A mutual fund managed by First City Asset Management Limited (FCAM), Legacy Short Maturity (NGN) Fund, has received a risk rating upgrade. The Fund’s rating has been upgraded by two notches, from BBB+(f) to A(f), by Agusto & Co, the foremost pan-African rating agency. FCAM is the wealth and investment management arm of FCMB Group Plc, one of Nigeria’s leading financial institutions.
The higher rating of A(f) indicates that Legacy Short Maturity (NGN) Fund has a low to moderate exposure to downside risk (impairment to the net asset value) in the medium term.
According to Agusto & Co, the new rating of Legacy Short Maturity (NGN) Fund was on account of the Fund’s good quality assets, adequate liquidity management strategies, conservative approach to credit risk & enhanced risk management, and zero currency risk exposure. In addition, the rating agency stated that interest rate risk in the Fund was moderate in the short term, and that the Fund has a high quality portfolio management team with over 18 years’ experience across various financial fields.
Legacy Short Maturity (NGN) Fund seeks to preserve capital and generate consistent income for unit holders. The Fund pursues its investment objectives by investing in high quality, Naira-denominated Money Market Instruments and short maturity bonds rated by a Securities & Exchange Commission (SEC) registered credit rating agency. Trading and Settlement is done on a best execution basis.
In addition, the Fund is highly liquid and well diversified. Proceeds to investors, at the point of exiting the Fund, are tax free. Legacy Short Maturity (NGN) Fund was nominated for Best Fixed Income Fund at the 2017 BusinessDay Banking Awards.
Speaking on the upgrade of Legacy Short Maturity (NGN) Fund from BBB+(f) to A(f) by Agusto & Co, the Chief Executive Officer of FCAM, Mr. James Ilori, said that, ‘’we are delighted that our focus on consistently creating value for unit holders, in line with the investment objectives of Legacy Short Maturity (NGN) Fund, has once again been recognised by Agusto & Co, via a double risk-rating upgrade for the Fund. We will continue to manage the Fund in the most professional manner, in line with international best practices.’’
FCAM, as a portfolio management company, also manages Legacy Equity Fund, which has become the toast of investors in the equity-based mutual funds segment in Nigeria. The company provides services that cut-across collective investment schemes such as mutual funds, which are predominantly for retail investors, as well as specialised discretionary portfolio management, for ultra-high and high networth individuals and institutional investors. FCAM has consistently focused on delivering superior wealth and investment management services, aimed at meeting investors’ desire for safety of investments and good return. FCAM’s market counterparties include CSL Stockbrokers Limited and First City Monument Bank Limited.
The company has continued to receive commendations and awards for its consistency in delivering performance in line with the investment objectives of its clients. In October this year, FCAM was conferred with the award of ‘’Best Managed Fund in Equity’’, at the BusinessDay Banking Awards. At the ceremony, the organisers stated that FCAM’s flagship product, Legacy Equity Fund, had witnessed consistent growth in unit price and net asset value to become the best performing, equity-based mutual fund in Nigeria.