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What
Is “Investment Management”?
“Professional management of money, to provide investors with
the best returns from their investment, at all times”
How do you do this?
“ We buy stocks and bonds (on your behalf), that we believe
offer future gains, that will become your gains. We look
after your investments every day, and are able to make
immediate changes as needed to ensure your investment
(money) is always giving you the best returns”
What are “stocks and bonds”?
“Stocks” represent ownership in a company’s equity
(or “profits”). You buy equity through purchasing “shares”
on a stock exchange. There are stock exchanges all over the
world. By owning the “stocks” (or “shares”), you are
entitled to the profits that may be paid out in the form of
“dividends”
“Bonds” are a “loan.” A company or government
that wants to borrow money (for 1,5, 10+ years) will issue a
“bond” that identifies the interest rate they will pay (for
the loan), and how long they want to borrow money for.
Investors buy the “bond” and receive the interest every year
until they sell it / matures.
Why should I put my money in “stocks” and “bonds”?
“Stocks are more ‘risky” (as the price of shares go up and
down) but provide higher returns. For instance, as of
December 2005, the Botswana stock market gained over 23% for
the year. Very nice!”
“Bonds can provide a nice “income stream” because you
are offered a certain interest payment each year that you
hold the bond. Some bonds “mature” in 10 or 20 years, so if
you had such a bond, you would be receiving interest until
this time. Some interest payments (called a “coupon”) are
high – in Botswana – the coupon payments from government
bonds are over 9% a year. That’s more than what a bank will
give you for fixed deposit!”
“Stocks and bonds offer higher returns than keeping your
money in the bank. Yes, there are risks associated with
“investing” in this, but that is why we are here today to
inform you about different opportunities. We are
“professional” investment managers, trained and experienced
in managing money. It is our job, as “professional”
investment managers, to research and find the best
investment opportunities for you, and to look after your
investment every day. Through our global strategic alliances
with the world’s leading investment managers, we are able to
offer you both domestic (Botswana) and international
(offshore – Europe, America, Asia) capability and services.
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