Legacy Equity Fund (LEF) is an open-ended mutual fund that is benchmarked against the performance of the Nigerian Stock Exchange All Share Index (NSE Index) and targeted at both retail and institutional investors. It seeks to outperform the return on the index over economic cycles as well as achieving capital appreciation and generating stable income (dividends). This is equivalent to a medium-to-long term investment outlook.
- Base currency: Nigerian Naira (NGN)
- Benchmark: Nigerian Stock Exchange All-share index
- Minimum initial subscription: 10,000 units.
- Minimum additional purchase: 1,000 units
- Entry / Exit fee: Nil / 2%, if within 3-months
- Settlement / Redemption: 5 working days
The Fund replicates the performance of the Nigerian Stock Exchange All Share Index (NSE Index) by investing at least 60% of its holdings in highly liquid, well researched stocks and the balance is invested in money market instruments, fixed income securities, and REITs, to create a Fund that is diversified across securities and asset classes. The fund paid dividends of 8 kobo and 8.7 kobo for years ended June 2013 June 2014. As at the end of fund year June 2015, the fund outperformed the NSE ASI by 2.63%.
Equity investments are constructed from well researched stocks and highly rated securities covered by CSLS research, which provide both asset growth via capital appreciation and income generation via dividend payments. Investments in other asset classes are carefully selected, to ensure that the Fund benefits from both capital protection and interest payment. Proceeds to investors, at the point of exiting the fund, are tax free.
Trading and settlement of securities is done by CSL Stockbrokers 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 manager on how best to invest the assets of the clients that sign up for this product.