An Investment for every risk appetite – by Jon Bennion-Pedley
We all have a different appetite for risk at different times in our lives.
I have way too much Covid19 time on my hands. I have started cooking again! And as I was sitting in lock-down in Kabale I got to thinking which of Investment Owl´s current approved investments would be my favourite for each of the three investor risk profiles. I´ve described the investor profile, the best choice at the current time, and overviewed each of them. Here you go:
Investor Profile: Only about 15% of investors are truly risk-averse. These investors won´t risk capital, and value liquidity over rate of return. They need to understand EXACTLY how the investment works
My Choice: Neutral Fuels Income Bond
Investment Overview: This is a “A-“ rated bond issued by Neutral Fuels who are an innovative and established business converting bio-waste into bio-fuel for businesses such as Del Monte, McDonald´s, Nestle and Big Bus amongst others. Their technology and business model is unique and they are operating in the “green” space. This raise is to finance expansion of a proven model. The grading of “A-“ is current from a leading independent agency. You can see more by clicking here
Minimum Investment: $50,000
Term of Investment: Technically 4 years (maturing 2024)but the bonds are tradeable and so there is pretty much immediate liquidity. We can offer a capital protection scheme if you have to come out early.
Return: 8.25% per annum paid to you quarterly
Security: Fully listed and regulated on the Frankfurt stock exchange and asset-backed to protect capital. It is bankruptcy-remote so that even if the company failed the assets belong to the investors.
Summary: Quite simply, by investing in this bond you are helping our planet through the development of net zero biofuels, fixing a USD return for the next 4 years at nearly double the rate your bank will offer you, and not risking your capital.
Investor Profile: Most investors – 75% – are balanced investors. They accept that there is some risk in most investments, they won´t risk capital, but they may be flexible about the extending their investment period to protect returns
My Choice: Halcyon Resorts 3 year loan note
Investment Overview: The opportunity to invest in the expansion of a successful holiday resort in Limoges, France. Your investment will help the developer to build more accommodation, a health spa, childrens club and a second golf course and you will be well rewarded for your involvement in this three year project. The resort is open and operated by the world´s biggest hotelier. Take a look by clicking here!
Minimum Investment: $25,000
Term of Investment: 3 years with a 2 year exit option
Return: 13% in year one, 16% in year two and 20% in year three with your interest paid every 6 months
Security: First charge over the property that is valued at more than three times the investment raise
Summary: A proven USD investment paying three times what the bank are offering. The investment has the security of a charge over the land and a guarantee from the operator who are a multi-billion dollar company
Higher Risk Investor
Investor Profile: Only about 10% of investors are really comfortable with higher risk investments
My Choice: Pharmaceutical Share Purchase
Investment Overview: This company is one of the most exciting operators in the new medical and recreational marijuana industry. They have a number of unique products that they are selling online and through retail outlets and they control the whole value chain – farming, harvesting, processing, packaging, IP and retail. We have a small number of shares priced at just £1 each – the last round of fundraising sold at more than £7 per share so these offer a very large discount. We believe that they could trade as high as £25 per share by the end of 2025 but there are, of course, no guarantees. You can learn more by clicking here – and buy products by clicking here IT may be worth checking whether or not they are legal in Uganda before you buy!!
Minimum Investment: £10,000
Term of Investment: Estimated between 2 years and 5 years
Return: Forecasted between 500% and 2500%
Summary: Over the past five years we have helped investors make returns of more than 350% in less than two years by identifying these kind of opportunities in disruptive businesses such as medical marijuana, agri-tech and pharmaceutical or medical technology. Our record is good but not perfect! This is one for those prepared to take a qualified risk for an exceptional return.
I like all three of these and I have personally invested in all of them – the lower risk because I like the business model, the balanced risk because it is a “no-brainer” and the high risk because I do like to take a researched gamble with money that I could afford to lose – though I don´t want to or expect to!
If you´d like to know more about any of them then just let me know.
Stay safe. I hope and pray that we all escape soon!!! But there is no way that my wife will let me stop cooking again…..
Written by Jon Bennion-Pedle