Introduction

“Greater to the human mind is value in service above other gains!”
Longman Sherman (unpublished works – 1991)

In the spirit of the above quote, we are delighted to present to you the 4th edition of our increasingly acclaimed Leading Digest Newsletter.

As promised in the last edition, the concluding part of the article “Investment Management Demystified” (with its accompanying nuggets) is duly recounted.

Also find our FAQ Section on Pension Benefit Withdrawal for your information.

Please enjoy it.

Your future …..our passion!

Fund Report - The Sure Fund
Volume 4 - Fourth Quarter 2007
  CONTENTS
t
  :: Introduction
t
  :: Fund Report
t
  :: Article
t
  :: FAQ of the Month
t
  :: Jokes


The fund had a unit price of N1.1424 as at 2nd Oct 2007 and closed the quarter at N1.2124. The allocation of the fund as at 31st December was as follows; 26 % in the Capital Market; 36% in the Money Market; 1 % in Closed/Open ended Funds and 37% in Bonds. This is in line with PenCom's limit of 25% ,35%, 5% and 100% for the Capital Market, Money Market, Closed /Open End Funds and bond Markets Respectively.

The Quarter started on a slow note as a seasonal effect but gradually begun to rally from November 2007. Unusually, the market experienced a more significant rally in December which gave rise to the Fund price increasing by 7% within the quarter from a price of N1.1424 in October to N1.2181 in December 2007

  
 
  Article:  Investment Management Demystified II

In the previous edition we highlighted that the ability to source, understand and utilize financial information is key to successful personal Investment Management. We also encouraged that you set a goal, acquire prior knowledge, understand our financial market system and lastly know yourself. Our discourse on this subject will however not be complete without considering the following additional tips:

Diversify your Investment – This is clearly one of the cardinal principles of successful investing. It requires that you invest in a wide variety of asset classes. The rationale is that diversification will absorb the possible risk event in your portfolio such that positive performance of some assets will neutralize the negative performance of others. You may wish to consider spreading your investments from the stock market to the fixed income market (bank deposits, treasury bills etc) and depending on financial capacity, real estates. “The object is not to keep all your eggs in one basket”.

For stocks, try to know the company you are investing in – As earlier advised; endeavor to obtain as much information as possible regarding the activities of companies on your stock buy list. You can source the annual reports of these companies for research. Granted not a lot of people have expertise to analyze or understand financial statements of a company. Less technical aspects such as the chairman’s statement or even the profile of individuals on the Board of Directors may prove insightful to your decision to invest in the company. It may not be out of place to reiterate the need to nurture a relationship with your stock broker, as their opinion whilst not always accurate is often helpful! On a lighter note, the price of a stock on the Stock Exchange may be moving upwards rapidly while its factory is overgrown by weeds!!

Endeavour to study economic, industry and or policy trends – A successful investor will always take positions in anticipation of prevailing economic/government policies. For example, the prohibition or otherwise of certain categories of goods and services by the Federal Government may prove to be a burden or benefit to different investors in the affected sectors.

Conclusion – Determine your investment objectives and understand your personality above all. Happy Investing!

 
FAQ of the Month

When can employees commence withdrawal of retirement benefits under the reform scheme?

Generally, the following conditions must be met to access pension benefits: 1). You must have attained the age of 50 years or the retirement age of your organization or that of your employment contract (whichever comes first). Persons who also retire before the age of 50 in line with their employment contract can also access 25% of the balance in their retirement savings accounts. Incapacitated persons can also apply to withdraw retirement benefits so far that they provide valid

medical certificate to this effect. Furthermore, beneficiaries of deceased or missing employees can apply to receive their benefits so far as they provide a Will admitted to probate or a validly issued Letter of Administration. Meanwhile, to facilitate withdrawal applications, retirees are expected to notify their PFA in advance of 6 months before retirement.

Jokes

Ageless Therapy
Some people grow old gracefully, while others fight and scratch the whole way. James’s wife, refusing to give in to the whims of growing old , goes out and buys a new line of expensive cosmetics and clothing guaranteed to make her look years younger. After a lengthy sitting before the mirror applying the miracle products, she asks her husband, Darling, honestly, if you didn’t know me what age would you say I am? Looking over her carefully, James replied: judging from your skin - twenty; your hair - eighteen; and your figure - twenty five. Oh you flatter! She gushed. Just as she was about to tell James his reward, he stops her by saying WHAO, hold on there sweetie! James interrupted. Haven’t added them up yet!
 
To send in your comments, feedback or you want to contact us, call 01-2 800 800, send a mail to editorial@leadway-pensure.com or visit our web site- www.pensure-nigeria.com. You can also walk in to our office and be attended to by our friendly customer service representatives at our head office – Afric Place, 7 Afric Road, Off Western Avenue, Iponri, Lagos, or any of our branches across the country.
 

Your Future...Our Passion.


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