First City Asset Management lists Legacy USD Bond Fund on Nigerian Stock Exchange

By Afolabi Adesola

Legacy USD Bond Fund, a mutual fund managed by First City Asset Management Limited (FCAM) and registered with the Securities and Exchange Commission (SEC), is now listed on the Nigerian Stock Exchange (NSE).

The Fund, which recorded an impressive 244.44 percent subscription in its Initial Public Offering (IPO), raised over US$6million. The IPO was, therefore, 144.44 percent oversubscribed. FCAM is a member of FCMB Group Plc.

The Legacy USD Bond Fund is an open-ended investment vehicle registered with the SEC and managed by FCAM. It gives investors the opportunity to invest in US Dollar denominated fixed income securities on a continuous basis and aids currency diversification.

It also provides flexibility with respect to the timing of investments in, and redemptions from the Fund. The objective of the Legacy USD Bond Fund is to generate stable income over the long-term.

The Fund is being managed as a unit trust scheme designed for investors seeking an efficient way to earn stable income in US Dollar, from investing in a portfolio comprising of high quality, registered, and tradeable US Dollar fixed income securities.

In his comments, James Ilori, the chief executive officer of FCAM,  said, “We thank the Nigerian Stock Exchange for working with us to list Legacy USD Bond Fund. We believe that the listing is another step towards making our mutual funds easily available to the investing public, irrespective of where they are based. We will continue to work with the NSE in creating opportunities for investors to efficiently access safe and value-adding investment products and services. Legacy USD Bond Fund has now re-opened to new and existing investors.”

FCAM, which also manages two of Nigeria’s leading mutual funds – Legacy Debt Fund and Legacy Equity Fund, 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 international standard wealth and investment management services, aimed at meeting investors’ desire for safety of investments, diversification and good returns. In December 2017, Legacy Debt Fund received a risk rating upgrade of 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 Debt Fund has a low to moderate exposure to downside risk (impairment to the net asset value) in the medium term.

In October 2017, 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.