FREQUENTLY ASKED QUESTIONS

DVCF OIL & GAS FUND

 

Presenter: 

Mr Anthony Eze, you are the Managing Director/CEO DVCF Oil & Gas Plc, You are welcome to this special programme. You were on this programme last quarter of 2006 discussing DVCF Oil & Gas Fund. Briefly explain to us what is new with the Fund.

 

MD:

Today’s discussion is to express our appreciation to our numerous investors who participated in owning a part of the oil & gas sector wealth of the Nigerian economy using the investment platform of DVCF Oil & Gas Fund. The Fund was successful, approved by the Securities and Exchange Commission, Certificate distributed and finally listed on the Nigerian Stock Exchange. Let me assure you as we speak that the Fund is fully invested and earning income in the oil & gas sector as promised in the prospectus.

Essentially the newest thing is that there has been increasing demand from the existing and prospecting investors that a fresh platform should be provided them to continue investing on scheduled arrangement. Accordingly the Oil & Gas Fund as open ended fund is now extended to run in the next 6 months to allow more investment by existing investors and to allow new investors to participate.

 

Presenter

You mentioned that the Oil & Gas Fund is Open ended and extended to run for 6 months, please explain to our listening audience in detail

 

 

 

MD

The Oil & Gas Fund has no fixed capitalization. As Open Ended fund it can accommodate as much as =N=5-10billion and above. The flexibility inherent in the new structure is that a desiring investor for say 12,000 Naira can elect to pay over 6 months in equal instalment of 2,000 Naira each month without stress. Same is another investor with =N=120,000 can deicide to pay monthly instalments of 10,000 Naira monthly.

 

Presenter

Do you mean to say that every month I will pay 1000 Naira to the Fund for 6 months if I am investing 6000 Naira. Explain the modalities, please. Our people will want to understand fully as this is sounding very interesting

 

MD

Investors have been grouped into two. Those that are internet oriented are enabled to complete the forms online by going to our website, www.dvcfonline.com, click application online and complete the form. They will approach any bank of their choice, say ECOBANK, GT Bank, Zenith Bank, Union Bank and First Bank and pay into the dedicated accounts. As soon as they complete payment, they will be issued certificates. Simple

The other group are the group that are not able to access the internet. To such group we have prepared brochures that they will complete with details about themselves. On completion they will pay into the account of any of the designated banks and forward the application to any of our branches. In any procedure adopted, individuals may have to indicate the desired investment target say 12,000 Naira and for those opting to invest over 6 months, they will simply visit the banks 6times to execute the investment mandate.

 

 

 

Presenter

Why is this investment different from others involved in share purchase?

 

MD

Our passion in creating the Unit Trust Oil & Gas Fund is to bring into the investment fold the forgotten and uncared for Nigerians. Secondly we are enabling them to be part of a sector which ordinarily is not accessible by its requirement of huge capital outlay. Any involvement in the Petroleum Marketing Shares is =N=100million and above. Doing business in owning oil wells, Rigs, barges is well over =N=100million. In the Fund we are able to come together as one family and pool our Funds together and progress.

Most importantly we are committed to making the desired returns on investment. That little saving of =N=2000 naira which no bank will accept, that 100,000 Naira that you will earn 6% on, today we are assuring you a superior yield of 26% and above.

Remember that we pay Dividend of 95% of income earned every 15th January of the year so that students, artisans, workers can pay rent, school fees, buy cars and meet the teething needs at the beginning of the year.

 

Presenter

Who are the major beneficiaries of this Fund?

 

MD

Those Students, workers and all Nigerians that are able to save the little amount and are encouraged to invest it wisely. The indigenous companies in the oil & gas sector that banks will not lend money because they do not have collateral houses in Ikoyi. To them all DVCF is assuring them of a warm partnership that will actualize their dreams as investors and entrepreneur businessmen.

 

 

 

Presenter

Will I have opportunity to sell my investment anytime I want and how?

 

MD

The Oil & Gas Fund is quoted on the Nigerian Stock Exchange. Any investor that intends to quit will receive the principal and the proportion of the profit that has been made at the time of exit. In like manner an existing investor can always buy more as we have been discussing so far. It will take less than 5days for the investor to receive his money in case he wants to quit.

 

Presenter

We understand that there is a promo associated with this investment. Explain to us how it works

 

MD

We have categorized the investment to cover the needs of all our investors. If you have invested more than =N=24,000, you are qualified to draw for a star prize of a car. Below that and up to =N=15,000 qualifies those in the group for 5-2hp Air conditioners, below that to =N=10,000 qualifies the group of investors to draw raffle for 5 Deep freezers, below that to =N=3000 qualifies the group of investors to draw raffle for 5 Microwaves. All the draws will be drawn 6 months from now, thus allowing investors to reach their targets.

 

Presenter

When do I receive my certificate for this new purchase?

 

 

 

 

 

MD

As soon as payment is completed on your target investment. For instance if your target is =N=6000, the moment/month that you complete paying, your certificate will be complete and mailed to you.

 

Presenter

If I complete my payment in June, do I still get any dividend in January as promised?

 

MD

Yes of course. The date of the closure of the Register determines those that are qualified for dividend. Remember that the price of the Unit will be changing every month to indicate the profit that has been earned for that period. In other words the earlier the investors take advantage of the current price and invest, the better they are placed to buy at par.

 

Presenter

Can you confirm that my certificate can be used as collateral?

 

MD

The Unit Certificate is evidencing ownership of units of the Oil & Gas Fund quoted on the Nigerian Stock Exchange. It is liquid and has stand alone integrity of qualifying for collateral for any credit accommodation by financial institutions.

 

Presenter

When I buy Online, how can you have my signature for verification in time of redemption?

 

MD

We have coded the online form to have secret questions and answers which only you can answer even while asleep. You will provide both the questions and answers which are known to the Fund Manager only. This will be asked on the day of redemption for confirmation. 

 

Presenter

If we invest on this does it make us make us shareholders of DVCF Oil & Gas Plc or Unit holders of the Fund.

 

MD

Investment in the Fund qualifies you as Unit-holder in the Fund and accordingly entitles you to the returns made on the investment and the timely payment of dividend and also to the ownership of the oil and gas sector projects that have been invested into.

 

Presenter

How soon will the investors start reaping benefit of dividend income?

 

MD

The Fund is proposing September as the end of year and dividend payable by January 15 each year. Any time of investment is immaterial so long as the Register is open, thus existing investors must be paid same time.

 

Presenter

What is the dividend payment plan for those that make monthly payments?

 

MD

All new investments rank equally with all other existing investments. The equalization factor is the Quoted price at the point of entry which varies on monthly bases as the Net Asset Value is computed.

 

 

 

Presenter

Since the Fund is an Open Ended Fund, Will it not accommodate an investor that commits funds after 6 months?

 

MD

It sure will. An open ended fund has no closure as it is a Fund in Perpetuity. The major difference is that the investor may not qualify for the Promotion of owning a car, or winning other prizes attached to the early investors over the 6months deadline. So investors are encouraged to hurry now and take opportunity of this window of good tidings.

 

Presenter

Please I will like to be clear on the status of an investor that starts the six months plan in February, what happens when the price of the fund increases within the 6 months

 

MD

The investor will continue with the monthly payment of the desired equal amount and will be required to top it with the incremental amount. For instance we envisage price change in the range of 3% to 3.5% monthly which is not very significant.

 

Presenter

How can I redeem my units and at what price would it be redeemed?

 

MD

The investor will simply write directly to the Fund Manager and forward his Statement of Unit Holding indicating his desire to redeem the units. He can also do so through accredited Stockbrokers. The price of redemption will be the principal sum plus the accrued income to date expressed already in the Net Asset Value of the Fund. Such information will be shown clearly on our website at all times.