Current Investment Strategies
Our investment strategies currently include Exclusive Investment Bond (EIB) – Low Cost Index Funds, Fixed Income Bonds are mechanisms for better Fund Management.
- For lump sum investments, we are currently recommending an Exclusive Investment Bond (EIB) . This investment vehicle is highly tax efficient. Minimum Investment is $30,000 which can include transfers from existing savings plans and other investment vehicles.
- The charging structure for the EIB is very competitive and transparent. There are no upfront charges only management fees.
- The EIB has a cash account from which you can self-invest in to a broad range of investments including illiquid funds.
- In addition to preferring passively managed and therefore low cost Index Funds, we are currently recommending a Bond Ladder. This is a portfolio of fixed-income securities where each security has a different maturity date. The funds are then re-invested for another short-medium term creating a compound effect with predictable returns uncorrelated with the Equity Markets.
- These Bonds only last until the individual issue is fully subscribed, normally just a few weeks, so it is useful to have the funds available in the cash account to take advantage of new offerings. The returns tend to vary between 10%-13% p.a. over periods of 1-5 years.
- Recent examples that we have recommended provide gross annual fixed returns of 11.5% for 2 years, 12% for 5 years and 13% for 2 years respectively. Access fees are normally either nil or no more than 3%, and usually carry no management charges. These are all high returns with the quid pro quo that they are all illiquid so no redemption is possible during the term.
- Most of these investments are available direct but with minimum individual investments of $200,000. This is the reason why we recommend the EIB which allows access to these attractive investments for as little as $10,000.
- This approach provides our clients’ tax efficient access to a range of investments that are not available for smaller sums and has the benefit of investment diversification. We actively manage these investments for the client who can login and view their account statement at any time.
- We undertake considerable and strict due diligence prior to recommending any individual investments. This includes interviewing fund managers, meeting their lawyers and trust companies.
- We do not charge fees. We are paid by the investment provider(s). All charges, terms and conditions are transparent and disclosed at outset.