Add some Interest to your Guaranteed Funds (part 1)

If you prefer to leave your money in a bank deposit account and let them make the profits from the following investments then please turn the page. There are a stack of interesting articles and advertisements in “The Observer” and anyway these guaranteed funds may be too exciting for you.
If however you think in times of economic uncertainty, with stock market volatility the order of the day, that the security of guaranteed funds is generally obtained at the cost of returns, then these two innovative investor-oriented guaranteed funds could whet your investment appetite.
When an investment sounds too good to be true, it is. Stick to this golden rule and your money will stick to you like glue. If someone offers you a guaranteed return of 9% per annum I'm very happy it's your money and not mine taking up the offer. If however a financial institution with a AAA pedigree can guarantee capital and have innovative ways of increasing it, it's worth looking at.
This month I have come across two such offers. As a broker and an occasional financial journalist I rarely recommended companies with less than a 140-150 year track record and at least 10 Billion dollars under management. Both these companies fulfill these criteria.
The First is Swiss Re. Established in Zurich in 1863 They are now the world's second largest reinsurer When the Swiss Re Guarantee Funds (minimum investment CHF15,000) mature, you benefit from the highest price the units have ever achieved. The fund offers first class returns since up to 75% are invested in European equities. There are three funds 8 18 and 28 years duration. For example; you invest CHF100,000 to day and let's say in five years your fund is worth CHF250,000. If then at year 8 when your investment matures there had been a stock market crash and your fund was only worth CHF 80,000 you would still be paid CHF250,000. No matter what happens you get back at least your original capital. In addition you have all the benefits of a Swiss domiciled investment.
The Second backed by the Tilney Group is called the “Opal Notes Series 4 and Series 4 Premium” (Minimum investment US$/Euro 25,000) is an eight year closed end investment offering with the objective to provide investors with consistent returns and low correlation to traditional asset classes. Opal Notes Series 4 performance targets is 16% per annum while Series 4 Premium targets 23% pa. These figures are achieved through leverage, unsurpassed access to hedge fund industry intelligence, unrivalled experience backed by operations in both the USA market and the European market and the confidence of more than 100 of the world's leading financial institutions.
Based on simulated historical data, the return of the Opal alternative growth fund US$100,000 invested 8 years ago would be worth US$400,000 today. If some of the world's best fund managers can't make any profit in eight years, the worst that can happen on maturity is that BNP Paribas will provide a full guarantee, irrespective of performance of 100% original investment.
John Norbury chairman of the Tilney Group “160 years of experience has given the Tilney Group an unparalleled understanding of the importance of customer service and personal relationships”.
These are complicated investments but I think they are perfect vehicles for the cautious investor to partake in speculative markets and know their capital is guaranteed with a huge potential upside. As the economists say look at the opportunity cost of not investing in these products After all the companies offering them are not “Side of the Road Investments Co.Ltd”. They are among the most respected and solid financial institutions in the world. One thing for sure; If you leave your money in the bank you can be sure the bank will be investing it in these funds or something very similar and I somehow don't think they will pay you the profits.
I appreciate anyone interested needs more in depth explanation of these products and will be happy to provide that or indeed any area of financial services.