Private clients - Investments for the crisis time.
The financial crisisimposes the high net-worth investor to manage its assets in a different way as it has impacted or destroyed many traditional assets. First of all, the best is to diversify the assets with low correlated funds. Second, the investor should use private wealth management services to build up and watch financial assets on a day-to-day basis. Benchmarks were up since several months but the crisis happens again in the Euro zone and the markets are still volatile. The behavior of the markets shows that the financial crisis is not over that the investors should modified their behavior and asset selection methods.
Selection
of low correlated funds, pdf 600 k
1 - Fund with guarantee of
capital: large European investment
company; Notes over a 5-year period; low correlation with
financial markets; "Aaa" rating (Moody's). A 50%
bonus could be paid at the end of each period, according to the
fund performances. Average annualized yield: 12%. Permanent
liquidity. Minimum investement: EUR250,000.
3 - Alternative fund of funds: large European investment company; positive yield over the last 12 year (Date of inception); low correlation with financial markets; "AAA" rating (S&P). Average annualized yield: 9.5%. Monthly liquidity. Minimum investment: EUR15,000.
4 - Alternative fund of funds: launched in 1996; large international bank; low correlation with the stock and bond market; good risk management with large diversification and capital preservation; several awards since 2008; average annual return 10.5%; daily liquidity; minimum investment EUR15,000.
5 - Alternative fund: investment in the physical storage of precious metals in a large European bank to produce a hedging against markets ups and downs; average annual yield 9%; minimum investment EUR15,000.
6 - Alternative fund: investment in artwork such as paintings and sculptures, Post-War period, with a strategy of diversification from the financial markets; "Buy and Hold" strategy; average yield 7.6%; minimum investment EUR15,000.
7 - Alternative fund: investments in famous European wines, especially Burgundy and Claret from the best wineyards and vintages, to diversify the assets and get a no-correlation to the markets; average yield 15.; minimum investment EUR15,000.
The purchase of these funds provides a good base with low risk in all market conditions associated with steady performances over the medium-long term. The funds could be subscribed in a private bank in Geneva, at private name, or with an offshore structure like a Seychelles company, or a trust like Mauritius, or a Jersey foundation, from an investment of EUR50,000. For the investor with a minimum of EUR250,000 of assets, international tax optimization is performed with a EU life insurance contract that protects the assets and allows tax reliefs.