Unit holders of Legacy Short Maturity (NGN) Fund, a mutual fund managed by First City Asset Management Limited (FCAM), yesterday held Annual General Meeting (AGM) in Lagos.
FCAM is the wealth and investment management arm of FCMB Group Plc, one of Nigeria?s leading financial institutions.
The unit holders had during the meeting, approved the financial statements of the Fund for the year ended June 30, 2017. They praised the firm for generating returns of 12.99 per cent despite the challenging operating environment.
They equally unanimously endorsed the payment of a dividend of 11 kobo 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 its audited results, Legacy Short Maturity (NGN) Fund recorded a profit after tax of N100.847 million, as against N50.343 million realised in the previous year. In addition, total revenue generated by the firm rose from N63.422 million, to N119.005 million.
Chief Executive Officer of FCAM, James Ilori, stated that although the return of 12.99 per cent was lower than the 16.82 per cent 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.