FCMB Asset Management Limited has secured approval from the Securities and Exchange Commission for the execution of supplemental Trust Deeds covering its mutual funds, including the rebranding of its legacy funds and reduction in minimum subscription units.
The company, which is the asset management subsidiary of FCMB Group Plc, disclosed this in a statement on Thursday. According to the firm, the approval followed the successful conclusion of unitholders’ meetings, where investors in the affected mutual funds voted in favour of the proposed changes.
As part of the restructuring, Legacy Money Market Fund, Legacy Debt Fund, Legacy Equity Fund, and Legacy USD Bond Fund have been renamed FCMBAM Money Market Fund, FCMBAM Debt Fund, FCMBAM Equity Fund, and FCMBAM USD Bond Fund, respectively.
The company stated that the name changes took effect from the date of SEC approval. FCMB Asset Management said the changes form part of its ongoing brand consolidation strategy aimed at aligning its investment products with the FCMBAM identity.
The firm also announced revisions to the minimum subscription thresholds for three of its mutual funds following SEC approval and updates to the supplemental Trust Deeds.
Under the new structure, the minimum subscription for the FCMBAM Debt Fund has been reduced from 25,000 units to 1,000 units, while the minimum subscription for the FCMBAM Equity Fund has also been lowered from 10,000 units to 1,000 units.
The company stated that the reductions are intended to lower entry barriers and encourage broader retail participation in the funds. It added that the minimum subscription threshold for the FCMBAM USD Bond Fund was reduced from 1,000 units to 100 units to expand access to dollar-denominated investment opportunities for retail investors.
The minimum subscription for the FCMBAM Money Market Fund remains unchanged at 1,000 units.
Commenting on the development, the Chief Executive Officer of FCMB Asset Management Limited, James Ilori, said the changes reflected the company’s commitment to expanding access to investment management services.
“This rebranding is more than a name change; it is a statement of intent. It, once again, signals to the investment community that FCMBAM prioritises the democratisation of access to professional investment management services, in line with our Purpose of fostering inclusive and sustainable growth in the communities we serve.
“We thank our unitholders for their confidence in us all through this process and remain committed to delivering even stronger outcomes for our clients, under our refreshed identity,” Ilori said.