Protect your wealth Malaysians

Malaysians,

There are a few ways to protect your wealth now. One is to hold a capital guaranteed fund in your portfolio, and another is to buy undervalued hard assets. I am afraid that holding the Ringgit is not one of the ways to protect your wealth at the moment.

I offer you a few examples of how you can start protecting your wealth today.

1. The first attachment is MAN OM-IP AHL 2010. Athena Guaranteed Futures Limited, Man Investments’ longest running capital guaranteed fund accessing the AHL Diversified Program, has generated a compound annual return of 15.4% p.a. since its inception in December 1990.

The capital guarantee is by ANZ and guarantees on maturity the initial investment of A$1.00 per share, and there is also a rising guarantee that locks in 50% of any net new trading profits for a financial year.*

Offer period is from 15 June 2010 – 13 August 2010.

Maturity 30 September 2020.

The largest and most recent drawdown in the Australian stock market (as represented by the S&P/ASX 300 (Accum.) Index) since December 1990 occurred between 1 November 2007 and 28 February 2009, when the Australian stock market had a drawdown of -47.6%. During this time, Athena Guaranteed Futures Limited recorded a positive return of 18.9%^.

*(The amount of the Capital Guarantee at the Maturity Date is unlikely to have the same real value as A$1.00 today, due to the likely effect of inflation and the time value of money.)

(subject to the terms of the ANZ Guarantee as described in Section 5 and set out in Appendix A of the Prospectus).

^ Past performance is not a reliable indicator of future performance. Performance figures are calculated as at 31 March 2010.

2. The second attachment is for the Garratt Residential Property Fund , an open-ended SICAV SIF domiciled and regulated in Luxembourg. This fund will purchase distressed UK properties at 15%-20% discount to current values. This properties must have an average rental stream targeted at 6%p.a. The fund has a lifespan of 5 years when it will be liquidated. Anticipated investment returns of 80% to 100% (35% to 40% even if the housing market in UK remains flat).

3. Gold and Gold mining shares have represented 20% to 30% of global assets until 1981. With Gold once again taking up the role as the reserve currency of choice as evidenced by Central Banks once again purchasing Gold, as well as using their Gold reserves as collateral for credit ( Portugal recently placed their 382 tons of Gold reserves as collateral through intermediaries), there is tremendous upside for Gold Mining shares, Silver and pretty much all metals that have lagged Gold’s rise. Current valuations puts these assets at only 0.8% of global assets. A rise from 0.8% to the average of 25% of global assets is an increase of 31x current valuations. BGF World Gold fund (ISIN LU0171305526 ) has averaged 22.45% p.a since its launch 30/12/1994, and returned 41.41% the past 1 year.

Another example, Seabridge Gold Inc, (CODE : SA / ISIN : CA8119161054) has an in situ metal reserve value of USD$174,482,633,969, and a market cap of 0.66% of this reserves at USD$1,151,194,000. The market capitalisation is 1/152 of their underground assets. As prices continue to rise, their shares become even more undervalued with each passing day.

4. European REITS are now priced at an average of 12% below the current market price of their assets, in some cases up to 42% below current market valuations. With a steady rental income of 8% p.a expected for the next 10 years, they are a good way to hold wealth in undervalued hard assets.

Asia Pacific REITS are not as cheap but are expected to give a 10 year annualised R-O-R of 12% p.a.

( Source RREEF)

RREEF is the brand name of the real estate, infrastructure and private equity division for the asset management activities of Deutsche Bank AG.

Feel free to share this information with others. Contact me if you need further information on the solutions above, which are just a few out of many solutions you can have today.

Have a great day.

Jeevindra Kumar Krishnan
Consultant
Greenwood Private Wealth Management LtdSuite E-12-05
Plaza Mont Kiara
2 Jalan Kiara
50480 Kuala Lumpur
Malaysiajeevindra.kumar at greenwoodpwm dot com
Web http://www.greenwoodpwm.com

Greenwood Private Wealth Management Ltd is regulated by the Labuan Financial Services Authority (LFSA) license number BS200756

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