Utica Capital Limited presents the opportunity to invest in our Dollar denominated fixed income product; ‘U – FRI$’ backed by underlying select sovereign or corporate Eurobond’s.
The underlying dynamics of the Nigerian economy that is subject to currency volatility is not expected to change in the near term due to the imbalance between imports and exports. This increases the demand for dollars and periodically leads to currency devaluation.
Therefore, with the expectation of future devaluations, astute investors invest in dollar denominated products to hedge against this risk.
The features of the fund are detailed below:
- Minimum Amount: $5,000.00 (Five Thousand Dollars)
- Minimum Tenure: 180 days
- Yield: 3.5% per annum
**To invest directly in Eurobonds and enjoy yields as high as 5% per annum, a minimum of $200,000.00 (Two Hundred Thousand Dollars) is required.
Benefit of investing in U-FRI$
- It is an effective tool to hedge against devaluation over the long term.
- It is an effective means to save towards future strategic obligations like education abroad, vacation/tourism etc.
- It offers an attractive interest yield better than the returns on dollar deposits and other short-term dollar instruments.
- It is an effective way to diversify investment portfolio across currencies.
- Provides periodic coupon payments in dollars that can be transferred to a domiciliary account net of transfer charges or re-invested in the Plan.
- Provides clients with access to the Eurobond market where minimum investment in the wholesale market is usually $200,000 (Two hundred thousand dollars).
