Tuesday 25 September 2018
This email has some critical information that could be important and helpful for you.
At Embrace Capital we follow the financial markets very closely and two years ago I began to see a likely turn coming. We began shifting client portfolios, reducing their exposure to the increasing downside risk.
The problem was, as a financial adviser I could only effectively reduce potential client losses by half (i.e. if the market goes down by 50%, our client portfolios were projected to go down by ~25%). While this is a very good result by industry standards, neither I, nor my clients, were ever truly satisfied with it. It was after all, a considerable and concerning short-term projected loss, regardless of future projections showing positive returns overall.
In one form or another I grappled with this problem my entire career. In the end it seemed the only way to do better was to step outside the mainstream and create my own investment structure. In 2016 I started to do exactly that and I'm proud to say that today we have a unique, simple and very resilient investment offer with an ASIC registered prospectus. A relatively simple analysis (that any investor can do) shows that, even under extreme market stress, not only does our Tree Creek investment not take a loss, in fact it still delivers the full 15% return. By contrast, 'normal' investments under the same pressure show considerable losses. This rare feature is particularly valuable in the current market if you consider the following:
"We are very close to a bear market... we look at some leading indicators, one is telling us that we’re one second to midnight, the other one is saying it’s about eleven thirty… I think a lot of people are too confident … and not assessing the risks carefully enough, that’s what really worries me."
Geoff Wilson, AO, Wilson Asset Management.
The Business, ABC, Thursday 20 September, 2018
“It [the GFC] could all happen again … even within a matter of months.”
Nick Ferres, Vantage Point Asset Management
730 Report, ABC, Thursday 13 September, 2018
We truly hope a crash does not occur because a lot of people will get hurt, like they did in the GFC. The risk is very high right now. In addition to the above, Hamish Douglas from Magellan said in July that their portfolios were ‘the most defensive since the GFC’. Roger Montgomery has also been saying similar things for over a year.
These people are some of our smartest financial minds. Imagine if I approached you and said: “We’ve got this great investment, the best financial minds are saying the most likely outcome is that you’ll lose money in it over the next few years or at best you’ll make little or no money… would you like to invest?!” I’d rightly be treated like a leper. And yet, this hypothetical investment offer is the exact translation of the above quotes, the exact risk profile and outlook right now for most Australians, for literally anyone who has a standard investment, superannuation, shares, managed funds or investment property. The only difference is you're likely already invested in these things and (as Geoff Wilson warns above) you're likely not aware of the current risks.
How many people would willingly go against the warnings of these experts and expose their investments and life savings?
Of course, no one can say for certain what will happen. What I can say is that I have been working on our strategy to protect people’s money from these specific risks since 2016. I have created an investment designed to withstand the most extreme pressures (like a GFC) and still deliver the full target return to investors. This was not easy. Apply a GFC-scenario to almost any investment you can think of and what happens? People get hurt and lose a lot of money.
We are different by design.
Projections show our investment delivers the full target 15% return even under extreme stress test conditions.
Please don't take our word for this. I invite you to contact us, to test and see this for yourself. The Tree Creek structure is simple, robust and unique.
For a brief initial look at how we achieve this resilience in our investment, please see our 3min video. Our video was released in May, it predates the above quotes, delivering the same warnings, but with a solution.
As a final point, I invite you to notice how fully we back these claims and to ask yourself: do you have, or know, of any other firms or investments that do this? Our management team has completed over two billion dollars’ worth of successful developments. Our experience, along with full details of the project, is outlined in our ASIC registered investment prospectus, delivering ‘full disclosure’ to investors as defined under Australian law. You will see in that document that we take no fees, no return of capital, no benefit whatsoever, until and unless the investors are fully paid. It may have been done before, ‘no benefit until commitments are met and investors are fully paid’ combined with ‘an investment designed to withstand a GFC’ … but I’ve not seen it in my career.
We are different.
I encourage you to read our prospectus thoroughly before making any decisions. The prospectus is available for download on our website: www.embracecapital.com.au.
We hope to welcome you and those you know to our unique investment. Feel free to forward this on. Most people you know will not hear these warnings, or hear about our investment, unless you share it with them.
Don’t delay in considering this, applications close very soon.
The application is a simple one page online form, available here:
https://embracecapital.estatebaron.com/projects/64/interest
I appreciate your interest.
All the best,
Michael Korogiannis | Managing Director
Embrace Capital | P: 07 3013 0777
E: admin@embracecapital.com.au
