Meristem Extends Subscription for Growth, Value ETFs
By Modupe Gbadeyanka
Subscription for the Exchange Traded Funds (ETFs) of Meristem Securities Limited has been extended by the management.
Deadline for the exercise was shifted forward obtaining approval from the Securities and Exchange Commission (SEC), Business Post learned.
The reason for the extension, we further gathered, was because of the disruption caused by the Coronavirus disease (COVID-19) pandemic in the country and the globe.
Meristem is offering for sale two EFTs; the Meristem Value Exchange Traded Fund and the Meristem Growth Exchange Traded Fund.
From a notice obtained by Business Post, the management said it has secured SEC’s authorisation to postpone the deadline for the exercise for two months.
“Kindly be informed that, due to the current COVID-19 pandemic situation and its impact on the investment environment, the Securities and Exchange Commission (SEC) has approved the extension of the offer for subscription to the Meristem Value Exchange Traded Fund and Growth Exchange Traded Funds by two months, effective from April 3, 2020,” the disclosure said.
“In view of the foregoing, we will like to appreciate your commitments made to the offer and are pleased to inform you that the opportunity to subscribe is still open,” it added.
“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,” the company said.
Business Post learned that the investment firm is offering for sale 50 million units of the Meristem Growth ETF at N10 each and another 50 million units of the Meristem Value ETF, also at N10 per unit.
Application for the exercise, which opened on February 25, 2020, was initially scheduled to closes on April 2, 2020.
Intending subscribers are expected to by at least 1,000 units and multiples of 100 units thereafter.
The aim of this investment tool is to provide a style investment opportunity for investors based on growth and value philosophies, saving investors the rigors of stock valuation, screening, selection, and the risks associated with liquidity, and the inability to diversify their investments.
Meristem said the Growth ETF style focuses on the historical and potential growth in key value drivers of the constituent companies and is less dependent on how the stock is trading relative to the value drivers, while value ETF style places emphasis on the price that investors are willing to pay to purchase a company’s earnings, book value, and dividend among others.
The Funds will invest in qualifying listed stocks on the Premium and Main Boards of the NSE. As such, they are expected to earn dividends from the stocks held.
Meristem is targeting all classes of individual investors, corporates, foundations, societies and local and foreign institutional investors.