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Product Description

FCAM offers portfolio management services under the following 3 mandates:

Discretionary Mandate: FCAM agrees investment objective(s) with the investor and then creates a portfolio to mirror the investor’s risk-return goals. FCAM makes all investment decisions on behalf of the investor.

Non-discretionary Mandate: Investors who wish to enjoy greater degree of participation in the management of their portfolios, can do so through non-discretionary investment mandates. FCAM provides clarity on available investment opportunities, for a fee. However, the investor makes the final decision on how and where to invest funds.

Execution Only Mandate: FCAM offers best execution-only service to investors. FCAM is not involved in the investment decision making process but only acts on orders received from investors. Examples of such orders include trades in Fixed Deposits, Treasury Bills, FGN Bonds, FGN Savings Bonds, and Corporate Loan Notes.

FCAM can also provide liquidity management services, via any of the above mandates

Features

  • Minimum Amount: N50 million or US$200,000 / equivalent in other foreign currencies
  • It allows diversification across asset classes, markets and currencies 

Mechanics 

The Fund manager helps the client to create an Investment Policy Statement (IPS), which will form the basis of the strategic asset allocation. This policy statement, which is reviewed with the client annually, helps the Fund manager to determine the objectives and the constraints of the portfolio. 

The risk tolerance of the client will help define the bracket under which the investment strategy will fall.

  • Investors with low risk tolerance will usually have 25% of their assets allocated to equity investments with the rest invested in fixed income and money market instruments
  • Investors with average risk tolerance will usually have their portfolios split evenly between equities and fixed income/money market investments
  • Investors with high risk tolerance will usually have 75% of their assets allocated to equity investments with the balance invested in fixed income and money market instruments.

Benefits

Equity investments are constructed from well researched stocks. They provide both growth, in terms of capital appreciation, and income generation, in terms of dividend payments.

Money market and fixed income instruments are tailored to match the investment horizon of the client, while keeping a portion in money markets to take advantage of high yields and simultaneously keep a check on portfolio volatility. 

The equity and fixed income investments are made in proportions that match the investor’s risk profile, with the aim of matching investment return with the lowest possible risk.

 

Target Market 

The minimum investment in this product is Fifty Million Naira (N50million Naira). A monthly Investment statement is sent out to the client on a regular basis.

 

Trading 

Trading of equities is done through CSL Stockbrokers. We provide best execution to our clients while keeping an eye on both explicit and implicit costs of equity and fixed income transactions through our access to other investment firms in Nigeria.

 

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 taken at these meetings guide the Fund manager on how best to invest the assets of clients.

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