FBN Money Market Fund earns positive rating
Less than a year after its launch, the FBN Money Market Fund, managed by FBN Capital Asset Management, has been assigned 'Aa(f)' rating by Nigeria's foremost research, credit rating and risk management company, Agusto & Co in its first quarter rating result released recently. In the report published on its website, the respected rating company said the Fund is deemed to have 'minimal to low risk of investment loss due to net asset value volatility'.
According to the report, the rating is supported by good credit quality of underlying assets. All investments must have a minimum 'A' rating and at least 25% of net assets are invested in short term Federal Government Securities. 'The Fund has conservative investment guidelines with respect to interest rate risk. All investments mature within 365 days, with a maximum weighted average maturity of 90 days. The portfolio manager is well qualified, with over 13 years of liquidity and investment management experience'.
Commenting on the rating, the Managing Director of FBN Capital Asset Management, Michael Oyebola stated, 'We are pleased with the result of this first rating for the FBN Money Market Fund. FBN Capital Asset Management has created a balanced suite of mutual fund products which are accessible to varying levels of investors, including low-income earners, in support of the SEC's mandate to drive investor participation in collective investment schemes; and in line with FBN Holdings' Group objective of increased financial inclusion.'
The FBN Money Market Fund is an open-ended mutual fund with a minimum subscription of N5, 000 only. The fund invests in short term money market an instrument including Treasury Bills, high quality commercial papers/notes, bankers' acceptance and fixed deposits, and the primary objective is to provide investors with an opportunity to earn an above average current income stream over a short term period consistent with preservation of capital and liquidity.
FBN Capital Asset Management also manages the FBN Fixed Income Fund and the FBN Heritage Fund. The FBN Fixed Income Fund invests in long tenured debt instruments of the FGN, States and highly rated corporate institutions. It also invests in money market securities such as Treasury Bills, Commercial Papers, Bankers Acceptances and Certificate of Deposits with rated banks in Nigeria, with the main objective of preserving capital and maximizing investment returns on capital.
With the FBN Heritage Fund, investments are made in stocks, bonds, money market instruments, real estate and other securities in the Nigerian Capital Markets; and the primary objective is to achieve total return through a combination of income and long-term capital appreciation.