Thrive in the Roaring Twenties with 2020 vision and PMA
“The more truly uncorrelated assets you add to your portfolio, that are both liquid and illiquid and scattered all around the world, and are income producing, the less risk you are actually taking to achieve a rate of return that your peers don’t even think is possible.” Ray Dalio, Founder, Bridgewater Associates.
The decade ahead brings new challenges for investors to ensure their asset allocations are sound, and their investment selections within their overall portfolio framework are best of breed.
One might suggest this has always been the case, however, history tends to rhyme, rather that exactly repeat itself. The USA used policies similar to quantitative easing during the 1930s. Japan first engaged quantitative easing two decades ago. For all or most of the last decade, the central banks of many major developed countries have undertaken quantitative easing policies, and most continue to do so as we enter the new decade.
Ongoing QE creates the need for long term investors to search for yield in new areas. Banks’ appetite to lend money has decreased significantly since they have been forced to become more protective of their balance sheets and capital adequacy ratios. Many exciting new businesses are offering investors superior yields, often with capital safety. Occasionally these opportunities also offer a healthy stake in the company.
Many readers will remember life before the internet, GPS/satellite navigation, smart phones, social media, cloud computing, digitalisation, blockchain, artificial intelligence, virtual payments.
Two decades ago, the global population was 6 billion, it is now 7.6 billion, with urbanisation bursting through 50% back in 2007, and heading towards 66% by 2050 according to a UN report. An incredible 4.5 billion people, 58% of the global population have access to the internet. Alongside the many benefits this brings, the increasing reliance on the internet of things also introduces new risks, hence Cyber Security is becoming ever more important.
Environmental awareness, ESG, Sustainability, Impact Investing. Alongside the expanding global population, there is a real need to understand and care for our environment and help the disadvantaged. ESG focused investment began about a decade and a half ago and has gained significantly more attention during the last decade. The Roaring Twenties will continue to see investors allocate greater attention and a bigger percentage of their assets to ESG, Sustainable and Impact investments. Actions speak louder than words, and a double bottom line of ESG Impact and Financial performance is a more beneficial outcome for everybody.
Medical advancements and breakthroughs are accelerating with the aid of technology and innovative minds. Many amazing projects that aim to provide highly impactful outcomes for the developed and developing world require funding from the private sector. Alongside philanthropic funding, there are real commercially and impactfully viable investment opportunities.
Water and food security issues will increase dramatically during the next decade. Climate change, overuse, poorly drawn borders leaving some countries reliant upon neighbours for water supply create a massive supply/demand mismatch. The water rich countries may end up exporting to the water poor countries. OWEC (organisation of water exporting countries) could become more important than OPEC, which is already feeling the effects of clean and renewable energy displacing oil dependency. Advances in efficient water purification and desalination are needed to help resolve the global imbalance and ensure the world’s population has access to water and food. Increases in agricultural efficiency and the development of alternative protein sources will be necessary to feed the world in future.
PMA Assets focuses on connecting investors and allocators to expert fund managers and entrepreneurs with a compelling edge, specialising in niche strategies and innovative projects.
To help align your 20/20 vision and to thrive in the Roaring Twenties decade ahead, here are 20+20 diversified, best of breed investments to consider:
1. Digital Home Equity, asset backed investment in residential real estate
2. Next Gen crypto exchange with gamification
3. Digitalisation and tokenisation ecosystem
4. Digital assets custody and settlement
5. Disrupting the USD74trn Fund industry through network effects
6. Crypto payments, B2B solution
7. RegTech immutable paperless documentation, ESG, Impact
8. First App based challenger neo-bank in ASEAN
9. Government backed gold tokens
10. Blockchain Venture Capital Fund
11. Crypto momentum tracker Fund
12. Blockchain wealth management platform
13. Digital assets brokerage platform, live and revenue generating
14. Cyber Security Fund, daily liquidity UCITS
15. Brazil equities
16. ESG Global Equities
17. Frontier markets equities
18. Systematic US equities with permanent hedge, daily liquidity UCITS compliant
19. AI automation, Asia focused
20. Co-living real estate UK and USA
21. UK purpose-built student accommodation
22. UK Tech Innovation Hub and Residential Park
23. Litigation Funding, UK financial services, high yield
24. Gold Backed Note, physical gold arbitrage, high yield
25. Asia trade finance
26. Indian beverages company, working capital term loan, high yield
27. Gold Streaming and Royalty Finance, high yield
28. Water purification
29. Cervical cancer medical testing and diagnostic breakthrough, Impact
30. Healing without a skin graft, deep tissue wound repair breakthrough, Impact
31. Quant global macro spin out
32. India Venture Capital
33. Hemp operating company - solving supply chain bottlenecks using innovative technologies
34. Sexual health and wellbeing, FDA registration due Q1 2020
35. Children’s clothes and accessories online marketplace
36. Marketplace of marketplaces
37. Greek Agri-food Private Equity Fund, Impact
38. Marketplace for giving, Impact
39. Water based replacements for toxic chemicals, Impact
40. Hedge overlay, diversified value driven options strategy
Begin the Roaring Twenties by diversifying your portfolio to achieve a rate of return that your peers don’t even think is possible.