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What to know about Utica custodian assured fixed income fund

What to know about Utica Custodian Assured Fixed Income Fund

If you are an investor who is seeking a Fund that maximises your current income in line with prevailing Nigerian fixed-income market rates, Utica Custodian Assured Fixed Income Fund (UCAF) is one to consider.

UCAF is an open-ended fixed-income fund that offers investors who have a strong preference for regular income, the opportunity to invest in low to medium-risk, fixed-income instruments with competitive returns and Life Insurance as value add.

Recently, Utica Capital Limited unveiled the Utica Custodian Assured Fixed Income Fund. Utica Capital Limited is an asset management company, licensed by the Securities and Exchange Commission (SEC) under the Investment and Securities Act (ISA) 2007 to provide top-notch investment and fund management services to High Networth Individuals (HNIs), Corporates, mass affluent and retail clients in Nigeria.

UCAF, which is managed by Utica Capital Limited also maintains a reasonable degree of liquidity by investing in a broadly diversified portfolio of low to medium-risk income instruments.

Utica Custodian Assured Fixed Income Fund is also suitable for medium to long-term cash investment and offers an efficient alternative to investing solely in traditional cash deposits with commercial banks. The Fund aims to provide a combination of high-level security and a competitive yield.

The key benefits of the Fund include: Life insurance covers up to 10 years of the unitholder’s principal investment as at the time of claim but not exceeding N35 million; regular income, bi-annual income, bi-annual dividend payment, and easy and flexible entry and exit.

The Fund will invest primarily in low to medium-risk securities including FGN, Corporate and Municipal bonds, certificates of deposits and commercial papers (to a lesser extent) or other highly liquid securities with financial institutions rated by a registered rating agency as specified from time to time by the Commission.

Read also: Utica Capital berths with investment, insurance blended fixed income fund

Utica Custodian Assured Fixed Income Fund asset allocation shows 70percent – 80 percent to FGN Bonds, 10 percent – 20 percent to Corporate/Municipal Bonds, 3 percent – 5percent Money Market, while only 1 percent – 2percent is retained as cash.

“Utica Custodian Assured Fixed Income Fund (UCAF) is a product that represents not only our commitment to excellence but also our contribution to the success of the Funds and Portfolio Management Industry in Nigeria,” Ola Belgore, managing director, Utica Capital Limited said recently during the unveiling of Utica Custodian Assured Fixed Income Fund (UCAF).

He noted that “Utica Custodian Assured Fixed Income Fund (UCAF) is a perfect blend of returns and protection. UCAF as an investment and insurance blended collective investment scheme embodies the very essence of our mission: to become one of the most sought-after brands in the Asset, Portfolio and Funds Management industry in Nigeria and Africa within the first ten (10) years of existence”.

A minimum amount of N100,000 is required for the initial subscription and N10,000 for additional subscriptions. In addition to providing regular income to investors who have a strong preference for regular income, the fund will provide life insurance cover (death and permanent disability by accident) up to a maximum limit of ten (10) times the Unit holder’s principal investment in the fund not exceeding N35million.

Some of the key features that make the Utica Custodian Assured Fixed Income truly exceptional, according to the managing director are: easy and flexible entry and exit from the fund, a blend of investment and insurance – the Utica Custodian Assured Fixed Income Fund will provide life assurance benefits for individual subscribers.

Read also; Fixed-income earners most hit as cost of living worsens

Another key feature is the bi-annual income distribution – for investors looking for investments that offer steady streams of income, the Utica Custodian Fixed Income Fund will avail them of the opportunity alongside competitive returns. There is also the option of reinvestment of coupons for subscribers who want compounded returns on their investments.

Aderonke Osho, portfolio manager, Utica Capital Limited said, “Unlike other plain vanilla Funds, the Utica Custodian Assured Fixed Income Fund (UCAF) has been meticulously designed to provide additional value by way of life Insurance, covering death and disability caused by accident of up to ten (10) times on their principal investment to subscribers not exceeding N35million. The life insurance will benefit all active unitholders in the Fund”.

Also speaking further, Belgore said, “In the ever-evolving world of Investments, the need for innovative, reliable, and adaptable investment solutions has never been more crucial. Our team, here at Utica Capital, understands the unique challenges and opportunities that investors face in today’s dynamic marketplace. We have dedicated ourselves to designing products and services that align seamlessly with investors’ unique needs and financial objectives,”.

Read also: Here’s what to expect in fixed income market today

“The Utica Custodian Assured Fixed Income Fund is not just about these features; it is about meeting the needs of would-be investors and Utica’s unwavering commitment to the financial wellbeing of the investing public. We have partnered with other capital market professionals in the formation of the fund, and I would like to convey my appreciation to them all – the Trustee, Custodian, Registrar etc particularly our partner on the Insurance side of the Fund – Custodian Life Insurance Limited,” he said.

“Their relentless pursuit of excellence has culminated in a product that we are truly proud of. Also worthy of commendation is the leadership of the Securities and Exchange Commission. The positive disposition of the management to new ideas is quite commendable and provides the environment for an innovative firm like Utica Capital Limited to thrive,” Belgore said.

Adesegun Akin-Olugbade, chairman, board of directors, Utica Capital Limited said, “We have gathered here to celebrate the unveiling of an investment and insurance blended collective investment scheme; the Utica Custodian Assured Fixed Income Fund (UCAF) that embodies our vision and unwavering commitment to the financial success of investors”.

“As the chairman of this esteemed institution, I am profoundly proud of the remarkable strides our team has taken in our relentless pursuit of excellence. We are not just unveiling a mutual fund today; we are unveiling a testament to our dedication, expertise, and innovation. In our industry, where the dynamics are ever evolving and the challenges are relentless, it is our duty to provide the investing public with the opportunities needed to achieve their financial goals,” he added.

“We understand that every investor has unique aspirations, dreams, and financial needs, and that is why we have meticulously crafted this new product, the Utica Custodian Assured Fixed Income Fund to cater to a diverse range of financial objectives,” Akin-Olugbade added.