Meristem introduces N1 Billion Exchange Traded Funds on the Nigerian Stock Exchange Market

Meristem Wealth Management has launched a N1 Billion Naira offer for subscription on 2 Exchange Traded Funds; Meristem Growth ETF and Meristem Value ETF. The Two (2) Exchange Traded Funds track the NSE-Meristem Growth Index and NSE-Meristem Value Index respectively. These are style indices that provide investors with a wide array of diversified stocks, professionally selected after satisfying the criteria and will thus be managed by dedicated fund managers. The Meristem ETF offer for subscription opened on February 25th, 2020, and will close on April 2nd, 2020. The offer is 50 million units each of the Meristem Growth ETF and the Meristem value ETF at N10 per unit.

Speaking to our reporters, Sulaiman Adedokun; Managing Director, Meristem Wealth Management explained that, as a company Meristem is constantly seeking new and innovative ways to create wealth opportunities for clients. He further explained that as a way of adding unique value to investors, the Meristem Growth ETF is designed to track growth stock whilst the Meristem Value ETF will track value stocks. This strategy avails investors a dual purpose, with an investment style that allows them to meet specific needs using a broad product portfolio. He concluded by stating that the Meristem ETF can be described as “The Jack of the Trade” as it offers investors opportunities to achieve their investment desires in the equity market while shielding them from excessive risk. The Indices being tracked by the ETFs are reviewed semi-annually, to ensure that all stock selected under each index keeps delivering on their promise.

Earlier in the month, Meristem in partnership with the Nigerian Stock Exchange organized the smart investing workshop on “Using Exchange Traded Funds as a proxy for investing in Nigerian equities” in a bid to sensitize different classes of investors on the benefit of ETF investments. Discussions arising from the workshop bordered around the cost advantage, diversification benefits, dividend policy, amongst other advantages of ETF investing. 

Commenting on the subject issue, Taiwo Yusuf, Head Asset Management stated that “All ETFs earn the underlying dividends of its constituent stocks and the dividends are paid net of all fees”. 

Furthermore, speaking on the purchase requirements of the Meristem ETFs Damilola Hassan: Head Wealth Management, Meristem, mentioned to our reporters that “The Meristem ETFs offer hassle-free and cost-effective investment option to investors. With a minimum of N10,000, Investors can have access to a wide range of stocks across different sectors including banking, industrial goods, conglomerate, agricultural sectors and a host of others that meet their investment style criteria. She also stated that The Exchange-traded fund typically mirrors the performance of the index it tracks. “With the Meristem Growth and Value ETF, you are able to easily track the performance of the selected stocks without going through the rigor of stock analysis and selection”

At the close of the offer, the ETF will be available for trading on the Nigeria Stock Exchange. You can trade via the Meritrade app, a fully electronic trading platform that delivers speed, efficiency, and transparency. The platform which launched in 2014 is available on Playstore and iOS, with Meritrade investors can easily access and trade all listed stocks on the Nigeria Stock Exchange, including the ETFs in real-time.

Meristem for the past 16 years has been consistent in value creation and innovation within the capital market space. In 2018, the Nigerian stock exchange awarded Meristem as the best digital broker of the year. In 2018 also, Meristem became the first Nigerian asset management firm to attain compliance with the Global Investment Performance Standards (GIPS) by the CFA Institute. In 2017, Meristem handled the single largest trade in the history of the Nigerian Stock Exchange. 

The firm has remained a leading player in Nigeria’s competitive investment market with a solid reputation as a highly professional and client-centric firm.

To access the ETF subscription form, click HERE.

Visit Meristem’s official website for more info: meristemng.com
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