Alchemy’s Investment Tips – Superannuation as a Diversified Asset Class!

  • We’re quite fortunate to have Charles Lee owner of Alchemy Capital – PNG Limited share a few of his investment tips. Lee was the former Chief Investment Officer at Nasfund and we’re thankful that he’s agreed to share some his tips to our audience.

    Over the next few months, we expect to share more of his tips, however, we do note that the publication of the content is for information purposes and we recommend that you contact him directly or seek other investment advice for your own specific circumstances.

    Superannuation as a Diversified Asset Class!

    Before we get to that, here are some basic investment tips.

    There are four main asset classes that we can invest in. They are in order of liquidity (ease of converting into cash) in our PNG context as opposed to other countries:

    1. Cash (money market, IBDs or cash equivalents);
    2. Shares (stocks or equities);
    3. Fixed Income (bills and bonds);
    4. Property (real estate or land).

    A good mixture of the four main asset classes based on your risk appetite and desired return profile will give you a balanced investment portfolio that suits you.

    As part of your risk management, you then rebalance your portfolio each year to ensure that it doesn’t breach the limits of your weighting/allocation for each asset class.

    Now superannuation funds employ experts and consultants to incorporate all the above. They manage an aggregate investment portfolio on behalf of their membership. They are fast becoming the “fifth asset class” on their own in other parts of the world and PNG will be no different.

    Did you know that if you invest in their voluntary contributions, you are treated no differently from ordinary working members? You receive the same return and risk management tools employed by the fund.

    While there is always a possibility of loss, employing best practice in mitigating risk of loss is paramount and superannuation funds can achieve that for you! Talk to one today!

    Hope this can be profitable for you!

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    Author: Administrator

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