Who should invest in the Portfolio?
The investment is ideal for investors who have dollar denominated income and wish to invest in dollars, or investors with dollar denominated liabilities and would like to hedge their foreign exchange risk, while optimising their returns.
Benefits of the portfolio:
Liquidity Investors are able to access their funds easily, subject to the completion of the respective minimum holding periods.
AffordabilityThe portfolio represents an investment opportunity that allows investors earn steady income without needing to make substantial initial outlay
Professional ManagementThe portfolio managers are skilled and experienced professionals and will bring this expertise to bear in the management of the portfolio.
Performance MonitoringAn Investment Committee will monitor the portfolio activities and performance on a regular basis.
Learn about Dollar Portfolio
The investment in the portfolio involves a number of risks; hence investors should be willing to accept a high degree of volatility in the price of the units and the possibility of losses. Investors should consider these risks factors.
Market risk is the risk of losses arising from the movement in interest rates and prices. The changing interest rate could translate to unrealized gain or losses. However, the fund manager uses different strategies to achieve its goal of absolute return to investors; but in general, there is no guarantee that these strategies will not result in losses in a volatile or declining market. However, a portfolio that holds all securities to maturity is immune from market risk.
Credit risk refers to the creditworthiness of the issuers of the securities in the portfolio and their ability to make timely interest payments; and to pay the face value on the maturity date. If the security issuer is unable to repay principal or interest on time, the issuer is said to be in default; and such event could adversely affect the portfolio.
The portfolio is subject to various forms of regulations and may have adverse implications. The Central Bank of Nigeria (CBN) may from time to time, issue new regulations and guidelines which may have direct or indirect impact on foreign currency domiciled securities. The regulations issued by the CBN to defend the currency, manage the country’s external reserves, inﬂation or spur economic growth may negatively impact the portfolio performance. Additionally, regulators such as Securities and Exchange Commission from time to time, issue circulars that may also impact the portfolio’s performance. These regulations may inadvertently, lead to higher cost impact on the portfolio. This risk may arise from the possible breach of regulatory guidelines or requirements. There is also the risk that possible amendments to the local and foreign legislation (including tax legislation), may cause additional expenses for the fund.
This is the risk that a signiﬁcant portion of the investment within the fund will not be readily converted to cash when required. The units may not be easily or readily tradable due to the quantum held and/or adverse market conditions. There is also the possibility of not being able to complete redemption request within the stipulated time as a result of the relative liquidity or minimum lot size with the Eurobond market
The performance of the fund may be affected by changes in the economic environment and equity market conditions, political developments or changes in legislation and regulatory requirements. Country risk events may include sovereign defaults, banking or currency crises, social instability and changes in government policies such as expropriation, nationalisation and the conﬁscation of assets.
Money Market Security
Minimum Investment AmountAdditional Investment($1,000)
Agusto & Co Rating
AXA Mansard Investments Limited (AXA MIL) is duly registered by the Securities and Exchange Commission of Nigeria as Fund/Portfolio Managers. AXA MIL is a wholly owned subsidiary of AXA Mansard Insurance Plc. a member of the AXA Group - the worldwide leader in insurance and asset management with assets under management of 157,000 employees Euros 1.4 trillion serving 103 million clients in 59 countries. A.M. Best rating for AXA Mansard is BB+