FBNQuest Advises Investors to Diversify Portfolios


Goddy Egene

FBNQuest Asset Management has encouraged investors to consider contrarian investing by taking advantage of the FBN Nigeria Eurobond (United States Dollars) Fund to diversify their portfolios. Contrarian investing is an investment strategy that involves purchasing and selling in contrast to prevailing sentiments of the time. This means an investor is buying assets when other market participants are selling.

A contrarian simply seeks opportunities to buy or sell specific investments when the majority of investors appear to be doing the opposite. The impact of the COVID-19 and falling crude oil prices have made major markets trading at steep discounts while central banks/governments are responding through rate cuts and cash injections into their economies.

This situation presents an opportunity for investors to invest and diversify their portfolios. And the Managing Director of FBNQuest Asset Management, Ike Onyia, said the FBN Nigeria Eurobond served as a veritable source of diversification of portfolios for investors, as it provides a viable option for contrarian investing and wealth creation.

“At this time, the FBN Nigeria Eurobond Fund provides an opportunity for Nigerian investors to diversify their asset classes on their wealth-creation journey. This is especially as it remains accessible to all categories of investors, offering the lowest minimum investment requirement currently at $2,500,” Onyia said.

According to him, fund was Nigeria’s first dollar-denominated public fund, and it invests in a broad range of US Dollar-denominated debt securities issued by the Federal Government of Nigeria (FGN) and highly rated corporate and financial institutions.

“The fund also provides flexibility and liquidity for expenses such as holidays, mortgages and university fees in foreign currency and has a proven performance track record having delivered average returns of 34.4 per cent from inception in January 2016 to February 2020,” he said.