ARM Investment Managers runs two Shariah funds. The ARM Sharia-Compliant Fixed Income Fund (SFIF), launched in November 2024, held N1.87bn on 31 August 2026, takes a N10,000 retail minimum, charges a 1.5% management fee inside a 2.39% expense ratio, locks you in for 90 days, pays dividends twice a year and returned 17.17% in 2025 on the manager's figures. The ARM Halal Balanced Fund, launched in 2004 and formerly the ARM Ethical Fund, held N17.00bn, splits roughly half and half between Shariah-screened equities and sukuk or Mudarabah placements, and locks you in for 180 days. Both are credible. Neither is the ARM Money Market Fund, which is interest-based. The halal investing hub sets out where each fits.
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What the ARM Sharia-Compliant Fixed Income Fund holds
ARM's August 2026 factsheet describes SFIF as an open-ended naira fund that invests only in Shariah-compliant fixed income securities such as sovereign and corporate sukuk with a minimum rating of BBB, plus Shariah-compliant fixed-term instruments. The portfolio allocation is 100% fixed income. On 31 August 2026 the actual split was 51.76% in Shariah-compliant fixed-term instruments, 45.94% in sukuk and 2.31% in cash, with a maturity profile of 61.14% under one year, 28.07% between one and five years and 10.80% between five and ten years. Fund duration was 2.25.
That is a shorter, more placement-heavy book than the name suggests. Roughly half the fund behaves like a non-interest term deposit and half like a sukuk portfolio, which is why ARM classes the risk profile as medium with moderate volatility. The benchmark is a composite of the 3-year Nigeria sovereign sukuk and Nigeria treasury bill true yields. Custodian is Rand Merchant Bank Limited and the trustee is FBNQuest Trustees Limited. The fund is registered with the Securities and Exchange Commission and sits on the FMAN list of Shariah-compliant funds.
SFIF fund facts, fees and returns as published
| Fund fact | ARM Sharia-Compliant Fixed Income Fund | Source |
|---|---|---|
| Launch date | November 2024 | August 2026 factsheet |
| Assets under management | N1.87bn | August 2026 factsheet |
| Minimum investment | Retail N10,000 initial, N1,000 additional; institutional minimum stated as N10m in the fund table and N20m in the fund text | August 2026 factsheet |
| Management fee and expense ratio | 1.5% of NAV; 2.39% annual expense ratio year to date | August 2026 factsheet |
| Incentive fee | Up to 20% of excess returns above benchmark | August 2026 factsheet |
| Minimum holding period | 90 days; 20% charge on income earned if withdrawn earlier | August 2026 factsheet |
| Distribution | Dividends twice a year, cash or reinvested | August 2026 factsheet |
| Holding yield and 2025 return | 17.89% holding yield; 17.17% return in 2025; N10,000 at launch became N12,361 by 31 August 2026 | August 2026 factsheet |
Two details deserve attention. The factsheet gives two different institutional minimums, N10,000,000 in the fund details table and N20 million in the descriptive text, so an institution should ask ARM which applies. And the incentive fee of up to 20% of returns above the benchmark is unusual for a fixed income fund; Lotus, Stanbic and United Capital do not publish one on their sukuk funds. In a year when the fund beats its composite benchmark, your net return will be lower than the gross outperformance suggests. The 2.39% expense ratio already reflects the costs incurred so far this year.
The ARM Halal Balanced Fund, formerly the ARM Ethical Fund
The older of the two funds is classified by the SEC as an Ethical Fund and launched in 2004. ARM's factsheet says it invests in Shariah-compliant equities on the Nigerian stock exchange alongside investments that generate steady income, naming sukuk and Mudarabah deposits, with the objective of long-term capital appreciation and income distribution in accordance with Islamic finance principles and ethical values. The allocation range is 40% to 60% equity and 40% to 60% alternative investment, and on 31 August 2026 the two sleeves held 54.68% and 45.32% of the fund.
The equity sleeve held 13 stocks with an overweight in oil and gas and underweights in materials and consumer staples. The factsheet reports a Sharpe ratio of 0.85, a portfolio beta of 0.86 and a 2025 dividend yield of 0.35%. The benchmark is a composite of the NSE Lotus Islamic Index and the 5-year sovereign sukuk. Fees match SFIF: 1.5% management, up to 20% incentive above benchmark, and a 2.43% expense ratio year to date. The minimum is N10,000 and the holding period is 180 days. The custodian is Rand Merchant Bank and the trustee is First Trustees Nigeria. ARM's growth chart shows N10,000 invested on 31 December 2022 worth N31,910.66 by August 2026, which reflects the strong Nigerian equity market over that period more than anything specific to the manager.
The ARM Money Market Fund problem
ARM's best-known product is the ARM Money Market Fund, launched in 2013, benchmarked to the 91-day treasury bill stop rate and invested entirely in short-term securities under one year. The same factsheet that carries the two Shariah funds describes the money market fund's benefits as competitive interest rates that help your money grow faster. That is an interest-bearing fund by its own description, holding treasury bills and bank placements that pay interest. It is not halal, and the fact that ARM also runs Shariah funds does not change that. The edition's is it halal guide covers how to judge any fund by what it holds rather than by who runs it.
If you hold units in the ARM Money Market Fund and want to stay with ARM, the direct substitute is SFIF: similar short duration (61% of assets mature within a year), similar liquidity after the 90-day lock-in, and a published holding yield of 17.89% against the money market fund's treasury-bill benchmark. The switch is a redemption and a fresh subscription, not a transfer, so the money market fund's 30-day minimum holding and SFIF's 90-day holding both apply, and you should ask ARM whether income earned in the interest fund up to the switch date should be purified by giving it away. Most scholars say it should.
Shariah oversight as ARM publishes it
The SFIF pages of the factsheet say the fund is monitored by a knowledgeable Shariah advisory board and that your money is invested with guidance from a trusted Shariah advisory board. No member is named, no certification body is cited and no review date is given anywhere in the August 2026 factsheet. The Halal Balanced Fund page says only that it invests in accordance with Islamic finance principles and ethical values. That is thinner disclosure than Lotus Capital, which names its advisory committee, and thinner than the edition expects of a manager with N19bn in Shariah assets. Ask ARM for the board's membership, the latest compliance certificate and the purification policy for the Halal Balanced Fund's equity dividends before you invest.
How to subscribe and redeem
The factsheet says it is easy to start or stop an investment and that you can track everything online, and gives enquiries@arm.com.ng as the contact. ARM's investor platform handles subscriptions for its mutual funds; the fund pages themselves do not state the redemption settlement period, so ask for it in writing. The practical steps are below.
- Register on ARM's online investment platform with BVN, a valid ID and proof of address, then select the Sharia-Compliant Fixed Income Fund or the Halal Balanced Fund rather than the money market fund.
- Fund with at least N10,000; additional SFIF subscriptions can be as small as N1,000.
- Choose cash or reinvestment for the SFIF half-yearly dividend and the Halal Balanced Fund annual dividend.
- Hold SFIF for 90 days or accept a 20% charge on the income earned on the amount withdrawn; hold the Halal Balanced Fund for 180 days.
- Keep each half-yearly factsheet, since the expense ratio and allocation move materially between reports.
ARM against Lotus, Stanbic and United Capital
The comparison below covers the naira Shariah fixed income funds that compete directly with SFIF. The First Asset Halal Fund review covers the fifth contender. Figures are from each manager's most recent factsheet or product page that I fetched; dates differ, so compare terms rather than prices.
| Fund | Launched | Size | Minimum | Lock-in | Fee | Incentive fee | Distribution |
|---|---|---|---|---|---|---|---|
| ARM Sharia-Compliant Fixed Income Fund | Nov 2024 | N1.87bn | N10,000 | 90 days | 1.5%, 2.39% TER | Up to 20% above benchmark | Twice a year |
| Lotus Halal Fixed Income Fund | May 2016 | N48.31bn | 5 units | 30 days | 1.5% | None published | Quarterly |
| Stanbic IBTC Shariah Fixed Income Fund | Aug 2019 | Not stated | N5,000 | None | 1.5% | None published | Not stated |
| United Capital Sukuk Fund | 2020 | N4.1bn | N10,000 | 90 days | 1.5%, 1.8% TER | None published | Annual |
On terms, ARM is the most expensive of the four once the incentive fee and the 2.39% expense ratio are counted, and the smallest by a wide margin. Lotus Capital wins on size, liquidity and payout frequency. Stanbic IBTC Asset Management wins on flexibility with no holding period. United Capital matches ARM's minimum and lock-in at a lower expense ratio. What ARM offers that the others do not is the balanced fund next door, so a saver can hold both a sukuk sleeve and a Shariah equity sleeve with one manager, which the Shariah-compliant mutual funds comparison treats as a real convenience.
What ARM does not publish and what to ask for
The factsheet does not publish the NAV per unit for either Shariah fund, the redemption settlement period, the names of the Shariah board, the purification method for non-compliant income, or a single institutional minimum. It also carries a disclaimer that the factsheet is intended for professional and institutional investors unless otherwise permitted, even though the text invites individuals to start with N10,000. Ask ARM for all five items by email and keep the reply.
Verdict: who should move to ARM's Shariah funds
Move to SFIF if you already hold the ARM Money Market Fund and want out of interest without leaving the manager: the duration profile is similar, the published holding yield is competitive, and the switch is a straightforward redemption and subscription once you accept the 90-day lock-in. Hold the Halal Balanced Fund if you want a Shariah equity sleeve with a long record and are comfortable with a 180-day lock-in and an incentive fee.
Choose Lotus instead if you are starting from scratch, since it is larger, cheaper on an all-in basis, pays quarterly and names its Shariah committee. Choose United Capital for the same minimum and lock-in at a lower expense ratio. Whatever you choose, do not leave money in the ARM Money Market Fund on the strength of the Shariah funds beside it; the edition's list of halal investing mistakes puts that error near the top. Facts checked against arm.com.ng, lotuscapitallimited.com, stanbicibtcassetmanagement.com, unitedcapitalplcgroup.com on 30 September 2026.
Frequently asked questions
What is the minimum investment in the ARM Sharia Fixed Income Fund?
N10,000 for an individual, with additional subscriptions from N1,000, according to ARM's August 2026 factsheet. The institutional minimum is stated as N10,000,000 in the fund details table and as N20 million in the descriptive text, so institutions should confirm with ARM. The minimum holding period is 90 days, and withdrawing earlier triggers a 20% charge on the income earned on the amount withdrawn.
Is the ARM Money Market Fund halal?
No. ARM's own factsheet describes the money market fund as offering competitive interest rates, benchmarks it to the 91-day treasury bill stop rate and invests it entirely in short-term interest-bearing securities. Running Shariah funds alongside it does not make it compliant. A Muslim investor holding it should redeem after the 30-day minimum, subscribe to the Sharia-Compliant Fixed Income Fund instead, and purify the interest earned.
What has the ARM Sharia Fixed Income Fund returned?
ARM reports a 17.17% return for 2025 and a holding yield of 17.89% at 31 August 2026, with N10,000 invested at the November 2024 launch worth N12,361 by the end of August 2026. These are the manager's figures on a NAV-to-NAV basis with dividends reinvested, before any incentive fee that may apply in a year of outperformance, and past performance is not a guarantee.
What is the ARM Halal Balanced Fund?
It is ARM's Shariah balanced fund, launched in 2004, formerly the ARM Ethical Fund, with N17.00bn in assets on 31 August 2026. It holds 40% to 60% in Shariah-screened Nigerian equities and 40% to 60% in sukuk and Mudarabah placements, held 13 stocks at the last factsheet, charges 1.5% plus an incentive fee, has a 2.43% expense ratio and requires a 180-day minimum holding period. Minimum investment is N10,000.
Who is on ARM's Shariah advisory board?
ARM does not say. The August 2026 factsheet refers to a knowledgeable Shariah advisory board for the fixed income fund but names no member, certification body or review date, and the Halal Balanced Fund page gives no governance detail at all. Ask ARM for the board's membership, its latest compliance certificate and its purification policy in writing before investing, and treat a vague answer as a reason to choose another manager.
Compare providers in your state
See side-by-side comparisons of Shariah-compliant products, or let our matcher recommend the best options for your situation.
Is ARM's Shariah fund better than Lotus or Stanbic?
Not on terms. ARM is smaller at N1.87bn, carries a higher 2.39% expense ratio, adds an incentive fee of up to 20% above benchmark, and locks you in for 90 days. Lotus is N48.31bn with a 30-day lock-in and quarterly payouts; Stanbic has no holding period. ARM makes sense mainly for existing ARM clients or for those who want the balanced fund alongside it.
