Corporate Social Responsibility Report 2008 As ... - Access Bank

Corporate Social Responsibility Report 2008 As ... - Access Bank

making the Access Bank Liquid Nigerian Government

Bond Index "fully invested." Its daily return values

accurately represent the returns an investor would

expect to achieve on an actual index fund portfolio.

• The index provides an indication of market

expectation of interest rates

The Access Bank Liquid Nigerian Government Bond

Index tracks the changes in market conditions. The

index is a good mirror of the economic policy changes

of the government and the market interpretation of

structural reforms that will have a bearing on the

interest rate in the economy. Under these circumstances

it serves as a useful aid to predict the impact of macroeconomic

policy decisions on interest rate movements.

• The index is timely, accurate and reliable

The index values are available immediately after the

close of the markets such that managers can measure

their performance immediately, and, where necessary,

make timely adjustments to their investment strategy.

An index is only as accurate as the prices from which

it is built. Reliable pricing, accurate and timely, from

Access Bank’s bond traders and other cooperating

PDMMs, using local market conventions, produce

index returns that accurately reflect those attainable

by investors. The index uses mid-market closing

transaction prices supplied by the licensed market

makers. The quotes received from PDMMs are sorted

in a descending order. 20% of the highest and lowest

quotes will be eliminated and an average of the

remaining 60% will be accepted as the closing price

for each Bond.

Additional information about the Index is available

through a host of electronic and print media as follows:

Electronic Media

• The Internet: The bond index as well as the

associated daily reports covering the statistical indices

can be viewed and downloaded from The site is available

for public access.

• E-mail: The daily reports can be mailed to internet

email addresses once an individual signs up.

• Market News Services.

• Reuters page ACCL.

Print Media

The Index returns are published in more than 10 Nigerian

newspapers on a daily basis

Access Bank Treasury Products

At Access Bank, we offer financial products that address

the safety, liquidity and return requirements of our clients.

Our underlying philosophy is the provision of an attractive

return on investment in low risk money market products,

thus ensuring the safety of our customers' funds. Our

treasury products include the following:

Bankers’ Acceptances (BA)

These are investments in commercial notes that are

guaranteed by Access Bank for tenors ranging from 30

days to 180 days. The interest on this product is paid

upfront and is not subject to withholding tax.


• The acceptance is evidenced by Access Bank’s

acceptance stamp on the bill signed by its authorized


• Ordinarily, the borrower then sources for investor(s) to

discount the accepted bill. When the bill is accepted

and discounted by Access Bank, it will be called Own

Acceptances Discounted (OAD).

• For a transaction to qualify as BA, it must have an

underlying trade transaction for which the Bank

should hold the title documents to the merchandise

as collateral for the acceptance. Trade in this case

means visible trade (domestic or international).

• Accepted by a bank that assumes responsibility to

make payment on draft at maturity.

• Accepting bank may discount the bill which may be

rediscounted or held till maturity date.

• Tenors/maturities are usually 1-6 months.

• Major investors in banks’ BA portfolios are mutual

funds, pension funds, large institutional investors and



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