Ultra Portfolio
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ULTRA PORTFOLIO
Why invest in alternative assets?
An investment in alternative assets is an investment in the real economy – the assets are real, the jockeys are real and the numbers are real.
Slow Economic Growth. The unemployment rate, corruption and COVID are major contributing factors in low GDP Growth. Low corporate investment triggered by policy uncertainty, results in less job creation and a slow economy.
Alternative assets are not correlated to market volatility due to the lack of market sentiment. Alternative asset performance is based on company performance and not market sentiment due to supply and demand.
Due to the diversification of the alternative asset classes the standard deviation is reduced, resulting in lower volatility of the portfolio.
Investment risk is mitigated by investing in a minimum of 4 companies in 4 different sectors. This is possible with a Category 2 investment license.
Minimum investment: R 1 000 000
Yield: The Hurdle rate is 20% simple interest per year with a target yield of 30% simple interest per year.
Investment term: 5 - 7 years
Penalty on early withdrawal: 10%
Notice period: 6 Months
Diversification factor: Investment is diversified over more than 4 companies in up to 4 different sectors.
Above Hurdle rate split: The investor gets 40% yield generated above 20% yield per year.
*No Yield is payable from the withdrawal notice instruction date.
To offset the costs of the investment, a hurdle rate is set. This means that if the product provider does not reach the set hurdle rate, no costs may be deducted from the investors' investment.
The Hurdle Rate is the yield allocated to the client. Any costs, admin fees, performance fees, and broker fees are paid from the yield received above the hurdle rate.
This ensures that the client is set as first priority and the fund performance needs to be driven by the investment managers to be able to offset any costs incurred on the investment.
As with the true nature of Private Equity, we invest our client's funds following our mandate. To be able to achieve the contracted yield for our clients we diversify the funds into the below companies. The investment exposure will not be more than a 30% share per qualified company in the ultra product. The Ultra investment is designed with well above average yields in mind thus we will utilise the companies below to give our clients the expected result.
*If you need more detail regarding the qualified investment companies please ask for the Investment Memorandum Pack.
Contact Us
Building wealth, Optimate Solutions South Africa is your trusted partner in the alternative investment realm, offering bespoke solutions to your unique investment needs.
Clients have access to a boutique of Private Equity and 12J
Alternative investment vehicles according to their overall investment objective.