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Portfolio Management (Local & Foreign Currency)

FCMB Asset Management Limited offers Portfolio Management services under the following 3 mandates:

Discretionary Mandate: FCMB Asset Management Limited agrees investment objective(s) with the investor and then creates a Portfolio to mirror the investor’s risk-return goals. FCMB Asset Management makes all investment decisions on behalf of the investor, based on guidelines in an Investment Management Agreement.

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. FCMB Asset Management Limited 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: FCMB Asset Management Limited offers best execution-only service to investors. FCMB Asset Management is not involved in the investment decision making process but only acts on buy or sell orders received from investors.

FCMB Asset Management Limited can also provide liquidity management services, via any of the above mandates

About the Discretionary Mandate

Features

  • The minimum initial investment amount is usually N100 million or US$200,000 / equivalent in other foreign currencies
  • It allows diversification of Portfolio across asset classes, markets, and currencies
  • A monthly Investment statement is sent to the client

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, reflects the investment objectives of the client and the investment guidelines to be adhered to by the Fund Manager in managing the client’s 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 Money Market and Fixed Income instruments
  • Investors with average risk tolerance will usually have their portfolios split evenly between Equities and Money Market / Fixed Income investments
  • Investors with high risk tolerance will usually have 75% of their assets allocated to Equity investments, with the balance invested in Money Market and Fixed Income instruments

Benefits

Equity investments are constructed from well researched stocks. They can provide 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. They can minimise the impact of volatility in prices of Equities on overall Portfolio volatility.

Portfolio construction is based on matching the highest possible investment return with the lowest possible risk.