1. Where is Meritex Capital Limited located?
Answer: 2nd Floor, No. 7, Salvation Road, Opebi, Ikeja, Lagos.
2. What types of funds do you manage?
Answer: We manage a range of funds including equities, bonds, term deposits, and other money market instruments, tailored to different risk profiles and investment objectives.
3. How do I start investing with your company?
Answer: You can start by scheduling a consultation with one of our advisors to discuss your financial goals. After that, you will complete an application form, provide the necessary documentation, and fund your account.
4. What is the minimum investment amount?
Answer: The minimum investment amount varies depending on the fund or service you choose. Please contact us to discuss the specific requirements.
5. Can I access my money at any time?
Answer: Yes, most of our funds offer liquidity, allowing you to withdraw your money with certain notice periods.
6. How often will I receive updates on my portfolio?
Answer: We provide performance reports as soon as the need arises, along with regular market updates. You can also access your account and view real-time information through our client portal.
7. How do I track the performance of my investments?
Answer: You can track your investments through our client portal, where you can view real-time performance, historical data, and account balances.
8. What is your investment philosophy?
Answer: At Meritex Capital Limited, our investment philosophy is grounded in a disciplined, research-driven, and client-need approach. We strongly believe in the benefits of diversification, risk management, and long-term planning. Our team of experienced investment professionals deploys a combination of quantitative analysis, fundamental research, and market insights to build robust investment portfolios that yield peace of mind and align with our client's objectives.
9. Can I customize my investment portfolio?
Answer: Yes, we offer customized portfolios based on your risk tolerance, time horizon, and financial objectives.
Frequently Asked Questions on Treasury Bills
1. What are Treasury Bills (T-Bills)?
– Treasury Bills are financial instruments issued by the Federal Government of Nigeria (FGN). They serve as short-term debt securities, allowing the government to raise funds while providing a secure investment avenue for individuals, joint applicants, businesses, and corporations.
2. Who can invest?
– Individuals
– Joint applicants
– Businesses and corporates
N.B: All T-Bills investors must have an account with Meritex Capital Limited.
3. What is the interest rate?
– As of 04 August 2023, the indicative rates (please note that rates change rapidly) are:
– 91 days Treasury Bills: 3.80%
– 182 days Treasury Bills: 5.90%
– 1-year Treasury Bills: 8.15%
4. What are the investment channels?
Primary Market: Investors directly purchase T-Bills from the Central Bank of Nigeria (CBN). The minimum investment amount is #50,001,000. Primary market buyers can only buy T-Bills when there are new issues from the government, which often have longer tenors and higher interest rates. The Primary Market Auction is held every two weeks on Wednesdays, unless advised otherwise by the CBN.
Secondary Market: Investors can purchase existing issues through authorized dealers like banks, stockbrokers, and discount houses. The minimum investment amount is #100,000, in multiples of #10,000 thereafter.
Investment Tenor
Short term: Less than 90 days
Medium term: 91 days to 180 days
Long term: 181 days to 364 days
How to Invest
5. How can I invest?
– You can apply for T-Bills through the primary or secondary market:
– Primary Market Auction: Download and complete the Treasury Bill Auction Bid Form. This form is only applicable for primary market auctions.
– Secondary Market: Send a letter of instruction to your relationship manager, copying Invest@meritexcapital.com, stating your intention to purchase Treasury Bills. The letter should include:
– The investment amount or the face value of the security to be purchased.
– Your preferred investment tenor for the security.
– Complete the Custodial Agreement Form (applies where the client does not have a custodian).
– Ensure your Meritex Capital Limited account is funded with the investment value before submitting your request.
6. What forms are required?
– Custodial Agreement Form (if applicable)
– Treasury Bills Request Form (for both primary and secondary market requests)
Payment and Settlement
7. How do I get my interest payment and principal?
– You will receive this via your Meritex Capital Limited account. Investors are debited the discounted value of the T-Bills and paid the interest upfront. For example, if you invest #100,000 in T-Bills at a discounted rate of 10%, you will be debited #90,000. At maturity, #100,000 is credited to your account at face value.
8. What is the settlement process for the investment?
– At maturity, the full face value of the investment is credited to your account.
Investment Flexibility
9. How much can I invest?
– Primary market buyers: Minimum investment of #50,001,000.
– Secondary market buyers: Minimum investment of #100,000 in multiples of #10,000.
10. What does N10,000 mean?
– Investors can only invest in increments of #10,000 (e.g., #110,000, #120,000, #130,000), but not #115,000, #213,000, etc.
11. Are there any charges?
– Below are the charges on T-Bills investments:
– Transaction fee: #300
– VAT on transaction fee: 7.5% of the transaction fee
– Custody fees: 0.05% of the face value amount
– VAT on custody fees: 7.5% of custody fees
– Commission: Flat fee of #100 (for primary market auctions only)
– VAT on commission: 7.5% on commission (for primary market auctions only)
Investment Liquidity
12. Can I terminate my investment at any time?
– Yes, you can. T-Bills are highly liquid and can easily be traded in the secondary market and converted to cash.
13. How do I terminate my investment or liquidate my T-Bills holding(s)?
– To terminate or liquidate your investment, send the following documents to your dealer bank, discount house, or stockbroker:
– A signature-verified instruction letter to liquidate your investment (an email indemnity is required when email instructions are sent).
– Your investment certificate.
14. What is the implication or penalty for terminating my investment before maturity?
– [To be provided by Seun or Petrolina.]
15. Will I also get my investment sum?
– Yes, you will receive the full face value or par amount at maturity of the investment.
16. Can I invest online?
– Yes, you can invest online provided you follow the steps outlined above. Alternatively, you may send an email to invest@meritexcapital.com, and we will guide you through the process.