What Are Dollar Fund Investments?
Dollar fund investments are investment vehicles designed to provide returns for investors holding US dollars while also serving as a hedge against inflation when a local currency is devalued.
Benefits of USD fund investment
1) Edge against inflation: Ever since Nigeria de-pegged its currency from the US dollar, many international traders and key stakeholders in the foreign exchange market have recognized that one of the best ways to hedge against inflation is to invest in dollars.
2) It gives you access to USD securities.
3) Diversification from Local Currency-Denominated Investments: A dollar fund helps you hedge against inflation that may arise from local currency devaluation, such as the naira’s current experience.
4) Most dollar fund investments allow you to save and invest toward dollar-denominated obligations such as trade, education, and healthcare.
Most fund managers offer unique benefits, so the advantages you receive from AVA Capital Group may differ slightly from those of the Stanbic IBTC Dollar Fund. Reviewing and comparing these benefits is important to choose the one that best suits your investment goals.
Dollar fund managers in Nigeria and their websites
If you’re looking to maximize returns on your dollar investment, here is a list of fund managers in Nigeria where investors that have bias for dollar-denominated securities can invest.
1) Cordros Dollar Fund: https://cordros.com/assetmanagement/cordros-dollar-fund/
2) Coronation Dollar Fund: https://www.coronation.ng/contact-us/
3) Futureview Dollar Fund: https://futureviewgroup.com/get-a-consultation/
4) GTBank Dollar Fund: https://gtfundmanagers.com/product/dollar-fund/
5) Stanbic IBTC Dollar Fund: https://www.stanbicibtcfundsmanagement.com/invest-now-4ev6leqy/fund/sidf
6) FSDH Dollar Fund: https://www.fsdhaml.com/fsdh-dollarfund/
7) ARM Short-term Eurobond Fund: https://www.arminvestmentcenter.com/MutualFunds/Details/2044
8) FBN Dollar Fund: https://fbnquest.com/asset-management/solutions/mutual-funds/fbn-dollar-fund/
9) AVA GAM Fixed Income Dollar Fund: https://avacapitalgroup.com/ava-gam-dollar-fund/
10) Afrinvest Dollar Fund: https://www.afrinvest.com/asset-management-overview/mutual-funds/afrinvest-dollar-fund/
11) ARM Eurobond Fund: https://www.arminvestmentcenter.com/MutualFunds/Details/2044
12) AXA Mansard Dollar Bond Fund: https://www.axamansard.com/investments/dollar-portfolio
13) Cowry Eurobond Fund: https://cowrywise.com/mutual-funds/nigerian-eurobond-fund
14) CardinalStone Dollar Fund: https://cardinalstoneassetmanagement.com/foreign-currency-investments/
15) Meristem Dollar Fund: https://meristemwealth.com/funds/dollar-fund/
16) Nigeria Dollar Income Fund: You can access this investment through Chapel Hill Denham: https://chapelhilldenham.com/investment-management/chapel-hill-denham-nigeria-dollar-income-fund/
17) RMBN Dollar Fixed Income: https://rmbnassetmanagement.com.ng/solutions/traditional-investments
18) United Capital Nigerian Eurobond Fund: https://unitedcapitalplcgroup.com/nigerian-eurobond-fund/
19) United Capital Global Fixed Income: https://unitedcapitalplcgroup.com/global-fixed-income-fund/
20) Nova Dollar Fixed Income Fund: https://www.novabank.ng/products/nova-dollar-fixed-income/
21) Legacy USD Bond Fund: https://www.fcmbassetmanagement.com/legacy-USD-bond-fund/
22) Zedcrest Dollar Fund: https://blog.zedcrestwealth.com/your-financial-growth-starts-here-zedcrest-dollar-fund/
23) Norrenberger Dollar Fund: https://norrenberger.com/asset-management/mutual-funds/
24) AIICO Eurobonf Fund: https://www.aiicocapitalinvestmentmanager.com/products/aiico-euro-bond-fund/
25) Comercio Partners Dollar Fund: https://invest.comerciopartners.com/cp-dollar-fund/
They offer a diversified portfolio of US dollar-denominated securities that provide competitive returns and long-term capital appreciation.
Most fund managers impose a minimum holding period of 180 days; however, it is important to review the specific terms and conditions of the investment before committing.
What should I look out for when investing in dollar fund?
When investing in any of these dollar fund managers, ensure to check the minimum investment, fund type, the minimum holding period, if you are able to withdraw during the holding period and the applicable penalty fee (in case), the annual management fee, and check if it is an open-ended, and other investment terms and conditions.
Disclosure: This is not a recommendation; the list is based on research conducted by Infomediang Business Solutions and a tweet shared by an investment advisor, Kalu Aja. We urge investors to do their due diligence.