Onshore / Offshore Specialist
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Onshore / Offshore Specialist |
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Portfolio Design Model International Investment Portfolio
Once a portfolio with this structure is commenced it will be apparent that within each risk category you may well have investments that fall in all categories. To demonstrate; you may have one equity that is low risk because it is basically a public utility, or a government guaranteed bank; a medium risk equity may be a major international food supplier and a high risk equity could be a start-up operation.
I observe that most advisors pay scant regard to the term of investments. This is important for a number of reasons, not the least of which is the change in circumstances when the client retires and suddenly needs income rather than just capital appreciation.
A similar situation can apply with bonds. Just compare the risk categories of a Government Bond, a multi national secured bond and a good old ‘junk’ bond.
In portfolios put together for clients by me in the past you may well see investment in property of all types, resources such as plantation forestry, mortgage secured fixed interest investments and carefully vetted start-ups in less fashionable countries provided there is an absence of political risk to the venture.
By putting together a diversified portfolio of such investments it becomes possible to obtain a higher return for clients in a reasonably secure manner.
Examples of the types of investment that may fall into the various categories follow.
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