NIGERIA – FCMB Asset Management Limited has revealed that its mutual fund known as Legacy Money Market Fund has received a rating upgrade from the Agusto & CO. credit rating agency.
While giving its credit update that upgraded the mutual fund from from A-(f) to A(f), Agusto & Co., noted that “the higher rating of A(f) reflects Legacy Money Market Fund’s conservative credit and liquidity profile.
“Since the launch of the fund in February 2019, Legacy Money Market Fund has maintained good credit quality of underlying investments, with assets held in securities with well-rated entities,” the pan African credit rating agency noted.
According to FCMB, the Legacy Money Market Fund is a low risk, open-ended, Nigerian naira-denominated mutual fund that invests in money market instruments.
Speaking on the upgrade of the fund’s credit rating, the Chief Executive Officer of FCMBAM, Mr James Ilori, said, “Given the low-risk nature of the Legacy Money Market Fund, capital preservation is given utmost attention, in our investment decisions.”
Earlier this month, FCMB Group Plc posted a 26 percent rise in profit before tax for the first half of 2020 despite of t operating in challenging economic environment.
The Group noted that its profits for H1 2020 rose to N11.1bn (US$28.83 million) in the first six months ended June 30, 2020, from the N8.8bn (US$22.85 million) recorded in the corresponding period in 2019.
In June, the Group’s commercial bank subsidiary secured a US$50M loan from IFC to help it expand lending to small and medium enterprises (SMEs) so they can sustain business activities disrupted by the COVID-19 pandemic.
The FCMB Group is a holding company divided along three business groups; commercial and retail banking (First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited).
The Group also has a corporate & investment banking arm (the Corporate Banking Division of the Bank, FCMB Capital Markets Limited and CSL Stockbrokers Limited) and an asset & wealth management arm (FCMB Pensions Limited, FCMB Asset Management Limited and FCMB Trustees Limited).