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Leading Through Covid-19: Investment Decisions and Wealth Preservation

Leading Through Covid-19: Investment Decisions and Wealth Preservation



Leading through Covid-19: Investment Decisions and Wealth Preservation



Q & A

1. What is your take on the commodities market?

Commodities are intricately tied to demand, so with the weakness in demand globally commodity prices are likley to remain weak this year.

2. How do we invest in dollar assets for wealth preservation? Is there a minimum that you accept?

This can be done through our Dollar investment product. Here, there are two options. (1) You can invest directly in Eurobond, Minimum value of $250k (2) You can invest in our Dollar Notes. Minimum value $25k.

3. Where’s the place of the Agriculture value system in the whole post COVID-19 era? Are there structured investment opportunities available? Any projected rate of return?

The Federal government has made quite a lot of initiatives and intervention funds to promote investment in agriculture sector over the last couple of years. We believe there will be more concerted efforts from the govt to drive more investmnet post covid. However, agriculture has an expanded value chain so its important you identify your play.
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4. How or to what extent can this pandemic affect mutual fund or money market investments made before the surge of this crisis?

This depends on the type of mutual fund. For equity funds, this would be largely dependent on the equity market return. For money market and fixed income funds, they are likely to be a bit more resilient but, we don’t see a significant imoact at least in the near term.

5. Should someone pullout of money market and save money in dollars post covid?

It depends on the sector as certain sectors like the travel and entertaienment sectors may be hit harder than others. We however expect to see a gradual recovery over when the lock down ends.

6. What is the fate of private businesses post covid-19?

It depends on the sector, the service sector is most likely to be hard hit, but we think recovery should be swift if the Covid challenge comes under control before the end of May.

7. The markets locally continues to fall. When do you forecast the market will hit rock bottom and then investors can re-enter without taking immediate hits?

This is difficult to say. The market would continue to mirror the local macro environment. However, there could be some peculiar factors that would support the market in the near term, such as strong earnings and liquidity.

8. My question is on online forex trading. how does it go and what are the requirements and processes?

We do not engage in online forex trading. What we provide is exposure to USD denominated fixed income instruments.

9. How do we engage your service as a financial advisor?

Victor Aluyi:+234 (0)817 458 2241, victor.aluyi@www.comerciopartners.com  or Tinu Odufuye +234 (0)818 378 0176, tinu.odufuye@www.comerciopartners.com

10. Do you advise investment in RE at this time?

Like we said during the presentation, real estate can serve as a great store of value. So one can approach this cautiously.

11. When buying Eurobonds via TradeFi, will this be connected to customers' USD bank accounts or NGN bank accounts? Whats the plan?

The trades would be funded via the customer’s USD bank account.

12. If online forex trading is profitable, how do i go about it, what is the minimum investment in Naira equivalent?

We do not engage in online forex trading. What we provide is exposure to USD denominated fixed income instruments.

13. Can one initiate the online investment during the covid-19 period?

Victor Aluyi:+234 (0)817 458 2241, victor.aluyi@www.comerciopartners.com  or Tinu Odufuye +234 (0)818 378 0176, tinu.odufuye@www.comerciopartners.com.

14. I would love to know how Agriculture would be affected. I mean local production. More of investment in Agriculture. You talked more about Real Estate and Investing in FX like Dollars. I feel this pandemic will spare the Agriculture distribution chain and make investment in this sector worthwhile?

We should still see some supply disruption seeing the key areas of consumption, Lagos and Abuja are on lockdown. The impact on Agriculture would largely depend on how long this crisis drags on for.

15. For Independent investors who may not be cash rich and whose investment portfolio is primarily held in dollar denominated stocks but are looking to diversify into the Nigerian markets - which options would you reckon are areas of opportunities to look at in terms of value? Especially in this period - and how have Commercio typically approached this area historically?

I think there is some good value in some banking names, particularly from a dividend yield perspective and potential capital appreciation. Names like Zenith, FBN, GTB etc.

16. Do you plan to charge any performance incentive and management fee for the actively managed portfolio and what is the minimum threshold?

The incentive fee can be negotiated. The minimum threshold for us is a N1 billion, again, we can make some concessions here.

Disclaimer:

The information provided is general in nature and does not constitute financial advice. Comercio Partners Group does not assume any liability or responsibility in relation to the information provided, including information provided by third parties. While every effort has been made to ensure the information provided is accurate, do not rely solely on this information to make a financial or investment decision. Before making any financial or investment decision, consult your financial adviser.

The Comercio Partners Group does not give any warranty as to the accuracy, reliability or completeness of the information contained herein. The Comercio Partners Group, its employees and affiliates do not accept any liability for any error or omission, or for any loss or damage suffered by a recipient or any other person.

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