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Product Description

Legacy USD Bond Fund is a Securities & Exchange Commission registered US Dollar denominated Collective Investment Scheme, structured as a high-yield mutual fund. The Fund seeks to generate stable income over the long-term. Legacy USD Bond Fund invests in credit-rated US Dollar denominated fixed income securities issued by the Nigerian Government, Supranational bodies and Corporate entities. The Fund was launched on 8th of January, 2018, and was listed on the Nigerian Stock Exchange on 23rd of April, 2018.

 Features

  • Product currency: US Dollar
  • Country of domicile: Nigeria
  • Fund Investment Objective: To generate stable income over the long-term
  • Minimum Implicit Target return: 5% net, per annum
  • Minimum Implicit Credit-risk rating of Instruments in the Fund: B-
  • Currency risk: Zero
  • Minimum initial subscription: 5,000 units (at prevailing market price per unit)
  • Minimum additional purchase: 1,000 units (at the prevailing market price per unit)
  • Minimum investment period: 6 months
  • Entry / Exit fee: Nil/ Penal charge of 2% of redemption proceeds if pre-liquidating before the minimum holding period of 6 months
  • Settlement / Redemption: 5 working days

 

Mechanics

 
  Currency and Asset Allocation Ranges Target Asset Allocation
  USD USD
Currency Exposure 100% 100%
Cash 0-5% 2%
Money Market Instruments 0-30% 0%
Sovereign Bonds, Supranational Bonds and Corporate Bonds 70% - 100% Sovereign: 55% Corporate: 43%
Total allocation to Corporate Bonds shall not exceed 75% of the Fund

 Benefits

  • Skilled and professional fund management;
  • Opportunity for capital appreciation and stable income;
  • Excellent means of hedging against potential Naira depreciation;
  • Convenient way of saving towards medium-to-long term goals, including towards future foreign currency related expenses/expenditure such as tuition fees and property acquisition;
  • The Fund will have zero currency risk, as inflows and investment of funds are solely in US Dollar;
  • Investments by the Fund are only made in credit-rated fixed income instruments;
  • Liquidity is guaranteed, at the point of exiting the Fund;
  • Dividend income earned on investments are paid in US Dollar;
  • Unit holders receive monthly Performance reports

 Settlement

Settlement is done in order to provide best execution

 

Decision making process

An investment committee meeting is held at least once a quarter, to determine the direction of the market and how to take advantage of emerging opportunities, which culminates in a house view. The decisions arrived at these meetings guide the Fund Manager on how best to invest the assets of unit holders in the Fund.

 

Click to download the Subscription Form

Click to download the Fact Sheets

 

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