Agusto & Co assigns ‘‘A+(f)’’ credit quality rating and “FV3” fund volatility rating to the Legacy Debt Fund. The rating is valid till 31 December 2019.
Legacy Debt Fund (“the Fund” or “LDF”), previously known as Legacy Short Maturity (NGN) Fund, is a collective investment scheme, managed by First City Asset Management Limited (FCAM) – a wholly owned subsidiary of CSL Stockbrokers Limited. During the review period, LDF maintained good credit quality of underlying investments, as more than 75% of the Fund’s net assets were invested in “Aaa” (ng) credit quality FGN Securities, with the balance held in investment grade commercial papers and fixed deposits of good quality commercial banks. Adequate strategies are employed to manage liquidity risk, with circa 49% of the assets held in highly liquid FGN T-Bills, 2% of net assets in cash and 5% in fixed deposits that can be redeemed without penalties. The Fund has no exposure to currency risk, as all the investments are denominated in Naira. The duration of LDF at the end of October 2018 was at 1.11 years, well below the Fund’s target duration of 3.0. In our view, exposure to interest rate risk is moderate.
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