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FCMB raises hope on Legacy Fund


January 22, 2006/punch




The Chief Executive Officer, FCMB Capital Markets, the manager to the Legacy Fund, Mr. Gboyega Balogun has assured subscribers of the fund of a quick and reasonable return on their investment. The fund is expected to open on January 31, 2006 and closes of February 28. Giving a detailed insight into the fund which targets N1billion from one million units of N1.00 each, Balogun said that the main objective of the fund is to provide investors and /or their beneficiaries and dependants with income (dividends) and attractive total return (dividends and capital gains) in the medium to long-term.

“The fund will be invested in a variety of “blue chip” companies and industries with strong fundamentals, which offer the potential for accelerated earnings growth generated through the combination of proven technological applications, superior products and services and dynamic management teams,” he disclosed, adding that the fund’s asset will be distributed across a diversified universe of investments aimed at maximising wealth creation.

It was gathered that in identifying quality investments, the fund manager, in association with FCMB Capital Markets, and supported by its research team, shall adopt a bottom-up investment approach based on comprehensive due diligence on the nature of the investment, as well as independent, robust and thorough research, that will lead to prudent investment judgement.

The fund manager pledged to make investment decisions based on the continuous assessment of the specific investments that offer the strongest prospects in the medium-to-long-term.

Analysts who spoke on the preparations of the market for the offer said the Legacy Fund may be oversubscribed because of certain advantages which the FCMB group is dangling like a carrot to the investing public. For instance, they said the fact that dividends would be paid on the fund makes it unique. Another feature identified is the fact that the fund could be used as a collateral to raise funds. They pointed out that for the first time, subscribers are assured of a refund of their money (hundred per cent) in case the fund runs into trouble, a development they said is unlikely.

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