Investing in Real Assets
By 2030, the global population is estimated and forecast to increase by over 1 billion.
Source: United Nations
China’s demand for the fruit has been explosive and exports from countries like Mexico and Chile are currently experiencing about 250 percent growth rate annually.
Source: Financial Times
We are poised to structure an investment that will drive and provide the highest convexity, so that a high reward can be earned for every unit of risk taken. We see risk in terms of permanent loss of capital, rather than in terms of volatility. We have a conviction that niche growth markets like avocado are viable and superior investment opportunities in a world of limited resources.
Source: Business Insider
Preservation of capital is paramount to investing. Real assets provide adequate protection, especially in a world that has been distorted by the printing press of central banks across the world.
In terms of investing, there is nothing like free lunch. We provide true diversification from systematic risks. The naive geographical diversification however is not effective when needed the most i.e. when volatility rises and correlations increase.
Cash flows provide downside protection and are relatively a more stable way of determining expected returns.
Small institutions used to find it difficult to access investments in real assets like avocado orchards in Mexico. We come in here and enable exposure to this asset class, ideally by structuring investments for you to become a co-investor with an expert in a niche market.
Alternative investments have higher minimum investments than traditional assets. Most times, smaller institutions cannot afford to invest in these types of assets but with distribution ledger technology, we are able to provide lower minimums.
Alternative investments like real assets are illiquid investments. There is no exchange for avocado orchards like for stocks. That is, only investors with a very long time horizons were able to invest in real assets in the past. We therefore seek to improve liquidity by providing a market.
Naturally, the costs of acquiring and managing real assets are high. As such, smaller institutions cannot afford in-house expertise. We provide a fair reduction in these costs by using economies of scale.
“Brave men rejoice in adversity, just as brave soldiers triumph in war.”
Lucius Annaeus Seneca
Shared interests lead to shared success. We are rewarded if you have outstanding returns. We are penalized if you have a negative performance. Our remuneration reflects our value added.
“If you wish to be a writer, write.”
“Be crystal clear on what the deal is.”
Asymmetrica Investments AG
+41 78 731 02 08