New Zealand-based wealth manager Fortress Financial has obtained commitments to invest $100m within a month of the launch of its Capital-Guaranteed Investment, due to begin trading in December.
In a release from the company, MD Hamed Mokhtar said the turbulent financial markets offer the opportunity to tailor products to stimulate investors and increase capital, thereby taking full advantage of opportunistic times. "The present financial market turmoil should not deter potential investors," said the firm. "[But] investors should be prudent enough to place their funds into more insulated products such as capital-guaranteed ...funds."
Capital-Guaranteed Investment is a protected version of a US equity investment, in which the firm specialises. Further product details were not available as SRP went to press. Mokhtar said, "We're US equity investors first and financially engineer our products around that foundation second... We've positioned ourselves well and look forward to a very sustainable and fruitful cycle." He said 'grade A' stocks are undervalued considerably.
The key to success is being meticulous about when to raise capital, how much to pay for capital and how to deploy it, while not hoarding funds, he added.
Mokhtar did not promise to continue to deliver the current return of 25% pa, but said the capital guarantee and even half the average current return would outperform the fund's benchmark 'by a long shot'.