HNW investors have aggressively increased portfolio allocations in favour of private assets over the last 5 years (32% to 44%), funded mostly by reducing public asset allocations. Family offices expect to increase their allocation to alternatives further. There is a particular focus on multifamily residential real estate, which has shown consistent rental growth across various cycles. – 2024 Goldman Sachs Family Office Report
Risk Declaration and Disclaimer
The information provided by SWAN Wealth Management (Pty) Ltd is for general informational purposes only and should not be interpreted under any circumstances, directly or indirectly, as financial or investment advice, an offer to sell, or a solicitation to purchase any securities or investment products. Past performance does not guarantee future results, and investors should not base their investment decisions solely on historical performance, as it may not be indicative of future outcomes.
RISK:
The Actively Managed Certificate (AMC) on the SWAN US Private Real Estate Investment Opportunity (ISIN CH1276874281), listed on the Swiss Stock Exchange (SIX), is a private investment with specific risks, including but not limited to:
- Unregulated Investment: An AMC is not a collective investment scheme. It is an unregulated investment, meaning it falls outside the purview of the South African Financial Sector Conduct Authority (FSCA). Investors should be aware that, as an unregulated investment, the AMC does not offer the protections associated with regulated financial products in South Africa.
- Liquidity Risk: Investing in this AMC may involve liquidity risk. Due to the nature of the underlying assets or market conditions, it may be difficult to sell or liquidate the investment quickly without affecting its market price. Investors should assess their liquidity needs before investing in the AMC, as accessing funds may be delayed or restricted.
- Investment in Unlisted Assets: The AMC invests in unlisted real estate assets, which may have limited liquidity and longer investment horizons. These assets may present valuation uncertainties compared to listed securities.
- Market Risk: The value of the AMC can fluctuate due to changes in market conditions, economic factors, and political events, which may impact the value of the underlying real estate investments.
- Credit Risk: There is a risk that issuers of securities or other financial instruments in which the AMC invests may not fulfil their obligations, leading to potential financial losses.
- Interest Rate Risk: Fluctuations in interest rates may affect the value of real estate investments, as they can influence the cost of borrowing and property values.
- Regulatory and Legal Risk: Changes in laws, regulations, or government policies can impact the real estate market and the AMC’s operations.
- Foreign Investment Risk: As the AMC focuses on US real estate, investors are exposed to risks associated with foreign investments, including currency exchange rate fluctuations and differences in accounting and taxation policies.
It is recommended that investors seek independent financial and legal advice before making investment decisions.