Meristem Wealth Management Limited has announced that it has launched a N1 billion offer for subscription on 2 Exchange Traded Funds (ETF); Meristem Growth ETF and Meristem Value ETF.
The Two (2) Exchange Traded Funds tracks the NSE-Meristem Growth Index and NSE-Meristem Value Index respectively. Furthermore, these style indices 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 25, 2020 and will close on April 2, 2020 and the offer is 50 million units each of the Meristem Growth ETF and the Meristem value ETF at N10 per unit.
Speaking to Daily Sun, Managing Director, Meristem Wealth Management, Sulaiman Adedokun, explained that as a company, Meristem is constantly seeking new and innovative ways to create wealth opportunities for clients. He noted that by way of adding 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 need using a broad product portfolio. Also, 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”, Adedokun said. Meristem in partnership with the Nigerian Stock Exchange (NSE) had earlier 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, Head, Asset Management, Taiwo Yusuf, stated that all ETFs earn the underlying dividends of its constituent stocks and the dividends are paid net of all fees.
While speaking on the purchase requirements of the Meristem ETFs, Head, Wealth Management, at Meristem, Damilola Hassan, said Meristem ETFs offer hassle-free and cost-effective investment option to investors.