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It is time to expand your investment to foreign markets

5 December 2018 – As South Africa faces another uncertain year, with elections, market confidence is at a low ebb and Rand investments show little security in the face of possible land appropriation. “Now is the time to invest offshore,” says Eric Streso, a top-flight financial planner with more than 20 years’ experience in financial consulting.

“The possibilities are appealing at the moment and the volatile exchange rate makes the deal more attractive, especially to those who are looking for long term results. The ideal investment for someone with $30 000- $50 000 is with a top UK investment firm, Carlton James, which has recently launched its Diversified Alpha Fund (DAF), the strategy of which is to invest in a range of different asset classes by utilising an ‘ABC’ (Alpha, Balanced, and Core) investment approach. The ‘core’ aspect of the strategy underpins the expected net dividend payment of 8% p.a. to investors (paid quarterly).

“Over the last five years, the firm has delivered an annualised net dividend of 13.39% (without leverage) on capital deployed through its lending programme & US Commercial Real Estate Fund. DAF is a ‘multi-asset’ strategy, which has at its core, a senior and secured debt approach running alongside ‘alpha’ generating components. DAF is now looking to raise USD $100 million in a Cayman Regulated fund structure.

“The fund is also underwritten by Old Mutual International, which is a gold standard group for South Africans.

“Carlton James utilises its cost-effective structure, network and the ability to construct smaller ownership positions that make the same funding opportunities extremely flexible and profitable versus the traditional financing models. Its architectural approach to funding, be it the commercialisation of technology or the acquisition of development sites, engages a mosaic of ownership, workable commercials, a structured financing process and ultimately the investment being satisfactorily secured through the issuance of a collateralised debt note. This combined approach and strategy offers enhanced investment yields for both company shareholders and investors with a low-medium risk profile.

“Important to note is that its management, all highly experienced financial and risk managers, have been delivering market beating returns over the 1, 3 and 5 year periods – with its DAF Returns beating Index Returns by 18.18% (1yr), 32.08% (3yr) and 25.01% (5yr).

“Your investment can stay long-term in a foreign asset that is appreciating in Rand value, as the past 20 years have indicated that the Rand continues to slide against the major currencies. Now is the time to consider expanding your financing opportunities to include foreign markets with true investment potential,” concludes Streso.

Eric Streso holds two law degrees, an international MBA in Financial Services and is a Certified Financial Planner through the FPI.

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