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Product Description

 Legacy Debt Fund (LDF) is an open-ended mutual fund that invests in Money Market Instruments and short maturity bonds. It was acquired, and restructured in July 2015. It is benchmarked against a composite of 50% return on 3-month Federal Government of Nigeria Treasury bill plus 50% return on 3-year Federal Government of Nigeria bond. The Fund is targeted at both retail and institutional investors. The LDF seeks to preserve capital and generate stable income. In addition, the Fund aims to provide liquidity and diversification benefits. The Fund is rated A (f) by Agusto & Company.

 Features

  • Product currency: Nigerian Naira (NGN)
  • Country of domicile: Nigeria
  • Fund Objective: To preserve capital and generate stable income
  • Fund rating: A (f) by Agusto & Co
  • Benchmark: 50% return on 3-month FGN T-bill + 50% return on 3-year FGN Bond
  • Minimum credit-risk rating of instruments in the Fund: A3 (Short-term) and BBB- (Long-term)
  • Currency risk: Zero
  • Minimum initial subscription: 25,000 units (at prevailing market price per unit
  • Minimum additional purchase: 5000 units (at prevailing market price per unit)
  • Minimum Investment period: 6 months
  • Entry / Exit fee: Nil / 25% of gain on capital, if within 6 months
  • Settlement / Redemption: 5 working days

Mechanics

The Fund is a relatively low-risk mutual fund and can invest up to 60% of the portfolio in Nigerian Government Treasury bills or Nigerian Government Bonds of up to 5 years. Liquidity is guaranteed, as the Fund Manager provides daily bid and offer prices. In addition, the asset allocation strategy of the Fund ensures that the Fund is diversified. 

 
  Currency and Asset Allocation Ranges Target Asset Allocation
  NGN NGN
Currency Exposure 100% 100%
Cash 0 - 100% 2%
Treasury Bills 0 - 60% 53%
Fixed deposits, Commercial Papers, Bankers Acceptances & other MMIs 0 - 50% 5%
Federal Government Bonds 0 - 60% 40%
State and Local Government Bonds 0 - 40% 0%
Government Guaranteed & Agency Bonds 0 - 40% 0%
Supranational Bonds 0 - 40% 0%
Corporate Bonds 0 - 40% 0%

 

Benefits

  • Skilled and professional fund management
  • Opportunity for capital protection and stable income
  • Excellent means of ensuring liquidity
  • Convenient way of saving towards short, medium or long term goals
  • Proceeds to investors, at the point of exiting the Fund, are tax free
  • The Fund has zero currency risk, as inflows and investment of funds are made solely in Nigerian Naira
  • Investments by the Fund will only be made in instruments with a minimum rating of A3 (short-term) and BBB- (long-term)
  • • Unit holders receive monthly Performance

 

History of Dividend Payment
FUND-YEAR ENDED DIVIDEND PAID DIVIDEND YIELD
30-06-2017 11 Kobo 4.48%

 

Trading /Settlement

Trading and Settlement is done by both CSL Stockbrokers and FCMB Ltd (our Group’s banking subsidiary), 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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