Hi all I have valued the advice from you all from time to time. My mom has some money overseas and my financial asdvisor recommends unit trusts. Are there any other alternatives I should investigate? She is retired and is very risk averse. She will propobably need to draw some of the income from time to time. Many thanks in anticipation.
I would also say unit trusts... there needs to be a truck load of money if you want to build a diverse conservative share portfolio. I very rarely reccomend unit trusts when investing, with offshore being one of those rare instances especially when someone is sitting in cash earning basically 0% interest.
Not a problem. The company I work for has a Guernsey regulated international fund of funds, pretty conservative just looking to give conservative investors sitting in cash an alternative strategy and obviously a better return than cash (not that that is very difficult). If you like I can emial you some info on this fund not just in terms of that fund in particular but also to see what underlying funds are used and maybe research more into those funds rather than being in a fund of funds...
jo soap -> sorry, i was quite busy in the week and didnt have much time to read some posts on the forum, i missed your question. I invest offshore (USA), I have some shares in JPMorgan, Citigroup and a few others, but this isnt designed for income generating but rather was started when i saw some good opportunities in the US banking sector last year after the biggest falls were over. I have an account at TD Ameritrade that is really nice online platform where one can buy CD's, Bonds, Equities, etc. and really would recommend them to anyone, but if you are looking for income investments and a very solid portfolio one would have to select certain shares oneself - there is some regulatory issues one needs to overcome before getting the cash into such an account, this is basically at SARS. Offshore unit trusts would be easier and simpler to arrange and if one doesnt know the international market a managed fund like this could be a safer bet, so this depends on how much time one is wiling to spend on the portfolio management side of things. There are really awesome companies in USA that provide solid dividend incomes such as AT&T, Consolidated Edison (electricity distributor) and some others which if one builds a income portfolio could result in some good solid/stable income - but remember these would be taxed in SA.
If your moms money is already offshore it could be easier to start such a TDA account. But you guys will have to consider the risk you want to take etc - Gash's unit trust comments make 100% sense and should be considered!
Thanks Werner and Gash. Please email details of the fund Gash. Will get my financial advisor to have a look. Address is [email protected] I think the unit trusts are going to be the best bet. None of us off-spring have got the time (or experience) to manage this investment. I am still trying to get to grips with my own (small) SA portfolio.... would also hate to make a mess with someone else's money! Thanks again
Thanks John. We had the money invested in a few indices via Barclays. I think the indices where FTSE, S&P 500, Dow Jones and Nikkei. With these Barclays products the capital is guaranteed but the return is also capped (at about 22% I think)...it didn't do well because of the timing.. invested in 2007 and matured in May 2009. How would we go about investing the indexes directly ourselves?(Obviously if we did this then the guarantee on the Captial would not apply but then neither would the cap on the return). Or do you think another of these types of products through Barclays is a good idea?
Of course you do all realise that you are all breaching the law ( FAIS ACT)by having this discussion and dispensing advice - and those of you who know this will know that the onus is on you to disprove that contention...? This is akin to asking folk around the barbeque for their advice. NOW Here is some good advice. 1. there are a number of quality houses who offer downside protection on diversifed portfolios ORBIS for example. 2. For goodness sake get your mother to talk to a qualified adviser who specialises in offshore investments AND MOST IMPORTANTLY ( repeat most importantly ) don't deal with an adviser who is commisions remunerated. Deal with someone who charges for their advice!!!! The great danger is that the commision agents will take a portion of the ongoing asset manager's fees - usually 50 basis points AND ITS 50 BP's on the ASSET VALUE - which is a shedload of money in a lower return environment. There is no incentive for the recipient to see you - he /she just waits for the money to roll in. 3. Get a CFP to advise you and they are all on the FPI SITE. no charge.
I agree, you should get a proper advisor that can help identify the risk profile and structures ones portfolio likewise - dont just take advice from us online here... we only give stories on our experiences but this is not good to base investments on without thorough research and analysis.