Bullion Capital - Creating Wealth ....

Investment Planning

Wealth management involves capital preservation and appreciation. Our advice on these will depend on what you want to achieve and the available assets. The types of investments that we can offer you in order of increasing risk are as follows;

Bank deposits and money market funds
Guaranteed funds
Offshore managed funds
Alternative investment strategies

The recommendation we shall make will be tailor made to suit your specific needs. We shall however keep track of the investment by doing regular updates so that we can help you achieve your objectives and correct any deviation that may arise.

To say the least, the world of investment is a huge arena that can seem opaque and perplexing to many of us. You do not however have to be a financial expert to understand the important elements of investing- most of it makes good common sense. Neither do you have to be an 'insider' or investment professional to make money from your investments. This section is designed to be a basic guide to the science, art, or discipline (depending on how you look at it) of investing, in every day terms. If you read and understand the following, and have access to competent advice from a professional Investment Adviser, then you are fully capable and ready to invest.

TYPES OF INVESTMENT - or ASSET CLASSES

You can make your investments as simple or complex as you want them to be, but there are relatively few types of investment classes.

EQUITY

We put equity first because, in practice, it is the most important asset class for many long-term private investors. Equity investment is also called stocks and shares. I like the term equity because it means what it says- ownership. If you buy shares in IBM, for example, you are a part owner (Shareholder) of IBM. Over the years, no other asset class has produced the returns generated by equities. You can buy shares in an individual company, usually through a Stockbroker. Or you can buy a Collective, or Managed Investment. There are several names by which Collective Investment Schemes are known- such as Unit Trusts, Mutual Funds etc.

BONDS

Bonds means debt. A Bond is simply a promise that the Bondholder is owed a certain amount, repayable at a certain time. As you would expect, the Borrower, usually a Corporation or Government body pays interest. Interest rates payable are determined by several factors:

1. The inflationary environment. The higher the inflation rate or the outlook for inflation, the more interest a Lender will expect to receive for the loss in value of his money due to inflation.
2. Credit quality. Obviously, the more secure the borrower the lower the interest rate the lender will expect. Higher risk Bonds are known as High Yield, or simply Junk Bonds.
3. Time. Long term Bonds generally pay more interest than shorter term Bonds, because of the increased time before the Lender gets his money back.
4. Government Policy. The great spanner in the works! Governments manipulate interest rates via Monetary Policy.

To most private investors, Bonds are seen as a lower risk, less volatile alternative to equity. It is important to bear in mind also that Bonds can go down in price- for example Bonds lose value in a time of increasing interest rates. In general, Bonds can be seen as a viable alternative to equity and an attractive asset to mix with equities within a portfolio.

PROPERTY

As an investment vehicle, property is unusual in that most people invest in property directly, rather than via securities. For many people their primary property investment is their own home. It is quite possible to invest in property via a Collective Investment vehicle, listed and unlisted Property trusts in the UK, Australia Property and Global Property funds can be an attractive investment option. For example, during inflationary periods, property tends to perform better than equities. The rental yield from a property portfolio can also be a useful source of income for retirement purposes.

ALTERNATIVE INVESTMENT STRATEGIES (or AIS)

Previously, these had been the domain of Institutional investors such as pension funds, or high net worth investors. Another word commonly used for AIS is Non-Correlated Investments, which also describes a significant portion of their appeal. Non-correlated Investments are simply different investments whose fluctuations in price are not correlated, or related to each other in any way. In this context, the term is used to describe Investments whose return over a period of time is essentially random compared to equity markets- a non-correlated strategy is as likely to go up or down when the stock market is weak. The effect of combining a percentage of AIS with a traditional equity portfolio is to reduce the potential volatility, or risk of the portfolio. Several AIS investment vehicles have shown attractive historical returns, even when compared to equities.
It is not possible in this space to provide a comprehensive overview, but typical AIS include:

1. Managed Futures funds. Often combined with a capital guaranty, managed futures funds are essentially proprietary trading systems managed by Commodity trading Advisors. Some managed futures funds are highly conservative, some aggressive.
2. Hedge Funds. Simply, a Hedge fund is an investment vehicle allowed to invest in a variety of different assets and strategies to derive its return. Many Hedge funds are in fact quite conservative investment vehicles, in contrast to some of the publicity of the last few years.
3. Market Neutral strategies. Market neutral strategies derive their return from the Stock market, but are non-directional, i.e. the return does not depend on the direction of the stock market index. Several Market Neutral funds have shown attractive returns in diverse market conditions.

The private investor, with the availability of AIS vehicles, now has the opportunity to manage a portfolio on similar principles to large institutions.

CASH OR CASH EQUIVALENTS

From a long term investment perspective, the main use of cash is as a defensive measure, if other investment opportunities do not look attractive, or as a flexibility measure, if liquidity is useful to take advantage of pending investment opportunities or general purchases in the near future.

DERIVATIVES

Derivatives are financial instruments. There are basically only two kinds. An Option is the right, or option, to buy (a call option) or sell (a put option) a stated quantity of a good at an agreed price, at or by an agreed time. A Futures Contract is similar, except it is an obligation to buy or sell that good. Derivatives markets, except for managed futures or options funds, do not belong under the umbrella of long-term investment. Private investors who play these markets are often speculating, or gambling.

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Bullion Capital ... "...will seek the best mid to long term returns in the market place and at the same time help you create wealth by consolidating your gains..." Our Services Financial Planning Structured Financing Research It is a fact that over the long term equity funds will out perform all other asset types, if this is your cup of tea or maybe the emerging markets funds, bond funds, property funds or even hedge funds ,your professional advisor will note your instructions and thereafter our technical team will place you in funds co- relating to your risk profile.


				Investment Planning Wealth management involves capital preservation and appreciation. Our advice on these will depend on what you want to achieve and the available assets. The types of investments that we can offer you in order of increasing risk are as follows; Bank deposits and money market funds Guaranteed funds Offshore managed funds Alternative investment strategies The recommendation we shall make will be tailor made to suit your specific needs. We shall however keep track of the investment by doing regular updates so that we can help you achieve your objectives and correct any deviation that may arise. To say the least, the world of investment is a huge arena that can seem opaque and perplexing to many of us. You do not however have to be a financial expert to understand the important elements of investing- most of it makes good common sense. Neither do you have to be an 'insider' or investment professional to make money from your investments. This section is designed to be a basic guide to the science, art, or discipline (depending on how you look at it) of investing, in every day terms. If you read and understand the following, and have access to competent advice from a professional Investment Adviser, then you are fully capable and ready to invest. TYPES OF INVESTMENT - or ASSET CLASSES You can make your investments as simple or complex as you want them to be, but there are relatively few types of investment classes. EQUITY We put equity first because, in practice, it is the most important asset class for many long-term private investors. Equity investment is also called stocks and shares. I like the term equity because it means what it says- ownership. If you buy shares in IBM, for example, you are a part owner (Shareholder) of IBM. Over the years, no other asset class has produced the returns generated by equities. You can buy shares in an individual company, usually through a Stockbroker. Or you can buy a Collective, or Managed Investment. There are several names by which Collective Investment Schemes are known- such as Unit Trusts, Mutual Funds etc. BONDS Bonds means debt. A Bond is simply a promise that the Bondholder is owed a certain amount, repayable at a certain time. As you would expect, the Borrower, usually a Corporation or Government body pays interest. Interest rates payable are determined by several factors: 1. The inflationary environment. The higher the inflation rate or the outlook for inflation, the more interest a Lender will expect to receive for the loss in value of his money due to inflation. 2. Credit quality. Obviously, the more secure the borrower the lower the interest rate the lender will expect. Higher risk Bonds are known as High Yield, or simply Junk Bonds. 3. Time. Long term Bonds generally pay more interest than shorter term Bonds, because of the increased time before the Lender gets his money back. 4. Government Policy. The great spanner in the works! Governments manipulate interest rates via Monetary Policy. To most private investors, Bonds are seen as a lower risk, less volatile alternative to equity. It is important to bear in mind also that Bonds can go down in price- for example Bonds lose value in a time of increasing interest rates. In general, Bonds can be seen as a viable alternative to equity and an attractive asset to mix with equities within a portfolio. PROPERTY As an investment vehicle, property is unusual in that most people invest in property directly, rather than via securities. For many people their primary property investment is their own home. It is quite possible to invest in property via a Collective Investment vehicle, listed and unlisted Property trusts in the UK, Australia Property and Global Property funds can be an attractive investment option. For example, during inflationary periods, property tends to perform better than equities. The rental yield from a property portfolio can also be a useful source of income for retirement purposes. ALTERNATIVE INVESTMENT STRATEGIES (or AIS) Previously, these had been the domain of Institutional investors such as pension funds, or high net worth investors. Another word commonly used for AIS is Non-Correlated Investments, which also describes a significant portion of their appeal. Non-correlated Investments are simply different investments whose fluctuations in price are not correlated, or related to each other in any way. In this context, the term is used to describe Investments whose return over a period of time is essentially random compared to equity markets- a non-correlated strategy is as likely to go up or down when the stock market is weak. The effect of combining a percentage of AIS with a traditional equity portfolio is to reduce the potential volatility, or risk of the portfolio. Several AIS investment vehicles have shown attractive historical returns, even when compared to equities. It is not possible in this space to provide a comprehensive overview, but typical AIS include: 1. Managed Futures funds. Often combined with a capital guaranty, managed futures funds are essentially proprietary trading systems managed by Commodity trading Advisors. Some managed futures funds are highly conservative, some aggressive. 2. Hedge Funds. Simply, a Hedge fund is an investment vehicle allowed to invest in a variety of different assets and strategies to derive its return. Many Hedge funds are in fact quite conservative investment vehicles, in contrast to some of the publicity of the last few years. 3. Market Neutral strategies. Market neutral strategies derive their return from the Stock market, but are non-directional, i.e. the return does not depend on the direction of the stock market index. Several Market Neutral funds have shown attractive returns in diverse market conditions. The private investor, with the availability of AIS vehicles, now has the opportunity to manage a portfolio on similar principles to large institutions. CASH OR CASH EQUIVALENTS From a long term investment perspective, the main use of cash is as a defensive measure, if other investment opportunities do not look attractive, or as a flexibility measure, if liquidity is useful to take advantage of pending investment opportunities or general purchases in the near future. DERIVATIVES Derivatives are financial instruments. There are basically only two kinds. An Option is the right, or option, to buy (a call option) or sell (a put option) a stated quantity of a good at an agreed price, at or by an agreed time. A Futures Contract is similar, except it is an obligation to buy or sell that good. Derivatives markets, except for managed futures or options funds, do not belong under the umbrella of long-term investment. Private investors who play these markets are often speculating, or gambling. Contact us for more information ... \| Financial Planning \| Structured Financing \| Research \|