Unitholders of Legacy Short Maturity (NGN) Fund, a mutual fund managed by First City Asset Management Limited (FCAM), converged in Lagos on January 8, 2018 for the Annual General Meeting (AGM) of the Fund. FCAM is the wealth and investment management arm of FCMB Group Plc, one of Nigeria’s leading financial institutions. At the meeting, the unitholders approved the financial statements of the Fund for the year ended June 30, 2017, while also applauding it for generating returns of 12.99% despite the challenging operating environment. They also unanimously endorsed the payment of a dividend of 11kobo per unit as well as the name change of the Fund from Legacy Short Maturity (NGN) Fund to Legacy Debt Fund, among other resolutions passed at the meeting.
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.
Speaking on the performance of the Legacy Short Maturity (NGN) Fund at the AGM, the Chief Executive Officer of First City Asset Management Limited, FCAM), Mr. James Ilori, stated that although the return of 12.99% was lower than the 16.82% return of the Fund’s benchmark, the Fund carried significantly lower interest rate risk relative to its benchmark. Also, the Fund’s risk-rating was upgraded by Agusto & Co. Fund performance is expected to improve significantly in the new Fund year.
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 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. The company has consistently focused on delivering superior wealth and investment management services, aimed at meeting investors’ desire for safety of investments and good returns. In October 2017, Legacy Short Maturity (NGN) Fund was nominated for “Best Fixed Income Fund” and Legacy Equity Fund won the award of ‘’Best Managed Fund in Equity’’, at the BusinessDay Banking Awards. FCAM’s market counterparties include CSL Stockbrokers Limited and First City Monument Bank Limited.