investments from anywhere. Additionally, there is no minimum holding period, and the minimum investment amount is N5,000, making it accessible to a wide range of investors.

The Stanbic IBTC Shariah Fixed Income Fund's commitment to ethical values is further demonstrated by its exclusion of certain industries. Similar to other ethical funds offered by Stanbic IBTC, such as the Ethical Fund and the Imaan Fund, the Shariah Fixed Income Fund refrains from investing in businesses associated with activities like alcohol, tobacco, and gambling. This alignment with Islamic principles and ethical values makes the fund a suitable choice for investors seeking to grow their capital while staying true to their religious and ethical beliefs.

Frequently asked questions