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FBNQuest Asset Management renames FBN Heritage Fund to FBN Balanced Fund

FBNQuest Asset Management

FBNQuest Asset Management, a subsidiary of FBNQuest Merchant Bank and part of the FBN Holdings Plc group, has proposed a change in the name of the ‘FBN Heritage Fund’ to the ‘FBN Balanced Fund’. The proposed change of name was approved by unit holders of the Fund at an Extraordinary General Meeting (EGM) of the Fund which held on 20th June 2019.

The investment strategy of the FBN Balanced Fund, which was established in 2008, is designed to provide investors with portfolio exposure to a mutual fund that invests across multiple asset classes. This asset mix ensures that investors profiled in the medium-risk category can consider this Fund, given its implicit portfolio diversification strategy, an appropriate tool for achieving their financial objectives.

The FBN Balanced Fund invests in a mixed portfolio of instruments such as Stocks of high quality Nigerian companies, Long-term debt instruments of Nigerian federal and state governments, Long-term debt instruments of Nigerian Corporates and High quality money market securities such as Treasury Bills, and Commercial Paper.

The Fund is designed to deliver measured gains, when compared to a high risk strategy comprising an all equity portfolio, but provide significant potential return, when stocks are bullish, when compared to a low risk strategy comprising an all money market portfolio.
Indeed, over the past 10 years, the FBN Balanced Fund has appreciated by over 140%, outperforming its benchmark. Indeed, an investment of N10m will have appreciated to over N24m over the 10 year period. In addition to the change in the Fund’s name, there has been a change of the asset allocation ranges of the Fund.

This has been modified to range from 20-40% for long term debt instruments, 20-60% for money market instruments, 40-60% for stocks and 0-5% for cash. Real estate investments were removed from the asset allocation in a bid to streamline the assets the Fund will invest in and to prevent a drag on the portfolio.

Speaking at the EGM, Ike Onyia, Managing Director of FBNQuest Asset Management spoke about the changes made to the Fund. He stated, “In 2008, there were 34 Funds, today we have almost 100. We thought it important to change the name of the Fund into one that is reflective of the investment strategy of the Fund, hence the change to FBN Balanced Fund”.

“The underlying strategy remains the same, the asset allocation structure has been streamlined to enhance the distinct investment style of the Fund and enable investors situate how to best to benefit from this investment approach, within the context of their goals, risk profiles and expected portfolio returns”.

The FBN Balanced Fund was launched in 2008 as a multi-asset mutual Fund, suitable for investors with an appetite for earning greater rewards over a long-term period. The focus of this Fund is to invest in equities, bonds, money market instruments, and other securities in the capital markets.

The Fund is featured on our easy to use, self-service application, FBN EDGE, which is available at either of the apple or google stores. Through the app, investors can begin the journey to fulfilling their financial goals and implementing their disciplined investment plans by investing a minimum of N50,000 in the FBN Balanced Fund.

FBNQuest Asset Management is a full service investment management company and is the asset management subsidiary of FBNQuest Merchant Bank. It is also a part of FBN Holdings Plc., a leading financial services group, offering a diverse range of financial services to a broad spectrum of clients.


Oluwasegun Olakoyenikan