Niche investments
These are products that do not fall into a specific investment category.
Some may only be available for a limited period of time, others, by their
nature, are 'one off' products.
Investment alternatives
They may not be suitable for all investors, but
generally they offer alternatives for investors who wish to broaden their
portfolio, or seek a means of recovering investment losses.
For example:
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Commodities
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Enhanced Return Funds
These are explained below.
Commodity Investments
Commodities can include minerals such as copper, lead, nickel and aluminium,
and energy related products such as crude oil, heating oil and natural gas.
With the rapid development of countries such as China and India, it has been
difficult to react quickly to increased demand for metals and minerals because
of the time it takes to sink new mines, drill oil wells and build pipelines etc.
There has generally been under investment in commodity infrastructure and
rising demand tends to lead to rising prices.
Investing in commodities is usually over a fixed term, and can carry capital
guarantees.
Enhanced return funds
Enhanced Return Funds
enable investors to use the collateral of their existing portfolio rather than
the injection of new money, to participate in a second investment programme.
They employ a series of investment strategies and asset classes specially
selected to maximise returns over rolling five year periods.
This type of fund
can be attractive to investors with Portfolio 'Enhanced Bonds, Single Premium
Bonds, With Profits plans and Regular Return Funds', Savings plans etc, that are
subject to Market Valuation Adjustments and exit penalties.They use leveraging,
but with a range of measures that make its use much less risky. In some
instances they can actually reduce a portfolio's overall risk. Their aim is to
supplement the return without interfering with the chosen investment strategy.
These funds aim to enhance the return from an existing portfolio by between 4%
- 6% pa over five years. Contact us for more information about niche investments.
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