Investing wisely is a constant pursuit for individuals seeking financial growth and security. At ASMX, we understand the importance of providing our investors with innovative opportunities that deliver substantial returns while managing risks effectively. In this post, we discuss the ASMX Experienced Investor Fund (EIF) with its new property-backed element, that aims to provide substantial returns while unperpinning the Fund’s strategy with bricks and mortar.
1. Enhanced Diversification The ASMX EIF, what we call the “Growth Finance Fund” offers investors a chance to diversify their investment portfolios by tapping into short term strategies of a) underwriting deals on ASMX connected platforms (like investment banks do) and b) buying equity in soon-to-be-listed companies.
With the addition of the property-backed element, the fund unlocks a new avenue for investment in real estate. This provides investors with exposure to the high yield property market in jurisdictions such as Dubai, which provides a historically resilient asset class that can potentially generate attractive long-term returns to augment the short term asset holding of the two main strategies.
2. Access to Exclusive Investment Opportunities ASMX is committed to providing our investors with access to exclusive investment opportunities and therefore each new company that is listed on stock exchanges through regulated connected platforms is exclusive to the ASMX ecosystem. The Growth Finance Fund has the opportunity to underwrite fund raising for these listed companies and earn a fee for doing so.
The Growth Finance Fund’s property-backed element enables investors to participate in carefully selected real estate projects with promising growth potential. These opportunities are carefully vetted by our experienced real estate partners, offering investors a chance to invest in high-quality properties that may not be readily accessible to the general public.
Our initial target for building the property portoflio in the Experienced Investor Fund is Dubai’s thriving real estate market. It offers investors a wide range of investment opportunities, and one particularly compelling strategy which has been implemented in the Growth Finance Fund is investing in a blend of off-plan and rental properties.
1. Potential for Capital Appreciation Investing in a blend of off-plan and rental properties allows investors to tap into the potential for significant capital appreciation. Off-plan properties, being purchased during the construction phase, often offer attractive pricing and the opportunity to benefit from price appreciation as the project progresses. On the other hand, rental properties can provide a steady income stream while also benefiting from long-term capital appreciation. This dual approach can enhance overall returns and provide investors with the potential for substantial wealth creation.
2. Diversification and Risk Mitigation Investing in a combination of off-plan and rental properties in Dubai enables the Fund to diversify its real estate portfolio, spreading risk across different property types and locations. Off-plan properties can offer higher growth potential, while rental properties provide a stable income stream. By diversifying across both segments, investors can mitigate risk and reduce their exposure to any one specific property type or market segment.
3. Attractive Rental Yields Dubai’s rental market remains strong, with high demand for quality rental properties. Investing in rental properties allows investors to generate consistent rental income, benefiting from attractive rental yields. The blend of off-plan and rental properties can create a balanced portfolio that includes properties with high rental demand, helping investors secure a reliable income stream and potentially achieve attractive rental yields.
4. Early Access to Promising Developments Investing in the Growth Finance Fund grants investors early access to some of Dubai’s most promising off-plan real estate opportunities. This offers a unique opportunity to secure properties at competitive prices before they appreciate in value. By identifying projects with strong growth potential and engaging in thorough due diligence, the Fund can position itself to benefit from the future success of these developments, potentially yielding significant returns.
5. Portfolio Flexibility and Wealth Accumulation Blending off-plan and rental properties provides the Fund with flexibility in managing its real estate portfolio. However we have built in further flexibility for the Experienced Investor Fund. The property portfolio itself will be listed on the exchange through an ASMX connected platform and with bid/offer charateristics the Growth Finance Fund is able to buy and sell when it needs to cover 50% on a new investment in the Fund or sell if required for redemptions.
The Fund can choose to sell off-plan properties upon completion to capitalize on capital appreciation or hold them as rental properties to generate ongoing income into the portfolio. This flexibility allows the Fund to adapt its investment strategy based on market conditions, maximizing investment returns.
The two mauin strategies of the Fund can produce compelling returns but we also feel that augmenting the Fund with property underpinning 50% of the fund will reduce potentila cash drag and give investors a long term strategy should they so wish.
*IMPORTANT: The ASMX Growth Fund is an Experienced Investor Fund regulated in Gibraltar by the Gibraltar Financial Services Commission. The Fund is governed by the Experienced Investor Fund rules and, as such, only allows those who qualify to invest. The minimum investment in the Growth Finance Fund is £100,000.