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Legacy USD Bond Fund

Legacy USD Bond Fund is a Securities & Exchange Commission, Nigeria 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 is targeted at both retail and institutional investors. In addition, we have a Customer Portal through which investors can view their holding in the Legacy USD Bond Fund. Login details will be sent to the investor's registered email address, once the investor has registered at https://portal.fcmbassetmanagement.com/.

Features

  • Product currency: US Dollar
  • Country of domicile: Nigeria
  • Fund Investment Objective: To generate stable income over the long-term
  • Benchmark: 2-year Nigerian Government USD Eurobond yield
  • Currency risk: Zero
  • Minimum initial subscription: 1,000 units (at the 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: Between 1-5 working days

Mechanics

The Fund is predominantly a bond-based Fund, with a minimum allocation of 70% to bonds issued by Nigerian entities. It is wholly a US dollar Fund. Therefore, investors buy units in US Dollar and redeem units in the same US Dollar. The Fund offers investors a hedge against both local inflation and Nigerian Naira devaluation. It is, therefore, an excellent way to preserve value.  In addition, the Fund aids diversification across currencies and issuers, as instruments held are solely in US Dollar and from different Nigerian entities.

Benefits

  • Skilled and professional fund management;
  • Opportunity for capital protection and stable income;
  • Excellent means of earning income, including on idle funds;
  • Convenient way of saving towards medium-or long-term goals;
  • Good way to hedge against Nigerian Naira devaluation;
  • 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 US Dollar;
  • Benchmark is market-driven, so no need to negotiate rates;
  • Fund is very liquid, making entry and exit very easy;
  • Unit holders can monitor their investments 24/7/365 through our Customer Portal and will receive monthly reports

Settlement

Settlement is done 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.

"principal and return on investment are not guaranteed"

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