NatanelFlorens is a Nigeria company that has ventured into a western dominated business called high yield investment. A lot of people still see this kind of business as foreign or internet thing. A brief explanation is needed to educate Nigerians on what high yield investment is all about.
In finance, an investment is buying or creating an asset with the expectation of capital appreciation, dividends (profit), interest earnings, rents, or some combination of these returns. This may or may not be backed by research and analysis. Most or all forms of investment involve some form of risk, such as investment in equities, property, and even fixed interest securities which are subject, among other things, to inflation risk.
In economics, investment means creation of capital or goods capable of producing other goods or services. Expenditure on education and health is recognized as an investment in human capital, and research and development in intellectual capital. Return on investment (ROI) is a key measure of an organization’s performance.
TYPES OF INVESTMENT
There are two main classes of investment:
WHO IS AN INVESTMENT MANAGER?
As investment is the process of redirecting finance towards profit generation. Investment management involves the professional management of various financial securities and assets belonging to an investor for the purpose of earning maximum benefits. An investment manager is an individual who manages investor’s finance and focuses it on yielding future benefits for the investor. Investment managers manage investment portfolios and operate under the government’s securities legislation.
Investment managers are also known as ‘fund managers’. The term fund or investment manager refers to both an individual who helps direct investment management decisions, and institutions providing financial services.
An investment manager is usually part of a large financial institution: a bank, a trust, or a life insurance company. Investment managers manage the investment portfolios of these institutions, and may also provide direct investment management services to third-party clients. Since investment managers are required to manage money for investors, they are also involved in ‘investment counseling’. Investment management companies providing this service are required to license their investment managers as ‘investment counselors’ or ‘investment counsels’. An investment manager involved in counseling is also expected to possess certain level of management acumen, and to hold relevant professional experience in the investment industry.
WHAT DOES INVESTMENT MANAGEMENT INVOLVE?
Investment management involves the following processes:
Setting investment objectives: Investment goals will differ depending on who invests and the purpose behind the investment. Investments can be made by financial institutions, such as banks, pension funds, insurance companies, etc. Investments can also be made by private investors focused on generating high returns on investments. Investment managers help set investment objectives depending on investor decisions.
Formulating an investment plan: Following the setting of an objective for investment, investment managers help formulate a plan for investment. An investment manager will draw up investment plans based on factors like risk profile, financial capacity of investors, market factors and economic conditions, and in line with government regulations.
Establishment of the portfolio strategy: An investment manager will weigh the objectives and constraints and classify asset classes accordingly. Asset classes include financial securities (fixed income, foreign), debts, equities, currencies, and / or real estate (commercial and residential). An investment manager is responsible for selection of assets for investment from the asset classes.
Since investment management is an ongoing process, investment managers are expected to consistently evaluate and improve their investment portfolios.
ROLE OF AN INVESTMENT MANAGER
Every individual interested in securing his / her future through investment, practices investment management. An investor will need to save money, draw up a budget, spend wisely and invest a substantial sum towards buying high profit potential assets or financial securities. But while everyone can make investment decisions, not everyone should. An investment manager is a professional who specializes in investing and is qualified to take the right decisions; placing money in the best profit yielding instruments to accomplish goals and predetermined targets.
An experienced investment manager will help investors in the following ways:
- Discerns the best strategy for investments
- Analyses status of finance, and assist in asset and stock selection
- Monitor investments on an ongoing basis
- Helps to gain maximum benefits from investments
- Provides advice on investment areas
- Handles investor decisions and investments with the utmost discretion
TYPES OF INVESTMENTS AND INVESTMENT MANAGERS
Investment management is often described in terms of fund management, asset management, money management, wealth management, portfolio management and advisory investment management. Fundamentally, they have a few minute differences. Investment managers involved in these different areas of investment management have specific responsibilities to fulfill.
Asset (Portfolio) Management and Asset Investment Managers: The term asset management refers to the management of collective investments made in multiple investment options on behalf of groups of investors, e.g. mutual funds. An asset investment manager is required to make decisions that will result in the maximum returns possible. The decisions taken by an asset or portfolio investment manager should be based on well-researched information, financial profitability, predetermined investment targets and availability of resources.
Money Management and Money Investment Managers: Money investment managers may manage a client’s investment portfolio without his / her approval, e.g. mutual funds. This form of investment management is known as ‘discretionary’ money management. The money investment manager manages the investment portfolio independently; sets goals, builds budgets, cuts down on unnecessary expenses, saves money and makes investments based on the investor’s risk constraints. Money investment managers are focused on achieving profits for the investor’s current and future stability.
Wealth (Portfolio) Management and Wealth Investment Managers: Private investors, typically wealthy individuals, will invest money in the capital market. A wealth or portfolio investment manager manages the investment accounts of such high-net worth individuals.
Advisory Investment Management and Investment Advisors or Advisory Investment Managers: An advisory investment manager offers investment recommendations and suggestions regarding investments; where to invest, when to invest, how to invest, when to sell securities, and so on. Advisory investment managers may either provide asset management services on behalf of corporate investment firms, or directly manage a client’s assets. Hiring good advisory investment managers ensures the efficient management of investor finances and high returns on investments.
HIGH YIELD INVESTMENT
These are investments with high rates of return. Generally, a high yield bond will be ranked very low by a rating agency, because these are bonds which have a relatively high chance of default, and therefore have to offer higher returns. Similarly, a stock will offer a high dividend yield in order to compensate for lower expected capital gains, for example a large company in a mature industry which is no longer growing.
An asset whose current income (dividend or interest) yield is relatively high compared to its peers is called high yield; these investments generally carry with them correspondingly higher degrees of risk, and in the case of bonds, lower ratings.
High yield investments bring high profits. Of course everyone wishes to get more and at once, especially when it comes to investing money. But, the more you want, the higher are the risks involved. Sometimes it is better to stay on the safe side; sacrifice the high yield investment plans and get safe.
ADVANTAGES OF HIGH-YIELD INVESTMENTS
Many good companies run into financial difficulty at various stages of their existence. One bad year for profits or a tragic chain of events may cause a company’s debt obligations to be downgraded to a level below investment grade. Because of these additional risks, high-yield investments have generally produced better returns than higher quality, or investment grade, bonds. If you are looking to get a higher yield within your fixed-income portfolio, keep in mind that high-yield bonds have typically produced larger returns than some government bonds and highly rated corporate issues.
High-yield bonds do not correlate exactly with either investment-grade bonds or stocks. Because their yields are higher than investment-grade bonds, they’re less vulnerable to interest rate shifts, especially at lower levels of credit quality, and are similar to stocks in relying on economic strength. Because of this low correlation, adding high-yield bonds to your portfolio can be a good way to reduce overall portfolio risk when considered within the classic framework of diversification and asset allocation.
Another factor that makes high-yield investments appealing is the flexibility that managers are given to explore different investment opportunities that will generate higher returns and increase interest payments.
The entrant of NatanelFlorens into the highly sophisticated industry makes them the leaders in the continent. This young company manned by highly experienced hands in various aspect of management is prepared to change the investment climate in Nigeria and the whole of Africa. This can be attested to by human, material and financial composition of the company.
NatanelFlorens Limited is an alternative asset management and premium business services company that offers high yielding investment options to private clients in real estate and private equity space.
NatanelFlorens Limited owns the Private Property Investors Trust (PPIT) Franchise in Africa and with it, offers a high yield, additional return of 80% on investment, plus whatever is the current yield on an investor’s property investment portfolio over 5years.
Services Of NatanelFlorens Limited
Alternative investment advisory.
Specialized funds & financial services.
Customized business services.
In order to be competitive, the company has a good team that steers the affairs of the firm which makes it investors’ delight. The team is made up of: Alhaji Abdulkadir Musa,Chairman; Mr. Andre – Regis Claeys, Non-Executive; Mr. Tola Atekoja, Non-Executive; Mr. David C. Ifezulike, Non-Executive; Mr. Lekan Abiola, Managing Director/ CEO; Mr. Yinka Daramola, Executive; Mr. Bamidele Olurin, Company Secretary.
To retain investors’ confidence and to accommodate a wide range of investors, NatanelFlorens has a package called Natanelflorens Intelligentsia.
Natanelflorens Intelligentsia, your one stop property investment solution;
- Property can be bought for investment with as low as N1m per property.
- The structure of the sale is via a Special Purpose Vehicle (SPV) called NF One Limited and investors will acquire stakes in the company which will in turn be invested in property.
- The Return on Investment (ROI) is fixed at 17% gross per annum.
- The cash payment of returns is as follows:
- 5% annuity payable yearly for 5 years.
- 12% x 5 years balance (60%) payable at the end of the 5th year.
- The investment tenor is for a period of 10 years.
- At the end of the 10 year tenor, the investors shall be paid the current value of the property as at that time or the sum of money invested, whichever is higher.
- The N1m investment captures the property’s current valuation and is inclusive of registration fees, transfer cost and professional fees.
- Return on Investment shall be on total value of investment i.e. N1m.
- Other unique selling propositions of the property investment sales are that:
- Investments are on property already yielding income (i.e. tenanted).
- Unlike treasury bills/bonds that their yields fluctuate, the property investment sales yields are fixed since rent can be determined and PPITTM yield fixed. It guarantees the highest return on investment in terms of value.
iii. It offers the opportunity for capital appreciation without the burden of Capital Gains Tax (CGT).
- It is highly liquid i.e. easy disposal or sales.
- It encourages partial divestment (i.e. can be sold in parts).
With the involvement of NatanelFlorens in the global trend in investment, Nigerians will avail themselves of the advantage of the wide range of investment window to join the rest of the world in making calculated investment. The firms head office on Bamako Street; Wuse Abuja has become a Mecca to investors who troop in to be part of the latest trend in investment.