The Securities and Exchange Commission (SEC) has authorised FCMB Asset Management Limited (FCMBAM), the Asset Management division of FCMB Group Plc, to execute the supplemental Trust Deeds of its mutual funds.
According to a statement, the approval follows the successful conclusion of unitholders’ meetings where investors in each of the impacted mutual funds voted in favour of the proposed changes, which includes changing the name of the company’s legacy mutual funds and lowering the minimum subscription units of the Funds.
It emphasised that the modifications were a purposeful step in FCMBAM’s continuous brand consolidation, bringing the company’s public-facing products into line with the FCMBAM identity, which has come to represent disciplined, open, and globally recognised asset management services in Nigeria.
It stated that the previous names, Legacy Money Market Fund, Legacy Debt Fund, Legacy Equity Fund, and Legacy USD Bond Fund, were changed to FCMBAM Money Market Fund, FCMBAM Debt Fund, FCMBAM Equity Fund, and FCMBAM USD Bond Fund with full legal effect from the date of SEC approval.
It emphasised that in addition to the rebranding, FCMB Asset Management Limited (FCMBAM) updated the minimum unit subscription thresholds for three of its mutual funds, as reflected in the supplemental Trust Deeds and authorised by the SEC.
The goal of these adjustments is to make investing more accessible and affordable for a larger group of investors.
In an effort to lower the barrier to entry for more retail investors, the minimum subscription for the local-currency bond-based FCMBAM Debt Fund was lowered from 25,000 units to 1,000 units, and the minimum subscription for the local-currency equity-based FCMBAM Equity Fund was lowered from 10,000 units to 1,000 units.
In keeping with FCMBAM’s larger goal of increasing retail investors’ access to dollar-denominated investment opportunities, the threshold for the US dollar bond-based FCMBAM USD Bond Fund has been lowered from 1,000 units to 100 units. A minimum subscription of 1,000 units is still required for the FCMBAM Money Market Fund, according to the statement.
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