*An investment opportunity which guarantees floor of 5% per month and a cieling of 20% per month under the requirements of the UK FSA (FSA= Financial Service Authority) and the Principles and Practices of Financial Management (PPFM) for any amountabove 500.000,00 Euro in a managed account scenario such as here would have to have past records, a strong balance sheet and impectable capital ratios as well as good and stringent operating procedures.*
The company which handle with the management has a very strong past investing records for bigger amounts of funds than this, and according to my working with this company as a non-forked consultant (exactly in insurance) in one of its committees, and to my cooperation with them for around four years, I have a positivism of its financial and managing records’ strength. And according to the presence of six committees refer to its chairman.
*In this case here a guarantee of such a return would need a charge towards the equity of the operating vehicle, because such is the regulation following the PPFM that for such with-profit guarantee you have to provide a sensible charge back on capital just in case you do not make it or you have to have collateral available which is either pledged or seperated in management so that investors are either able to tap such assets or have a third party (either guarantee or asset manager) which will cover.*
The guaranteed profits is only for an investment period not less than three years, which usually in a ceiling limits above the Interest ceiling and in a yearly form. I.e. the guaranteed profits are only for investors with a medium investment dimension, and usually not more than 8%.
*Just keep in mind that if you receive the above return for one year on for example 500.000,00 Euros given you always extract such return, you would receive per year about 300.000,00 to 1.200.000,00 in profit. The charge back or cover would have to accomodate the risk for 300.000,00 as the lowest floor guaranteed return.*
The risks management usually, for every Investor, puts what known as minimum risks and *maximum risks*, and these are contained in the contract which will be informed to the authorized company by the FSA, and for farther clearing, you may have the following example:
If your decided risk is 5%, it will be mentioned in the contract that the manager company has no rights to use more than 5% of the total invested amount.
*Now lets look at the investment. Since it is not a PPP (thank good for that) we are talking financial markets, meaning everything from equity and their derivatives, to commodities and their derivatives as well as commodities and their derivatives and forex and their derivatives, money and capital markets, all kind of fixed and floating income securities etc, so the whole range.*
*Some of these can be pretty risky and here in such arrangement even if the account and investment manager only manages the account and can only take out fees and income after the trade according to a fee arrangement made prior to the start, the account can loose because it has the full brunt of the risk and the fees.*
All the financial markets have high levels of risks, that’s correct, but we still have specialized teams for managing the risks with the coordination with the Investor, as what mentioned before.
And the fees and all mentioned info above shouldn’t have this black picture, because the manager company takes the full care with coordination with the authorized company to keep the risk as what decided, and not according to the company workers’ decisions.
If the company looks for the fees only, it can be authorized by any authority to be a mediatory company only, and keep the headache away.
*The information that the funds are insured can be anything from an e&o (errors & omissions) to a depositary insurance cover from the bank or otherwise. It does not guarantee the balance of the funds through the investment procedure. Defacto the investor has the following guarantees:
a. a profit low and high
b. manager does not touch account beside as allowed for investment
c. the account bank is covered when they make a mistake or go bankrupt.
Beside the fact that such insurances are increasingly not worth the money paid (or not paid) for them the account balance can loose, the guarantee for the profit means only that you get at least 5% a month even when you loose 20% of the value plus the fees. (hey its a possibility, and not that far fetched).*
Insurance: Despite all your suggested theories, the company uses the insurance on the operations and not on the deposited funds, and this style means:
When we open an operation, the company pays 3-5% of the operation value, as a non refundable insurance. And in case the operation is lost, the insurance refunds the full operation value to the Investor’s account, and the company looses what it paid. And in case the operation is gained, the investor pays for the insurance if the profit is more than what insured.
*Therefore to engage this you need to use only playing money (something you can loose without loosing sleep or similar essentials of your live), engage only with a strong and highly regulated and audited company, have at least 4 to5 years history of the manager, understand the risks and have them spellt out in detail by the company and have banking with very good banks only.*
I was preferring not to steer your talks in this way, because the playing money has no possession in this situation, according to the fact that this is a reasonable discussion away from any wink or imprecision clauses. And the company I had talked about it before.
There are risks here if you do not follow this, and even if there are risks.
There are no work without risks, but in the presence of a strong management of the risk means the risk will be always under control.
*However 5% to 20% per month is high and usually needs high leverage anyway, so such a good profit only comes with considerable risk, so nothing for the faint hearted.*
The mentioned profits is, in general, and if you asked any worker in the markets, he will answer you in a better way.
But I will mention a small example for you:
Amount: *$100,000*
Market: FOREX
Period: 22 days
If you opened a contract with a value of $1,000 (1%) and it was EUR/USD buy or sell (according to the analysis) and the currency moved 10 points (usually 50-150 point every day), which means 10% of the contract value($100), daily for 22 days means 2,2% monthly (with the most minimum risk).
I think the conversation about profits needs a vision on the markets always.
*I would suggest that if you want to offer such things here you better use a specific term sheet which spells out everything in short description and go from there.*
I really have the detailed sheets, but for not using them by the Internet crazies, I preferred not to propagate, and through the LOI, I will differentiate between the real and fraud Investors.
*ANything else will still cost a lot of time sorting the real investors and risk takers from the wannabee's . God luck and have a nice time in Jeddah.*
****Allah Yi sallimak****
I think you had seen that the replies are all talk about the unreason, and all that because of the judging without INSIGHT.
Thanks for you and for your comments.
I was wishing that I find replies as yours, even if they are talking about theories.
* Jeddah is too beautiful, I hope you can visit it.
Regards,
ppp.bank
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