Investments – an alternative to low rates and high charges from the banks
I make no secret of my disdain for the retail banks. They offer very restricted investment types, pay low rates, make high charges, and generally employ people with all of the dedication, expertise, knowledge and life experience of a particularly uninspiring amphibian. At the frog spawn stage of their development. In my opinion.
It simply makes no sense at all to invest anything other than any cash that you need to be immediately available with a bank. Particularly not in Uganda where your deposits are only secured to a maximum of the first $2,700 or 10m UGX. And in the economic fallout from the pandemic with banks like Standard Chartered closing three prestige centres expect to see at least one banking casualty (definitely NOT SC!). I personally have a bad feeling about ABSA Uganda but that is personal and should not be construed as either advice or condemnation. They have a new CEO and she may be able to turn ABSA around in Uganda, but in the wake of big fines in Kenya, reducing client base in Uganda, and all kinds of economic and political pressures at home in South Africa the future doesn´t look bright.
No-one who wants to make their money earn more money keeps it in a bank. Particularly not the richest people.
High Net Worth private investors are preparing to seize alternative asset investment opportunities this year amid the economic fallout from Covid-19, as alternatives remain a vital portfolio diversifier, according to research by Connection Capital, the specialist private client investment business.
Some 87 per cent of private investors are planning to maintain or increase their allocations to alternative assets over the next 12 months, according to a survey of clients with a total estimated net worth of GBP52.2 billion.
A total of 80 per cent of respondents say they will consider new alternative asset investments this year. Forty per cent are ready to invest immediately. Just over half (53 per cent) say they have increased their cash reserves since the start of the corona virus crisis and the most common reason given is to ensure they have liquidity when attractive investment opportunities arise.
Investment Owl clients enjoy fixed returns of between 12% and 20% per annum on their investments. They have access to a huge number of asset classes, various investment terms, varied risk profiles, and tax efficient structures – all sheltered by UK or European good governance and sometimes underwritten by European governments.
So next time the bank tell you the best place for your money is in a treasury bill where they make more than 10% commission or a fixed interest $ account where you make less than 6%………..tell them to hop off back to their pond!!!!
By Jon Bennion-Pedley.