The Legacy Short Maturity Fund, a mutual fund managed by First City Asset Management Limited (FCAM), 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.vFCAM is the wealth and investment management arm of FCMB Group Plc.
The firm explained in a statement that the higher rating of A(f) indicated 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 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 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.
Speaking on the upgrade by Agusto & Co, the Chief Executive Officer of FCAM, Mr. James Ilori said: “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.