View more on these topics

Cru creates ‘win-win’ investment in Africa

Cru Investment Management

Africa Invest Capital Protected Plan

Type: Capital-protected bond

Aim: Growth linked to the performance of the Cru Africa Invest fund

Minimum-maximum investment: £4,000-no maximum, Isa £7,000, £7,200 from April 6, 2008

Term: Seven years

Return: 100% of the growth in the Cru Africa Invest fund

Guarantee: Original capital returned in full regardless of the performance of the underlying investment

Closing date: April 18, 2008, April 4, 2008 for Pep/Isa transfers

Commission: Initial 4%

Contact: www.cruim.com/Africa

This capital-protected bond is linked to the performance of the recently launched Cru Africa invest fund, which invests in commercial agriculture in Malawi to reduce poverty in the area.

Capital Trust Financial Management partner Bruce MacFarlane feels this investment has the potential to offer a win-win scenario for IFAs and their clients while providing a helping hand for some of the many poor in Africa. “This product offers IFAs a new and unique ethical investment to take to their clients at a time when market conditions offer little direction and make many traditional investment propositions look unattractive,” he says.

MacFarlane believes investors can feel good about an investment with capital protection and unlimited upside potential in the knowledge that while they profit, they are also helping to reduce poverty and provide new sustainable financial opportunities to thousands of people in Malawi.
“It is understandable that many investors have concerns about the economic and political stability of African countries and this has been addressed by attaching capital protection after a seven year term,” says MacFarlane. In his view, the adviser remuneration is fairly standard and the literature is attractive, clear and concise.

MacFarlane struggles to find any potential drawbacks. “This product ticks all the right boxes and there is little I dislike about the investment concept. Certainly, for small lump sums such as an investor’s annual Isa allowance, this product could provide a unique and interesting way to diversify a portfolio that my be very rewarding on many levels,” he says.

MacFarlane finds little in the way of competition for this product. “It is unique and I see little in the market that would provide direct competition. There are a number of managers now looking to invest in Africa such as new Star, but these are investing in quoted companies rather than in the development of a business to acquire and develop farms and farmland to provide marketable produce and directly reduce poverty,” he says.

Summing up MacFarlane says: “I hope this investment gets the support from the IFA community I feel it deserves and, given time, succeeds in meeting and surpassing its aims and objectives.”

BROKER RATINGS

Suitability to market: Good
Investment strategy: Good
Adviser remuneration: Good

Overall 9/10

Recommended

Closepip shuts door on property

Close Investments has temporarily closed the doors on its property investment portfolio.The suspension also applies to the Active Commercial Estate sub-fund, of which Closepip is a majority shareholder.The move is expected to last for six months although this is subject to changing market conditions. Close says it will keep shareholders notified of all relevant details.Close […]

Broker Talkback

Is the FSA justified in increasing adviser fees by 10 to 15 per cent to pay for the costs of its treating customers fairly initiative?No 100%No “Given the amount of money that the FSA spends on parties and artwork, why can’t it get it back somewhere else instead of piling it on to IFAs?”Ashley Clark, […]

There’s something about pensions

The shock news that Tory Shadow pensions minister Nigel Waterson was arrested for assault came hot on the heels of former Work and Pensions Secretary Peter Hain’s resignation.

Whelan to join Fidelity Intl for European multi-manager

Fidelity International has appointed of Dermott Whelan to its multi-manager team as portfolio manager.Whelan has been at US investment firm Morgan Stanley for 18 years and has a 10-year track record in investment management. He will run Fidelity’s European equity portfolio when he joins in March.As well as running European equities at Morgan Stanley, Whelan […]

Developing your personal relationships – Webex

Read more 9amFinancial advisers and solicitors working together Presented by Ian Muirhead, director & chairman at Solicitors for Impartial Advice (SIFA) Listen to Ian’s expert insight and experiences of how financial advisers and solicitors can work together to deliver mutual benefit and enhanced client outcomes. Register here 10am Financial advisers and accountants working together Presented […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment