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The Intelligent Choice – September Newsletter October 5, 2018

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United Capital Ups The Game With Launch Of the New Improved InvestNow.Ng
United Capital Plc, a leading financial services group just launched its new, improved online investment platform, InvestNow. The company, which prides itself in being innovative and customer-centric rolled out this platform as part of its retail strategy and unwavering commitment to excellent service experience.

According to the Group Chief Executive Officer, Mr. Peter Ashade who talked to newsmen at the event launch which held in the Group’s Lagos office, “We are extremely excited about this new upgrade. We are always thinking about how to make the customer experience better and InvestNow.ng really speaks to that. Our customers can now invest in our different products on the platform either through the website or with the App. You can buy mutual funds online, trade on the equities market, set up a trust and even write a will”.

To learn more about InvestNow, please visit investnow.ng or download app here.

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It has been a choppy year for the Nigerian financial markets which started bullish but trended downwards owing in part to the pre-election bearish sentiments. Nevertheless, as part of our drive to be more customer centric, we have continuously improved on our products and processes and are also focusing on innovation and strategic transformation.

We launched an improved version of our online Investment portal, InvestNow. Some of the new key features of the portal is the introduction of new products such as the Online Will; and new features such as the recurrent funding; and zero account balance requirement. In addition to these, we also launched a mobile app which will make investing even much easier and more accessible for the user. Ultimately, one of the unique value propositions which we are offering with InvestNow is that our customers can have all their investment portfolio in one platform. We are quite excited about this investment tool and will continue improving on it so we can serve our customers better.

Also, as part of our commitment to improve financial literacy amongst the Nigerian masses, we launched our radio show, Money Minute with United Capital Plc, which airs bi-weekly on Smooth 98.1 FM. On the show, we educate listeners about investments generally and encourage them to subscribe to our product offerings.

As we commence the final quarter of the year and draw closer to the 2019 general elections, we expect that the pre-election bearish sentiments would reach an inflexion point, presenting an opportunity for discerning investors to position ahead of the post-election rebound across market segments as normalcy will return to the economy.

Hang in there!

Peter Ashade

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INVESTMENT BANKING

Our Investment Banking division recently completed the Extraordinary General Meeting of the Bondholders of Plateau State (“the State”) towards the restructuring of its N28.2 bn Bond issued in 2015 by extending the maturities of these Bonds to three (3) years to mature in 2025. The restructuring allows the State to effectively manage its scarce resources under the present economic condition. Upon restructuring of the Bond, the Irrevocable Standing Payment Order (ISPO) deductible monthly will reduce, and the excess therefrom can be deployed to other developmental and infrastructural projects for the benefits of the Citizens of Plateau State. The available funds would also be deployed to revenue generating capital projects which would not only improve the income level of the state but also create employment and enhance the general living standard of its citizens.

We are also pleased to announce the successful US$50million credit facility restructuring of a multinational oil trading company based in the Democratic Republic of Congo. This shows United Capital’s continuous strive towards achieving realisable goals for our respective clients.

On our corporate bond desk, we are currently working on concluding one of the largest FMCG bond issuances in 2018 and pioneering the first green infrastructure bond issuance in the Nigerian power sector; which we expect should close out before the end of Q4 2018. The green infrastructure bond issuance being the first of its kind in the Nigerian power sector, would no doubt contribute to the breadth and depth of Nigeria’s bond market.

At United Capital, we continue to pride ourselves as trail blazers, setting the pace for others to follow. We strive to consistently be innovative, think outside of the box and provide bespoke financing solutions for our clients.
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ASSET MANAGEMENT

Diving deeper into the “Ember” months

How to manage your assets in Q4

After showing signs of improvements in first half of the year, economic variables somewhat relapsed in the third quarter. The stock market was down by 14%; yields in the fixed income market increased by close to 2%, while the exchange rate depreciated by 0.8%, which resulted in a decline in external reserves depressing external from $47.6bn to $44.4bn. inflation climbed up for the first time in 18 months, settling at 11.2%.

But the good news is that oil prices are going up again! Brent crude is trading around $80 per barrel and analysts are forecasting a $100 per barrel soon. So we ask: does this mean the market is about to turn the corner in Q4? Well, not exactly, as political tensions continue to deter local and foreign investors. In Q4-18, we expect inflation rates to rise further while the external reserves may likely take more beating as pressure on the exchange rate increases. Accordingly, sentiment across market segments will remain bearish.

However, it is not all gloom and doom as current market conditions present an opportunity for discerning investors who are looking beyond the election cycle. The Monetary Policy Committee would likely keep the policy rate at 14% while it continues to reduce the level of liquidity in the system. Accordingly, we expect yields to continue to trend northwards. Therefore, our golden advice to clients is this: stay short in the fixed income market and long in fundamentally strong stocks.

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TRUSTEES
You Need to Draft a Will today
Stories abound in our society today of people who passed away without adequately disclosing the manner of disposing assets acquired during their lifetime. Often, such families have descended into chaos with the law court as the theatre for all the subsequent drama and the newspapers and magazines documenting all the twists and turns.

The question therefore, is what should such persons have done differently? They could have put in place, a simple and well drafted Will to avoid the rancour their loved ones now have to be faced with. By writing a Will, one can ensure that there is adequate financial provision for your dependents as well as communicate your wishes about the distribution of assets when the inevitable happens. In the absence of a Will, your dependents would be subjected to the long and difficult process of obtaining Letters of Administration over your Estate at the time.

United Capital Trustees offers a comprehensive range of Estate Planning Services such as Trusts, Wills and Executorships. We have over the last five decades set ourselves apart as the Trustee of choice by providing bespoke services to diverse clients.

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SECURITIES

FGN SAVINGS BOND

FGN Savings Bond is an investment that lasts for a period of 2 to 3 years. It’s auctioned first week of every month. Interest/coupon from the Federal Government of Nigeria Savings Bond (FGNSB) is paid quarterly and minimum amount to invest is N5,000.00 and a maximum of N50,000,000.00.

FGN Savings Bond is highly recommended for students and for those who cannot take risk. Interest is guaranteed as well as the capital invested.  The FGN Savings Bond October auction is valid till Friday, October 5, 2018. To participate, send an email to unitedcapitalsecurities@unitedcapilaplcgroup.com or visit investnow.ng to open a brokerage account.

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WEALTH MANAGEMENT

Wealth Management – A Client experience on Retirement Planning with United Capital

I had worked extremely hard to build my wealth over the years. My wife Bukky, and I were just retired and had a number of existing investments scattered in different places along with other retirement policies. We had no real structure and had arranged some fund management, but it was all very untidy. My accountant recommended I speak to United Capital (Wealth Management).

We met with Ebube at our initial meeting. She took time to understand all the dynamics of the situation, getting to grips with existing trusts, investments, retirement plans and above all what was important to us. We talked at length over a number of meetings. We realized that the risks we were taking were now too high for our needs and they recommended a more cautious approach which would better protect our capital we had worked hard to create.

Click here to find out what Ebube learned from our Wealth Management Financial Advisor during her session.

Start your journey today and speak to a United Capital Wealth Advisor at 08087186969/07068086832, email: wealthmanagement@unitedcapitalplcgroup.com or visit Creating Capital Community.