Our governance strength is independently validated by dual AA credit ratings from Agusto & Co. and GCR Ratings, a powerful testament to our financial soundness and commitment to investor protection – Orga
Kai Orga, Managing Director of ARM investment Managers, in this interview with BusinessDay, breaks down the transition of mutual funds from a niche financial product to the cornestone of Nigerian wealth creation, and how ARM is navigating a high-interest-rate environment to deliver value, amongst others.
Kai Orga, Managing Director of ARM investment Managers, in this interview with BusinessDay, breaks down the transition of mutual funds from a niche financial product to the cornestone of Nigerian wealth creation, and how ARM is navigating a high-interest-rate environment to deliver value, amongst others. Excerpts:
In an era of persistent double-digit inflation, how has ARM adapted its fund management strategy to ensure that mutual funds move from being mere “savings buffers” to genuine wealth-creation tools for Nigerians?
Inflation has tested every Nigerian household, underscoring the importance of preserving capital and extracting more value from every naira invested. That’s where expertise matters. At ARM Investment Managers, we treat volatility as a source of opportunity, not paralysis deploying a coordinated investment process that actively seeks mispriced value across asset classes.
Our strategy is anchored in disciplined active management: knowing what to buy or sell, when to act, and how much exposure to take relative to clearly defined benchmarks. We continuously test our views against macroeconomic conditions and market dynamics, refining allocations to keep performance competitive through cycles.
Crucially, we offer a suite of products calibrated to different risk profiles and objectives and we manage each fund strictly to its stated policy. That consistency and transparency enable us to shift mutual funds from mere inflation buffers to durable engines of wealth creation.
Mutual funds are often cited as the “premier wealth vehicle” because of their accessibility. What specific barriers, technological or psychological, has ARM broken down to bring institutional-grade investing to the everyday Nigerian?
We started by breaking the communication barrier, replacing jargon with plain language so people understand both benefits and risks. Through structured content, webinars, digital tools and how‑to videos, we’ve raised product literacy, helping investors grasp not just what to buy, but why.
We then lowered the cost of entry. Institutional‑grade access no longer requires institutional capital. With minimums from ₦1,000 on funds like the ARM Money Market Fund, Nigerians can start small and build consistently, without compromising professional management. We’ve also opened doors to high‑grade fixed income previously inaccessible to lower‑ticket investors, advancing financial inclusion in practice, not just policy.
On the technology front, ARM One, our flagship mobile platform on Android and iOS, brings the entire investing journey online: account opening, fund purchases, portfolio tracking, performance insights, and redemptions. Whether you are a market trader in Onitsha or a young professional in Port Harcourt, you now have the same seamless access to ARM’s investment expertise as an asset management company in Lagos.
To address Nigeria’s trust deficit, all ARM mutual funds are SEC-registered, independently custodied, and trustee-supervised. We publish performance transparently, pay dividends promptly, and deliver electronic statements to every unitholder. Our governance strength is independently validated by dual AA credit ratings from Agusto & Co. and GCR Ratings, a powerful testament to our financial soundness and commitment to investor protection.
Finally, we invest in education and community. Through the Realising Ambitions blog, in‑app insights, social content, partnerships, webinars, and CSR Initiatives, we promote financial literacy and demystify diversification, compounding, and asset allocation. Programs like Refer & Earn harness social proof, as people invest more confidently when someone they trust has had a positive experience.
Our product range now mirrors institutional choice: the ARM Money Market Fund (low risk, high liquidity), ARM Fixed Income Fund (steady medium‑term growth), ARM Discovery Balanced Fund (equity‑driven appreciation), ARM Halal Balanced Fund (Shariah‑compliant), and the ARM Eurobond Fund (dollar protection). What was once exclusive is now everyday accessible.
Bottom line: We have broken three barriers, financial (low minimums), technological (mobile access), and psychological (regulation, transparency, education), so more Nigerians can invest with confidence
3. What investment strategies and asset-allocation decisions enable ARM to move beyond capital preservation and consistently deliver inflation-adjusted growth?
We practice active portfolio management within robust regulatory and internal policies, giving us the flexibility to respond to market shifts without losing discipline. Asset‑allocation decisions reflect our macroeconomic outlook, fund guidelines, risk profiles, and return objectives. Our aim isn’t just to beat inflation, it’s to deliver attractive risk‑adjusted returns consistently. That principle sits at the heart of every allocation we make.
Given the volatility of the Naira and the fluctuating yields on Treasury Bills, how is ARM currently balancing its portfolios to outperform the “inflationary floor” without over-exposing retail investors to risk?
Given the volatility of the Naira and the frequent repricing across the fixed income curve, generating sustainable real returns has become structurally more challenging. Persistently high inflation and pronounced currency pass-through effects have further raised the hurdle, making consistently positive real returns, particularly within traditional fixed income assets, more difficult to achieve.
Against this backdrop, our objective remains clear: to deliver positive, risk-adjusted real returns that preserve purchasing power while avoiding undue volatility for retail investors. We pursue this through a combination of strategic asset allocation and disciplined tactical positioning across public markets and, where mandates permit, selective exposure to alternative asset classes that can enhance diversification and improve the resilience of real returns.
However, in an environment where inflationary risks remain elevated, we recognize that fixed income exposures alone may struggle to consistently outperform the inflationary floor. Accordingly, where investment mandates permit, allocations are increased to equities, with a focus on fundamentally resilient bellwether stocks that exhibit strong earnings visibility and pricing power.
Beyond public markets, alternative asset classes are incorporated where appropriate, including real assets and other inflation-hedging strategies, to enhance diversification and strengthen the durability of real returns.
