Thinking outside the borders
Are you nervous about the value of your domestic currency depreciating during these volatile times?
At Invest Offshore, we recommend investments in top rated international hedge funds, mutual funds and fund of funds, which are denominated in strong currencies, with little exposure to toxic debt. We believe using managed funds can be a profitable strategy for clients with any risk tolerance; it is not limited to aggressive investors.
It is challenging to find reputable funds that are denominated in currencies outside of the Big Three (USD, EUR, and GBP). However, we feel that the reflective economies of the Big Three have lost some luster and that clients can profit from additional currency exposure in their portfolio.
Invest Offshore has access to managed funds that are denominated in several strong currencies: Norwegian Krone, Canadian Dollar, Swedish Krona, Australian Dollar, Danish Krone, Swiss Franc, and many others. As national debt increases in much of the world, these currencies have the potential to gain strength against the USD, EUR and GBP over the next few years.
To give an example, a client invests in a hedge fund that is denominated in a currency with the potential to strengthen over the domestic currency. If the hedge fund achieves a return of 10% that year, and the currency appreciates 10%, as well; the client doubles their profit relative to an investment in their domestic currency. This is a more lucrative way for clients to achieve currency diversification in their portfolio, than traditional cash diversification.
We know that our international reach and creative investment strategies are a formula for success. We also know that what separates good investors and great investors is the ability to clearly see out of the box, or in this case, out of the borders.
If you are interested in this concept, have further questions, or would like information on the funds we offer contact us today.
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