What is asset management in a lay term?
Asset management is the systematic approach to the governance and realization of value from the investments that a group or entity is responsible for, over their whole life cycles. It is a process of developing, operating, maintaining, upgrading, and disposing of assets in the most cost-effective manner (including all costs, risks and performance attributes).
From studying the client’s assets to planning and looking after the investments, all things are looked after by the asset managers and recommendations are provided based on the financial health of each client.
What does an asset management company do?
An asset management company is a company licensed by Securities and Exchange Commission (SEC) to perform the function of funds and portfolio management for a fee and employs experts who manage money and handle the investments of clients. They are licensed to accept funds from the investing public and invest in various asset classes like Government Treasury Bills, Government Bond, Corporate Bonds, Stocks, Equities, Commercial Papers and even Real Estates. They could also create mutual funds as a collective investment scheme.
What are Asset Classes?
An asset class is a group of securities with the same characteristics, especially with regard to risk. There are three main asset classes equities, bonds and cash. Some professionals also add real estate and other commodities like art and gold when discussing asset classes. Apart from varying levels of risk, each asset class also has a different potential for delivering returns in various market conditions.
What should I need to know about Asset Classes?
It is essential that you know the characteristics of the asset that you are investing in, so you are able to adjust your expectations accordingly. The financial landscape is always changing, so knowing about the different asset classes and how they are performing currently can help you plan how to invest your money. You have to understand the risk and rewards characteristics of any asset you want to invest in, and ensure that it is in line with your own needs to make an appropriate decision for you.
Which Asset Class should I invest in?
There is no correct answer because the best investment actually depends on your personality, preferences, and needs. The specifics of the individual investment also have a lot to do with your investment profile – so what you always need to keep in mind is your investment goals, investment horizon and risk appetite.
Nevertheless, most financial experts agree that the best investment strategy is to spread your investment across broad asset classes to reduce your risk. This is because a fall in the return of one asset class due to market conditions may not affect you as much. You can do this by investing in a mutual fund that invests in the different asset classes, but be sure to choose a fund with a mix (in terms of the ratio invested in each asset class) that is right for you.
What is Investment Advisory?
Investment Advisors explain the investment ideas of the experts to their internal or external clientele and propose adequate investment solutions. In turn, they identify needs and wishes of the clients or the Relationship Managers of their organization and transport them to the central (financial/investment) asset management unit. Hillcrest boast of a wide array of financial experts with diverse experience in investment banking and capital market. Corporates and Individual clients are availed these services to give them the premium advantage in the money market space.
In Nigeria, investment advisors are registered with the SEC.
What are Investment Risks?
The objective of investing is always to grow your capital, and get the best return you can. However, there is a very important element to consider, investment risk. Most investments carry with them the possibility (sometimes high and sometimes low) of you losing money. With equities, the value of your shares can go up or down.
So, if you invest in equities, you accept the risk that you may lose money. If you invest in bonds, you take the risk that the company may not be able to pay back your initial investment and the agreed interest as well. When you invest in real estate, you accept the risk that the value of the property could fall. If keeping your cash at the bank is your preferred option, there may be less risk of the value of your capital falling, but the interest you will get on your deposit in the bank will be immaterial compared to the value you could lose through inflation.
There is a direct opposite relationship between risk and reward. The lower the risk you accept, the lower the return you can expect to achieve. However, this does not mean that you should always go for the highest risk option. You should always go with the level of risk you are most comfortable with, keeping in mind your investment goals, how long you are prepared to wait for your investment to grow or mature, and how much of your investment you are prepared to lose.
What are securities?
Securities are investment assets acquired to improve wealth: Examples of different classes of securities are: Equity, Fixed Deposit, Bonds, Treasury Bills, Commercial Paper, Real Estate etc. Our venture in some securities are highlighted below:
Hillcrest Capital management has capabilities to execute trades on the NSE (Nigerian Stock Exchange), National Association of Securities Dealers (NASD), Unlisted securities and Financial Markets Dealers Quotations (FMDQ) Exchange markets. All these are done as best execution either as part of a portfolio or standalones.
Fixed Income & Money Market
We invest & trade in bonds, treasury bills and other fixed income securities and money market instruments for regular income, liquidity and predictable returns. We also trade Commercial Papers and other Over-the-Counter (OTC) instruments.
Foreign Transaction Deals
A foreign Transaction Deals is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control.
These deals can be made either “inorganically” by buying a company or part of its shares in the target country or “organically” by expanding the operations of an existing business in that country. We look at various forms of FDI incentives to advise you on which investment to make.
What is a portfolio?
A portfolio is a bouquet of assets crafted or designed to meet any individual investor needs. It is a basket containing different assets in different proportions designed to meet the risk appetite of the investor.
What is a bouquet?
Like the professional florist who creates a bouquet of flowers, your fund manager’s duty is to choose and create a collection of attractive investment vehicles in a portfolio of funds, which requires consistent and active management, backed by market knowledge and key research to maximizing returns for the shareholder or the investor.
What is a fund?
A fund, otherwise called mutual fund is a pool of money from different people with the same objective. It gives you access to opportunities to grow your money that you wouldn’t normally have access to if you didn’t have a lot to invest.
Your money is pooled together with that of other investors, and spread over a range of asset classes such as bonds (and money market instruments), equities and cash. The collective assets in the fund are called a portfolio, and they are managed by an experienced fund manager on your behalf. For this service, the mutual fund manager charges a small annual fee known as a management fee.
Your investment in the fund is divided into shares, and the number of shares held represent your ownership stake of the fund’s overall assets, and the return those assets generate. The prices of these shares will fluctuate daily as the underlying value of the assets rises and falls and your individual stake will rise and fall accordingly.
It is also referred to as Unit Trust which is a pool of funds from several investors who share similar investment objectives. Their contributions are invested in various financial instruments and managed by a professional Fund Manager. Each investor becomes a unit holder in the Fund, that is, a part owner of the Fund. The units held confer certain rights of ownership on the investor such as participating in the income derived from the Fund’s investments. Hillcrest Capital has made available the Money Market Fund, Balanced Funds and Real Estate Funds.
Are mutual fund a good way to invest my hard-earned money?
Mutual funds are a great way to invest:
- If you are looking to build a nest egg for the future
- If you can only invest a small amount at a time
What are the benefits?
- Lower risk because your money is spread over different companies and asset types. When the value of one asset in the fund falls, another may rise. This means your risk overall is significantly less than when you put your money in a single investment.
- Better rates because by pooling money with other investors your combined buying power is greater than if you invested on your own and you have access to some assets and markets that you would not have if you were investing smaller amounts on your own.
- Reduced costs because some costs and charges are spread across all investors in the fund. Therefore, you can carry out large transactions for much lower cost than if you were buying the assets directly.
- Saved time and effort with an experienced manager who invests on your behalf. Your money is managed by a professional with expertise and access to market and research information you may not have, who is able to monitor the investment better because it is his full-time job.
- Easy access to your money by being able to cash in your investment at any time. You can make additional contributions or withdrawals to your investment whenever you want.
- Simple to use and monitor. You can make automatic transfers to or from your bank account, and check your funds’ performance figures conveniently online. You also receive regular reports on how your money has been invested, and can choose whether you want your returns to be paid out as income or automatically reinvested.
What are Fixed Income and Money Market Investments?
Fixed income refers to any type of investment that yields a pre-determined, regular or fixed return. The variety of them is known as the Money Market Investments.
If a company wants to raise money to invest in new products, to make an acquisition, to buy equipment, it has two fundamental choices. It can either give away shareholding in return for investors funds, or it can leave its equity undiluted and promise instead to pay regular interest on money lent to it as well as return the original capital sum at the end of the loan period.
This latter method is usually called a bond as in my word is my bond. Governments can also raise money in a similar way in the form of Treasury Bills or Bonds.
Equally, a bank can offer a fixed rate of return on money you save with them (effectively you lend the bank your money.) These are all examples of fixed income investments. Those investments which are short-term i.e. 12 months or less, are called money market investments.
It is also useful to understand the terminology of fixed-term investments:
- The principal is the amount that is being lent
- The coupon is the interest rate that will be paid
- The maturity is the date by which the capital sum must be re-paid
- The issuer is the company or Government issuing the instrument
What are the different types of Fixed Income Investments available?
Fixed term securities offer different levels of return depending on the investment tenure and the degree of risk involved. The following are short-term, money market instruments which are near-liquid and considered safe but, will not yield especially high returns:
- Treasury Bills (T-Bills) are short-term debt instruments issued and guaranteed by governments in order to raise funds from the public. T-Bills are purchased at a discount and redeemed at full value at maturity. The difference between the value at maturity and the discounted price at which you purchased it – your profit as it were – is the equivalent of an interest payment.
- Fixed Deposits are investments offered by commercial banks, with a fixed maturity date and interest rate. The interest rates offered will vary by the prevailing interest rate climate, the amount of money you invest and the length of time you are prepared to have the money locked away. These fixed deposits usually attract higher interest rates than T-bills because the risk of default is higher.
- Commercial Paper (CP) is a short-term debt instrument issued by a company.
- Bankers’ Acceptance is a short-term credit investment issued by a company and guaranteed by a bank.
- Bonds, as described earlier, are debt instruments issued by governments and corporations. They have longer investment tenure and higher yields.
- Bond prices have an inverse relation to market interest rates. In other words, if general market interest rates rise, then bond prices will fall and vice versa. You need to hold bonds until maturity to avoid any possibility of capital loss because if you sell them early in unfavorable conditions of high interest rates you could lose out.
Are they for me?
Yes. A component of fixed income investments can be useful within anyone’s portfolio to balance the overall risk/ return profile. Fixed income investments generally become more relevant as your need for security increases. This often makes them more appropriate as one gets older. However, fixed return investments can be useful at any life stage depending on your goals.
How do I start Mutual Funds investing?
It is never too early to start. Investing is the smartest way to secure your financial future. The earlier you start, the more time your money has to compound and grow. This simply means that the interest from the money you have invested is put back into your investment, allowing your money to grow faster.
Also, people that start early are able to learn and make mistakes early when they have little to lose, while gaining knowledge and experience to help when they have larger sums to invest, increasing their chances of success. This does not mean, however, that it is ever too late to start investing. You can begin at any time, but the later you leave it, the more committed you have to be to catch up to achieving your goals as you have a shorter period of time to invest.
What is a bond?
When a company or a government wants to raise money from the public but prefers its equity undiluted and promise instead to pay regular interest on money lent to it as well as return the original capital sum at the end of the loan period, they issue out bonds as in my word is my bond. Governments bonds are known as Treasury Bills or Bonds.
What is an equity?
Equities (also called stocks or shares) are issued by companies and some are traded on the stock market. When you invest in an equity, you buy a share in a company, and become a shareholder. You can make money from equities in two ways: growth of your capital when the share price increases, or you can receive income in the form of dividends. Neither of these is guaranteed and there is always the risk that the share price will fall below the level at which you invested.
Also, past performance of a stock does not guarantee future performance. Equities generally are more unpredictable in the short term, but they have historically outperformed other investments.
What are Stocks and Shares?
A stock is a share in the ownership of a company. In investment, the terms stocks, shares, or equity are used interchangeably, and they mean the same thing. Investing in the shares of a company means that you become a part owner of the company and therefore share in the fortunes and misfortunes of the company. There are two main factors that can affect the share price of a company: factors relating to the business itself which may cause the share price to go up or down, and factors relating to the general economy and investors sentiments.
There are typically shareholder rights such as the right to purchase any new shares issued by the company, and the right to a relevant share of the company’s assets if it is liquidated. Shareholders rights to a company’s assets are however subordinate to the rights of a company’s creditors.
Shares also carry the right to have a share of the profits of the company in the form of a dividend. However, companies are not obliged to pay dividends (except to holders of so-called preferred stock or preference shares) and in tough years they will often decide not to pay a dividend. In this case the only benefit from the shares comes from growth in their capital value.
What are the benefits of investing in stocks and shares?
- Shares have historically out-performed other investments such as bonds, money market investments or straightforward savings accounts. Only property can match or exceed them in a strong property market.
- If you are prepared to hold shares for a long while, for example five years, you should benefit from their potential to generate capital growth.
- Shares are a good hedge against the eroding effects of inflation and for this reason are suitable for achieving long term investment goals such as retirement.
- You can also derive both incomes in the form of dividends and capital growth, although, as explained above, this may not always be the case.
What different types of Stocks and Shares are available?
There are different types of Shares such as Ordinary Shares or Common Stock, and Preference Shares.
Some companies that are mature and offering a known, stable, in-demand service or utility are relatively stable safe bets. They may not bring you the highest returns but they will be relatively secure (less volatile). Other early-stage, entrepreneurial companies in high-growth areas like, say, mobile telephony may be riskier but potentially give higher returns if they do well.
What is more important in this section however is the selection of shares in different types of companies, in different sectors.
Should I invest in them?
Shares are among the best long-term investments. The stock market offers a reliable method of building wealth for long-term. This means that investing in shares should be part of your overall financial plan, especially where you have medium to long term investment horizon.
Many people, including those with quite modest wealth, either own shares directly or have assets such as pensions partly invested in equities.
What is Real Estate?
Real estate can be land or property. You can invest in real estate to live in or for investment purposes — apartments, rental houses, office buildings and malls all generate income through rents. Values tend to rise and fall more slowly than stock and bond prices. Real estate helps to protect against inflation as property values and rental income typically rise faster than inflation, but is subject to a number of risks including liquidity and marketability.
What is Property Investment?
Land, and the buildings placed on it, has many uses and therefore many aspects to their value.
Land usage becomes valuable for factories, warehouses, offices, infrastructure projects, retailing and urban residential development. Finally, land can gain value for agricultural, tourism and leisure purposes.
What different types of Property Investment are available?
You can either invest in residential or commercial property directly, using your own judgement and finances plus mortgages, or you can invest indirectly.
Indirect investment in property can be done via a pooled or collective investment scheme such as a mutual fund, real estate investment trust or property (asset) backed investment securities.
Pooling funds with other investors in either managed funds with a property focus or listed real estate trusts, has the advantage of exposing you to a broader range of property such as commercial, industrial, retail and residential. Pooled funds also only require a modest amount when compared to direct investments in property.
What are its benefits?
- Investing in property, whether commercial or residential, can be a dependable source of income both from rent and capital growth from the property’s underlying increase in value.
- As the Nigerian economy grows, agricultural schemes modernize, mining and industry develop; the value of commercial land and buildings will increase.
- Equally as personal wealth increases, leading to a re-emergence of the Nigerian middle class; upswing in rural-urban migration continues and mortgages become more understood and available, the prices of residential property will also rise.
- Not to be underestimated is also the emotional reward and sense of stability that comes from owning property. It provides security and an asset to pass on to loved ones.
- Property investments are especially attractive if one can obtain a mortgage at a relatively good rate. This is because a mortgage enables you to buy and enjoy the lifestyle and investment benefits of a property well before you are able to buy it outright.
Is it for me?
Yes. You don’t have to be enormously wealthy or a property speculator to benefit from investment in land and buildings. Property investment, particularly with the growth in mortgages, should be viewed as an essential part of a balanced portfolio of investments.
You also need to be aware that investment in property is not a liquid form of investment. There may be times when finding the right buyer for your property is difficult and you may be forced to sell below market price if you need to sell quickly. However, you can take advantage of the opportunities in the property market without participating directly by investing in a property fund which employs the relevant expertise needed to get it right.
How do I start?
Hillcrest has a property investment vehicle – through which you can benefit in the performance of a basket of commercial and residential real estate investments.
You can also invest directly in other real estate opportunities available through Hillcrest. For more information on how to invest as well as other real estate opportunities available in Hillcrest, contact a Hillcrest Wealth Advisor.
What is Private Wealth Management?
Private Wealth Management is also known as Estate Planning refers not to real estate, but to the whole basket of financial assets an individual acquires during a lifetime and is the entire process of accumulating and preserving those assets and then transferring them to a spouse, ex-spouses or children or other beneficiaries.
The product is tailor-made customized to suit the needs of the Investor. It is mainly for ultra-high net-worth clients who have a wide array of financial goals. They leverage on our expertise, robust research of the market and niche to create a bespoke portfolio crafted only to suit their financial goals.
What are its benefits?
- The principal benefit of good Private Wealth Management is to make sure that the maximum possible proportion of your estate is passed on to your beneficiaries – those who inherit from you – by minimizing both taxes and the involvement of probate courts.
- Good Estate Planning also ensures that you designate guardians for minor children and plan for disability or incapacity to work.
- Wealth management also avail the investor the opportunity to pass on the management/ servicing of periodic obligations through returns from the portfolio to Hillcrest.
What different types of Private Wealth Management are available?
The various Private Wealth Management tools include:
- Holding Companies
- Various forms of property ownership
- Powers of attorney
Two of the tools listed above are discussed in further detail below. It should be noted that typically Estate Planning often hinges on Trusts.
What is a Trust?
Trust is an arrangement whereby assets of the person who owns them are managed by other person/persons or organization for the benefit of a recipient. A Trust is created by a Settlor who entrusts some or all of his assets to a person/people of his choice called Trustees. The Trustees hold and manage the property for the benefit of one or more individuals (or organizations) specified by the Settlor who are known as the Beneficiaries. The Settlor can also be a beneficiary of a trust.
Summarily, Settlors give or transfer assets; Trustees manage and maximize those assets and Beneficiaries receive benefit from those assets.
The Trustees owe a financial and moral responsibility to the Beneficiaries and can indeed be held personally liable for any shortcomings in the Trust. The relationship between the Trustee and the Settlor/Beneficiary is a fiduciary one i.e. the trustees owe a duty of care to the Settlor/beneficiaries. The Trust and Trustees are governed by the terms of the trust document, written as a legal deed by a lawyer on behalf of, and in consultation with, the Settlor.
What are the benefits of trusts?
- Confidentiality; the trust assets are held in the name of the trustees. Therefore, the identities of the Settlor and beneficiaries are not public information.
- Trusts protect personal assets against litigation, unfavorable government policies or those who might squander those assets.
- It ensures the smooth transfer of assets from one generation to the next.
- It minimizes taxation when you have investments in more than one tax jurisdiction.
What is a Holding Company?
A Holding Company is a company registered for the purpose of holding all of your assets such as real estate, shares and fixed income securities.
What are the benefits of a Holding Company?
- By holding all your assets in a single Holding company, you can simplify your Estate Planning. This structure allows you to transfer all of your assets, by transferring the shares of the Holding Company, to your beneficiaries rather than having to transfer them individually.
- A Holding Company enables you transfer your assets while still alive without going through probate. However, this route should not be taken without understanding the tax implications of owning a company.
Is Private Wealth Management for me?
Anyone and everyone can benefit from proper Private Wealth Management. It is especially important for those that have children and for those that are at a mature phase of life.
What is Retirement Planning?
Retirement can be one of the happiest periods of our lives if we plan for it properly. Yet this dream can prove elusive if we don’t plan properly. Far too many people end up living off meager resources in retirement, trapped in the tension between finally having enough time and not having enough resources.
What are the benefits of Retirement Planning?
The earlier you plan for retirement, the more time your investments have to grow and out-pace inflation, thereby increasing your buying power and wealth in the future. Inflation is the enemy of happy retirement and many people turn away from facing up to its withering effects. Unless you are really mathematically pin-sharp, you will almost certainly underestimate its effect.
For example, 20 years of 15% inflation per annum increases the cost of everything 16 times! What costs 1,000 today could easily cost you approximately 16,000 in retirement. Suddenly that cozy little nest egg doesn’t look so ample!
The good news is that the longer you invest for your retirement the more compound growth increases the value of your money. Put simply, if you invest 1,000 for a year and earn 10% interest you turn it into 1,100. The next year your 10% interest earns more because it’s now 10% of 1,100 not 1,000. This “snowballing” effect gets bigger and better as time marches on.
What are the key aspects of Retirement Planning?
- You need to work out at what age you are planning to retire.
- You then need to work out how much your household expenditure will be in retirement as a percentage of your current household expenditure such as household bills, travel and medical care. Bear in mind that you will have less expenditure because your children will be independent and you may have paid off your loans such as mortgage etc.
- You also then work out your likely income in retirement from your Retirement Savings Account (RSA) or Employer / Employee Savings/Pension scheme or other investments and assets.
- You must then determine the effect of inflation on household costs to get a true picture of those costs at retirement age.
- You compare those future costs with the likely returns on your assets before retirement and after retirement. The latter may be lower because when you retire you tend not to have investments that have high risk (and hence, high return).
- You can then work out a target for the savings and investments required to meet your needs; determine what the shortfall is (after factoring in expected retirement benefits); and, work out an investment plan to meet the shortfall.
Is it for me?
The temptation is to think that Retirement Planning is for people who are middle-aged or over 40 years. This assumption is wrong. If you start thinking about your retirement from the age of, say, 25, perhaps even before you marry or have children, the better your retirement will be.
However, if you are starting later, you can still benefit from retirement planning, although the benefits are immense when you start early.
How do I start?
We have devised a Retirement Calculator that you can use right now to plan your retirement.
You can also contact a Hillcrest Wealth or Pension Advisor to work with you to develop a plan of action.
What is Private Equity?
Private Equity is medium to long term finance, provided in return for an equity stake in potentially high growth companies that are not publicly traded either on a stock exchange or via other means.
Private Equity firms and funds are essentially investment companies that provide committed share capital to help these unquoted companies grow and succeed. Private Equity was established with the advent of Venture Capital firms during the 1960s and 1970s, focused on starting and expanding companies, often technology companies, and this gave rise to such famous Silicon Valley successes as IBM and of most recent are Flutterwave, Paylater, Andela, Uber, etc.
They are often looking for businesses that have proven potential for realistic growth in an expanding market, backed by a well-researched and documented business plan and an experienced management team with a good track record. This is what you should also do when investing in a private equity firm or fund.
What are its benefits?
Successful Private Equity backed companies have grown faster than other types of companies. The provision of capital, plus the experienced personal input from private equity firms or funds, sets it apart from other forms of finance. That is the benefit to the companies in whom private equity is invested. It also allows you to diversify and help manage the risk profile of your portfolio. It gives you exposure to growth markets.
The benefit to you as an investor is that Private Equity investments, when they succeed, can give much higher returns than public stock or bond investments and should be seen as a complementary, alternative investment. They also enjoy certain tax advantages.
Finally, Private Equity provides entrepreneurs with an opportunity for long-term finance and thereby supports job creation and broad-based economic development.
What different types of Private Equity are available?
There are basically three different types of Private Equity.
- Venture Capital: equity investments made typically in less mature companies, for the launch, early development or expansion of a business. Investments can help start-up or young businesses develop their products and services in order to generate future revenues. Later stage or Growth Venture Capital can fund the expansion of more mature businesses which are generating revenues but may not yet be profitable, or generating enough cash flow, to fund future growth.
- Buyout and Acquisition financing: the acquisition of a significant stake or majority control in a mature company from the current shareholders.
- Expansion capital: negotiated Private Equity investment in the unregistered securities of either privately or publicly held, mature companies. These companies are typically looking for capital to expand or restructure operations, enter into new markets or make an acquisition.
Is it for me?
Private Equity fund investment is for those who can afford to have their capital locked in for long periods of time and who are able to risk losing significant amounts of money. Funds are usually locked in for five years, often for longer, and so this is not an investment for those who want liquidity in the short to medium term.
Whereas lenders have a legal right to interest on a loan or repayment of the capital, equity is invested purely in exchange for a stake in the company and therefore returns are tied to the fortunes of the company. However, if you want to invest in entrepreneurs, thereby being an entrepreneur yourself, this is your financial vehicle.
How can I start investing?
An investor can begin by filling our contact- us form on our website hillcrestcapmgt.com and completing an account opening form after a discussion with our Wealth Advisors and making payment into the designated bank account via convenient channels such as Cheque, Debit/Credit card, Quick teller, bank deposit, bank transfers, Direct Debits, and Mobile money.
Account opening forms are available at hillcrestcapmgt.com or our Head Office. Completed forms and payment instruments or evidence of online payment are required to be sent by mail to email@example.com or to our Head Office.
How much do I need to start investing?
Contact Hillcrest Wealth Advisor to discuss the options available and determine your investment-fit.
Who can invest in the Hillcrest Capital Management Ltd?
Everyone can, regardless of sex, age or nationality, or religion.
How can I subscribe as a foreign investor?
The Fund assets are denominated in Naira and, as such, capital inflows by foreign investors who subscribe to the Fund shall be converted to Naira at the exchange rate as advised by the Fund Manager’s Bankers. Certificates of Capital Importation (CCI) shall be issued by the Fund Manager’s Bankers for foreign investor or by the Custodian to the Fund if the procurement of foreign investor so wishes. This certificate is necessary for procurement of foreign exchange at the official market for repatriation of dividends paid by the Fund and repatriation of proceeds from the redemption of Units. The bank transfer details for the Fund are indicated on the subscription form.
What tips do Hillcrest Capital provide?
- You need a good advisor, especially when you are new to investing.
- You need to work out your needs from investing – perhaps specific life events which you need to fund – your time-frame, and your risk-return profile.
- It is often important to diversify your investment in shares to spread risk and maximize the chance of getting high returns.
- It is important to have a long-term horizon when investing.
- You can study investment portfolios yourself to gain some investor insights. You need to look at the track record in profits and revenue growth; their cash flow; how competitive their products and services are and how easily they might be copied or bettered; their investment in Research and Development as a percentage of their turnover. However, the movement in prices of shares is not entirely logical and therefore not predictable. There is sometimes an amount of speculation and emotion. Investing requires the insight of an expert. Therefore, we recommend that you speak with one of our advisors who will recommend the most suitable way of investing in shares.