Traditional investment thinking challenged
Absolute Capital challenges traditional investment thinking
22 March 2006
While meeting with the financial advisory community in New Zealand, Absolute Capital Group Limited (Absolute Capital), a leading specialist boutique structured credit manager and promoter, is challenging the domestic investment community to think beyond existing practices regarding market risk and its relationship with investment.
The senior management of Absolute Capital is meeting with advisers and investors around New Zealand in a series of seminars that explain the latest market leading strategies developed by the company on ways to minimise risk through effective portfolio diversification.
Commenting on the Seminars Deon Joubert, Managing Director of Absolute Capital, said “The investment industry is conditioned to think along asset classes and not specific risk.
When one thinks about this carefully, there is a lot of overlap in portfolios between asset classes. Investors may not really be diversifying in terms of specific risks, only market risks.
Absolute Capital believes there are better ways to really diversify portfolios."
This seminar tour is being held in Wellington, Christchurch, Auckland from March 20-22 and follows a successful launch in December 2005 of the innovative Packaged Income Notes (PINs) 2005-1 product. This new product is fully subscribed and trading at the issue price Commenting, Joubert said, “This is early days, of course, in a seven year product cycle. We see this is a marathon and not a sprint. We look forward to working to maximise the returns for all those New Zealand investors who agreed with us that this PINs offer provides an effective solution to the current market conditions."
Joubert advised that Absolute Capital has committed to NZ for the long haul and is already investigating additional innovative products for the market.