I sat pondering over the many decisions I had to make as a wife, - TopicsExpress

UBA Asset Management Limited

I sat pondering over the many decisions I had to make as a wife, parent, sister, daughter, volunteer, etc and each one seemed to have a common denominator, nance! Many times, the things we worry most about are the ones over which we feel powerless to inuence or change. I wondered therefore why I was worrying about money because as a banker you would think I would at least have control over ... (you guessed it) nance! So often, we make choices that impact future decisions without knowing it. A good example is the choice an old friend made to save N1,000 per day (basically chicken pie and drinks money) over a period of time. He got so used to the habit that he did this for about 2 years till one day he needed to make a decision about his childs school fees and remembered his 1000-a-day pot. He broke the pot and behold he had over N700,000! Needless to say the school fees was paid and he had excess cash. Can you imagine just how powerful the seed of N1,000 a day is? If I don’t have your attention by now that’s sad but if I do, now is the time to take out a pen and paper to take some notes. Savings and investments are often mistaken to mean the same thing when there is a very clear dierence between the two. Savings is passive while investment is active. You can therefore infer that the active should deliver more return than the passive because when you save (such as in a bank savings account) the return is minimal. Whereas when you invest, the return not only rewards you for putting money aside but should also rewards you for any potential risks that may be in the investment you have chosen. Too deep? ... I shall explain. Each person goes through the cycle of life – birth, youth, maturity, old age and death but during the course of that journey we have a nancial sub-cycle that can be broadly categorized as – family, business, lifestyle and philanthropy. Depending on where you are in your life cycle, your nancial sub-cycle will change as will your perception of risk (how much you are willing to take and how much is too much risk). In your youth, you can take risks much more than when you are in maturity and the risks you are willing to take in maturity (business and family) also dier from those you face in the twilight of your life when you may be thinking of transition and your give-back to society (philanthropy). All these occur within the common denominator of time so we must understand how much time we have for each investment we make. So, now you perhaps understand where you stand in both the cycle of life and the nance sub-cycle, you can begin to see where you stand with respect to how much risk you are willing to take and how much is too much. Investments oer dierent levels of risk. As you decide to invest, it’s important that having identied your risk appetite (described above) you select your preferred investment outlet based on your risk prole. Common outlets in Nigeria include: Fixed Income Securities Fixed tenor investments in securities like Treasury Bills, Bonds (Government and Corporate), etc. These are usually short to medium term investment outlets that give good and predictable return. You must be mindful though that if you break an investment in these instruments you can lose quite a bit of money (even your principal may be at risk). Equity Investments Though equities are reputed to always beat xed income securities from a return on investment perspective, you must be really patient with this outlet and have a long term view when you invest here. Many have been burnt in the past so do tread cautiously when you consider this market and as much as possible get an experienced adviser to guide you. Real Estate The popular saying ‘there’s no estate like real estate’ was true till we had the market crash stemming from the real estate linked bubble a few years ago. But please relax, we are not trading those sophisticated instruments here in Nigeria yet so your investment in ‘brick and mortar’ still commands value if you choose the right location and enter at the right price for the right quality (you can also ask us). There are also a number of hybrid products that take elements of this and that, putting them together based on your risk prole. The money market is usually the best access route to these other channels where your funds can be invested on short term basis for a pre-determined return largely driven by the ‘interbank’ demand for and supply of funds. The most important thing is to START NOW! Get the right investment advice NOW! Little drops of water do make an ocean, you don’t want to see water everywhere like in the ocean and yet not have a drop to drink. You must be a rst partaker of the enterprise that you represent. As a banker, you advise or sit in management over other peoples’ money so BE A GOOD STEWARD OF YOUR OWN MONEY! At UBA Asset Management Limited, we have products suited to your pocket and with as little as N10,000 you can take advantage of any of the UBA mutual funds. Managed by experts that bring together several investors in pools, we are able to invest on your behalf in various asset classes under dierent umbrellas. You can be sure of our commitment to you as we also have our own money invested alongside yours. We make money only if you also make money! The UBA Money Market Fund pays quarterly dividend and is invested fully in xed income securities such as Treasury bills, bonds, etc). This investment is great for salary earners that are trying to create a nest of funds targeted for a future project. It is more short term in nature as the quarterly dividend payout window makes it possible for investors to enter and exit the fund periodically. The UBA Equity Fund invests largely in equities and is for the more aggressive investor with long term expectations. We don’t take undue risks with your investment so our positions are in stocks with strong fundamentals and potential for growth. Historically, this fund has paid out well with the most recent dividend distribution of 15kobo per unit. The yield was in excess of 30% (FYE 2012)! You have heard of long distance running and the reference made by the saying that ‘life is not a sprint but a long distance race’. The UBA Bond Fund is the long distance investment outlet that invests primarily in Bonds. The UBA Balanced Fund appeals to all as it invests in equities and xed income almost on an equal basis. It is doing very well as any temporary ‘insanities’ in the equities market are cushioned by the predictable returns oered by the xed income securities to ensure that the fund continues to deliver on the promise of real return. The best part of these mutual funds is that for every investor you are able to attract to the funds (in excess of N2million) you can earn a commission of 0.25%! This is a limited time oer though so make sure you act fast and take advantage of this opportunity to earn more. The more you earn, the more YOU can again invest and so on. In closing let me say this…you must benet from the wisdom available around you so please take advantage of the professional services we oer at UBA Asset Management Limited and talk with an investment adviser today! Remember the little drop... Contact: Dunke Bode-Aribisala adedunke.bode-aribisala@ubacapitalgroup 0803 536 0127 What’s your nancial DNA? By Adedunke Bode-Aribisala, UBA Asset Management Is it not interesting that our journey and experiences through life rest signicantly on the choices we make?

Posted on: Fri, 04 Jul 2014 14:26:34 +0000

I sat pondering over the many decisions I had to make as a wife, - TopicsExpress

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