A mutual fund managed by First City Asset Management Limited (FCAM)- Legacy Short Maturity (NGN) Fund, has received a risk rating upgrade by Agusto & Co.
The Fund’s rating was two notches up, from BBB+(f) to A(f), and managed by a wealth and investment arm of FCMB Group Plc- FCAM.
The higher rating of A(f) indicates that Legacy Short Maturity (NGN) Fund has 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 (NGN) Fund was on account of the Fund’s good quality assets, adequate liquidity management strategies, conservative approach to credit risk and enhanced risk management, and zero currency risk exposure.
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Also, the rating agency said the interest rate risk in the Fund was moderate in the short term, and that it has a high quality portfolio management team with over 18 years’ experience across various financial fields.
Legacy Short Maturity (NGN) Fund seeks to preserve capital and generate consistent income for unit holders, while it 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.
The Fund is also highly liquid and well diversified, with proceeds to investors, at the point of exiting the Fund tax free and was nominated for Best Fixed Income Fund at the 2017 BusinessDay Banking Awards.
The Chief Executive Officer of FCAM, 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.
Source: G Business
