FCAM Legacy Bond Fundâ€™s IPO Records Oversubscription
The Legacy USD Bond Fund, a mutual fund managed by First City Asset Management Limited (FCAM),recorded an impressive 244.44 percent subscription in its Initial Public Offering (IPO).
The result of the IPO, which has been approved by the Securities and Exchange Commission (SEC), implies that the fund attracted US$6.111 million, which represented an oversubscription of 144.44 percent above the US$2.5 million offered to prospective unitholders during the offer period.
A statement explained that this was an indication of the high level of investor confidence in the fund and FCAM.
The Legacy USD Bond Fund is an open-ended investment vehicle registered with the SEC and managed by FCAM. It gives investors the opportunity to invest in US Dollar denominated fixed income securities on a continuous basis. It also provides flexibility with respect to the timing of investments in, and redemptions from the Fund.
The objective of the Legacy USD Bond Fund is to generate stable income over the long-term. The Fund is being managed as a unit trust scheme designed for investors seeking an efficient way to earn stable income in US Dollar, from investing in a portfolio comprising of high quality, registered, and tradeable US Dollar fixed income securities.
The statement also disclosed that a total of 67 applications for 6,111,000 units were received with none of the applications found to be invalid.
Details of the applications and allotment of the Offer, according to FCAM, shows that 17 applicants purchased the minimum number of units of 5,000.
In his comments, the Chief Executive Officer of FCAM, Mr. James Ilori, said: â€œWe are delighted at the level of participation of the investing public, in the Legacy USD Bond Fund Offer. The Fund provides an excellent opportunity for investors to regularly save in US Dollar and has now re-opened to new and existing investors.
â€œFCAMâ€™s internationally trained investment team will manage the Fund in line with the investment objective of income generation. We remain committed to creating additional value for individual and institutional investors.â€