Maximizing Profits in Real-Estate through Carry Trade between bond portfolio and Euribor interbank lending rate

Welcome to our exclusive Wealth Management program where we unveil a lucrative opportunity for you to earn substantial returns from the comfort of your own home. Today, we will delve into the concept of carry trade and how it can significantly boost your investment portfolio.

Imagine this scenario: you possess a portfolio of $10 million, invested in European corporations that generate an impressive 8 percent annual return. Now, here's where it gets interesting - private investment banks can offer you a pawn loan at an average rate of 4.6 percent per annum, which includes the Euribor 3m 3.6 percent interbank lending rate and a mere one percent bank commission.

Here's how you can capitalize on this opportunity: build a diversified portfolio of euro bonds that yield an average of 8 percent per annum. Simultaneously, secure a pawn loan at a favorable rate of 4.6 percent. With these funds, you can purchase a property in Europe and unlock an additional 3.4 percent annual return through the carry trade difference. In essence, this strategy can potentially generate an extra 300 thousand euros from a $10 million portfolio. Quite enticing, isn't it?

By diligently implementing this highly profitable option, you can not only secure a luxurious residence but also enjoy the additional income derived from the carry trade differential. We urge you to consider this opportunity meticulously and commence your journey towards astute investments, all while relishing the comforts of an opulent lifestyle.

To further enrich your knowledge on intelligent investing, we invite you to explore our comprehensive collection of enlightening articles. These resources will equip you with the necessary insights and strategies to navigate the intricate world of finance, ensuring your investment decisions are informed and fruitful.

Join us on this remarkable journey of wealth accumulation through carry trade, and let us guide you towards a future of financial prosperity. Contact us today to embark on an exciting path towards maximizing your returns and achieving your financial goals.

If you want to participate in  Carry Trade between bond portfolio and Euribor interbank lending rate  and your investment is more then 6-7 mill usd please contact us at email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Setting Up a Mauritius VCC Sub-Fund at Low Cost: A Comprehensive Guide

Introduction:

The Mauritius Variable Capital Company (VCC) has emerged as an attractive jurisdiction for setting up investment funds due to its favorable regulatory framework, tax benefits, and cost-effective structure. In this article, we will delve into the process of establishing a Mauritius VCC sub-fund at a low cost, highlighting its benefits and the potential savings it offers.

1. Understanding the Mauritius VCC Sub-Fund:

The Mauritius VCC is an open-ended investment vehicle that allows for the creation of sub-funds, each with its own distinct investment strategy and portfolio. This structure provides investors with the flexibility to invest in specific sub-funds based on their risk appetite and investment objectives.

2. Low-Cost Setup Process:

Setting up a Mauritius VCC sub-fund can be achieved at a relatively low cost. The approximate cost breakdown includes:

a. Legal Fees: The cost of drafting the necessary legal documents for establishing the fund is estimated to be around $30,000 USD. It is crucial to engage experienced legal professionals to ensure compliance with regulatory requirements and the drafting of robust fund documentation.

3. Annual Administration Fees:

a. Administration fees for a Mauritius VCC sub-fund, including monthly Net Asset Value (NAV) calculations and audit fees, are estimated to be around $50,000 USD. These fees cover essential administrative tasks such as maintaining records, preparing financial statements, and ensuring compliance with regulatory reporting obligations.

4. Management Fees:

a. As per the regulatory requirement, a local fund manager should be appointed for the Mauritius VCC sub-fund.  A reputable fund management company, can be engaged as the fund manager. The management fees charged by fundmanager company are either 0.30% per annum on Assets Under Management (AUM) or a minimum of $20,000 USD. This cost-effective option ensures professional fund management while minimizing expenses.

Benefits of a Mauritius VCC Sub-Fund:

1. Tax Benefits:

a. Mauritius offers a favorable tax regime for investment funds, including VCC sub-funds. Dividends, capital gains, and interest income derived from investments made by the fund are typically exempt from tax in Mauritius. This tax efficiency enhances the fund's returns and benefits investors.

2. Investor Flexibility:

a. The VCC sub-fund structure allows investors to choose specific sub-funds based on their investment preferences, risk tolerance, and objectives. This flexibility enables investors to diversify their portfolios and tailor their investments according to their individual needs.

3. Regulatory Compliance:

a. The Mauritius Financial Services Commission (FSC) regulates VCCs, ensuring investor protection and maintaining the integrity of the jurisdiction. The robust regulatory framework enhances investor confidence and ensures compliance with international standards.

4. Cost-Effective Structure:

a. The Mauritius VCC sub-fund offers a cost-effective structure for fund establishment and administration. The low setup costs, combined with competitive management fees, make it an attractive option for fund managers seeking to optimize their operational expenses.

Conclusion:

Setting up a Mauritius VCC sub-fund at a low cost provides numerous benefits for fund managers and investors alike. The tax advantages, investor flexibility, regulatory compliance, and cost-effective structure make it an appealing jurisdiction for investment funds. By carefully navigating the setup process and engaging reputable service providers, fund managers can establish a successful VCC sub-fund that meets their investment objectives while minimizing expenses.

Setting up  quick  numbers:

Mauritius VCC sub-fund

Open-ended fund with monthly NAV calculations
Setting up a fund: ~30,000 USD including legal fees for drafting the documents
Annual fees for administration: ~50,000 USD including monthly NAV and audit fees
Management fees – as the fund should have a local fund manager, we appoint Amicorp as a FM: 0.30% p.a. on AUM or min 15,000 USD

For more information please contact us at email: This email address is being protected from spambots. You need JavaScript enabled to view it.

How setup  Cayman  SPC fund  at low cost

The Cayman Special Purpose Company (SPC) fund is a highly advantageous investment vehicle that offers numerous benefits to investors. This fund is required to be registered with the Cayman Islands Monetary Authority (CIMA) and must have at least one Special Purpose (SP) entity.

One of the primary advantages of the Cayman SPC fund is its flexibility and versatility. It allows investors to establish a separate legal entity for each investment, thereby providing enhanced protection and insulation against potential liabilities. This structure ensures that the assets and liabilities of each SP entity are ring-fenced, minimizing the risk of cross-contamination and safeguarding the overall investment portfolio.

In terms of setup fees, the Cayman SPC fund entails an approximate cost of $15,000 USD. This fee covers the initial establishment of the fund and the necessary legal and administrative processes involved. Additionally, there are CIMA fees associated with the setup, amounting to approximately $23,000 USD. These fees cover the regulatory requirements and oversight provided by CIMA throughout the fund's establishment phase.

Furthermore, the Cayman SPC fund incurs annual administration fees totaling around $52,000 USD. These fees encompass various administrative tasks, including the calculation and reporting of the fund's Net Asset Value (NAV) on a monthly basis. The NAV represents the total value of the fund's assets minus its liabilities and is a crucial metric for investors to assess the fund's performance.

In addition to the annual administration fees, there are CIMA annual fees amounting to approximately $7,000 USD. These fees contribute to the ongoing regulatory supervision and compliance oversight provided by CIMA. It ensures that the Cayman SPC fund operates in accordance with the jurisdiction's laws and regulations, thereby maintaining its credibility and reputation.

Moreover, our services extend beyond the establishment of the Cayman SPC fund. We also offer assistance in setting up a fund management company. This additional service enables investors to have a dedicated entity responsible for managing and overseeing the operations of the fund. By availing this service, investors can benefit from our expertise and experience in fund management, ensuring efficient and effective decision-making processes.

Cayman SPC fund:

Should be registered with CIMA and has at least 1 SP

Set up fees: ~15,000 USD
CIMA fees for the set up: ~23,000 USD
Annual fees for administration: ~52,000 including monthly NAV
CIMA annual fees: ~7,000 USD
We can also help with setting up a fund management company

For more information please contact us at email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Trading strategy using Kelly trading and option pricing in a professional way requires a comprehensive understanding of both concepts. Here is a step-by-step guide to developing such a strategy:

1. Understand Kelly Criterion: The Kelly Criterion is a mathematical formula used to determine the optimal allocation of capital in a risky investment. It helps to maximize long-term growth by considering the probability of success and the potential payoff.

2. Identify Trading Opportunities: Conduct thorough research and analysis to identify potential trading opportunities. This can be done through technical analysis, fundamental analysis, or a combination of both.

3. Determine Option Pricing: Use option pricing models, such as the Black-Scholes model, to determine the fair value of options. This involves considering factors such as the underlying asset's price, strike price, time to expiration, volatility, and interest rates.

4. Assess Risk-Reward Ratio: Evaluate the risk-reward ratio for each trading opportunity. This involves determining the potential profit and the associated risk of the trade. Calculate the expected return and the probability of success for each trade.

5. Calculate Kelly Criterion: Apply the Kelly Criterion formula to determine the optimal position size for each trade. The formula is: Kelly % = (W – [(1 – W) / R]), where W is the probability of winning, and R is the win/loss ratio.

6. Implement Position Sizing: Based on the calculated Kelly %, determine the appropriate position size for each trade. This ensures that the capital is allocated in a way that maximizes long-term growth while considering the risk involved.

7. Monitor and Adjust: Continuously monitor the performance of the trading strategy and make necessary adjustments. This includes regularly updating option pricing calculations, reassessing risk-reward ratios, and recalculating position sizes based on changing market conditions.

8. Risk Management: Implement risk management techniques to protect capital and manage potential losses. This can include setting stop-loss orders, diversifying the portfolio, and using hedging strategies.

9. Backtesting and Simulation: Before deploying the strategy with real capital, perform backtesting and simulation to evaluate its historical performance. This helps to identify potential flaws and refine the strategy accordingly.

10. Continuous Learning: Stay updated with the latest developments in option pricing models, market dynamics, and trading strategies. Continuously improve your knowledge and skills to enhance the effectiveness of the strategy.

Remember, developing a trading strategy using Kelly trading and option pricing requires expertise and experience. It is recommended to consult with a professional financial advisor or trader to ensure the strategy is tailored to your specific financial goals and risk tolerance.