It is a well known fact in the business world that to eliminate unsystematic risk, an investor must build up a well-diversified portfolio of investments.
Our portfolio is supported by 3 main pillars:
1. Unit-linked investments and Unit Trusts
2. Shares, stocks, bonds and forex
3. Real Estate
Unit-linked investments and unit trusts
These are linked to the performance of the units in the market with 80% savings reinvested in the first year. They also offer tax-relief on premiums i.e.15% of the savings invested is tax-relieved.
They also offer capital to inject into other pillars
Our research on the best companies to invest in compares their returns, charges, minimum and maximum capital and also whether they’re quoted.
In this pillar, we have partnered with Pan Africa Life Assurance Limited and Generali.
Pan Africa Life Assurance is a subsidiary of Sanlam of South Africa whose capital is $80 million. Generali is rated by Forbes as the 34th biggest company in the world.
This pillar ensures 15-25% returns per month, for example, a premium of $360 per month ($4320 p.a) compounded at 15% for 10 years will result in $174,768.
This amount can be withdrawn any time after 3 years and reinvested in any other pillar.
As Roger Enrico, former PepsiCo CEO once said, growth entities share 5 basic qualities:
1. Leadership market positions (competitive advantage)
2. Strong, well-recognised brands
3. Good growth prospects
4. Globally diverse portfolios
5. Advantaged business systems
Ethical Unit Trusts satisfy all 5 qualities. Now, 1 out of every 9 US Dollars held by portfolio managers in the US is being invested in socially-responsible unit trusts.
Shares,stocks,bonds & forex
This range from a minimum injection of $1200 in forex trade to $150 in stocks and shares. Our returns at NSE (Nairobi Stock Exchange) are a guaranteed 5%.
Our forex returns have averaged 10% per month.
I have 3 forex accounts: 2 with Safe cap Investments, trading as finexo.com and 1 with Gain Capital trading as forex.com.
Of the 2 Safecap accounts, 1 is active while 1 is inactive & ready for use privately. Any funds deposited in it are exclusive to the investor who will have a password forwarded to them.
Both Gain Capital & Safecap are regulated by the FSA (Financial Services Authority), of UK. The accounts give access to stocks trade, commodities trade apart from the ordinary currency trade.
Gain Capital is a client of Dow Jones Newswires who provide real time news on potentially market changing events.
Commodities traded include oil, gold, silver & coffee while stocks include Deutsche Tel, Nokia, Apple, Yahoo & BHP Billiton.
Currency trade alone currently accounts for a daily volume of $4trillion.
Corporate & Treasury Bonds
Government of Kenya 30-year & 5-year Fixed Coupon Treasury Bonds whose sale deadline is 22nd March 2011.
The 30 year bonds earn an interest of 12% p.a while the 5 year bonds earn 7.636% p.a paid every 4 months .The eligibility is CDS Account holders with updated mandates. All an investor needs to do is fill up a Bond Application Form.
Non-competitive bids are pegged at a maximum of $235,300.The minimum is $590.
The withholding tax for the bonds is 10% for the 30 year bonds & 15% for the 5 year bonds.
We choose entry points for worthy projects and bid at the off-plan price e.g. $30000 for which the liquid emerging markets are willing to provide at 2% interest. At the completion stage, the project is quoted at $70600 and by then, the demand is very high. The investor is able to pay up the loan & also buy another phase in the same project. This market has already attracted the likes of Flavio Briattore who have already cashed in and are developing resorts at the coast.