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FCAM’s Legacy Short Maturity records 12.99% returns

Pays 11kobo dividends

By Nkiruka Nnorom

FCAM’s Legacy Maturity (NGN) Fund shareholders, a mutual fund managed by First City Asset Management Limited, have approved 11kobo dividends for the financial year ended June 30, 2017.

They also applauded the Fund Manager for 12.99 percent return recorded within the one year period. The shareholders  also approved the name change of the Fund from Legacy Short Maturity (NGN) Fund to Legacy Debt Fund among other resolutions.

Speaking on the performance of the Legacy Short Maturity (NGN) Fund at the Annual General Meeting, AGM, in Lagos, the Chief Executive Officer of First City Asset Management Limited, FCAM), Mr. James Ilori, said that although the return of 12.99 percent was lower than the 16.82 percent return of the Fund’s benchmark, the Fund carried significantly lower interest rate risk relative to its benchmark.

He stated that the Fund’s risk-rating was upgraded by Agusto & Co, and assured that the Fund’s performance is expected to improve significantly in the new Fund year.

He said: “The 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”.

In the audited results for the year ended June 30, 2017, Legacy Short Maturity (NGN) Fund recorded a profit after tax of N100.487million, as against N50.343 million realised in the previous Fund Year. In addition, total revenue generated by the Fund rose from N63.422 million to N119.005 million.

The Legacy Short Maturity (NGN) Fund rating was, in December 2017, upgraded by two notches, from BBB+(f) to A(f), by Agusto & Co, the foremost pan-African rating agency. 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 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.

FCAM, a subsidiary of FCMB Group Plc, 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.


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