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Investors Shift Focus to Low Risk Alternative Investment Assets

Investors are allocating more capital to hard assets such as farmland and woodlands, in an effort to hedge inflation and lower the overall risk profile of their portfolios

United Kingdom of Great Britain & N. Ireland -- Free-Press-Release.com-- May 30, 2011 -- London, United Kingdom, (DGC) May 25, 2011 – As fears of sustained inflation combine with volatile market conditions and poor market visibility, more Investors are allocating capital to real where growth and income is supported more by socio-demographic trends than wider market performance.

David Garner, Partner at DGC Asset Managaement, an alternative investment boutique specialising in the direct acquisition of property based assets in agriculture and timber said: “We have seen a significant increase in new business from Investors searching for assets that tend perform well in an inflationary environment, and generate an income stream that isn’t dependent upon interest rates or the performance of traditional asset classes such as equities.”

A recent study found that the Standard & Poor's 500-benchmark index's average annual return was 11.8% between 1950-2008, while the return on farmland with capital appreciation and current yield was 11.6%, but the volatility of the S&P is about double that of farmland.

“A good example is our Farmland Investment Program which has generated a cash return of around 10% per annum for Investors since 2007, even throughout the recent financial crisis.” Added Mr Garner.

Successfully acquiring prime agricultural assets can be costly, with larger amounts of capital required to benefit from economies of scale, and many traditional asset managers such as Savills requiring a minimum of £5m to enter the market.

“The way we have structured our offerings means that we have opened up the market to smaller Investors with less than £10,000. Marrying investment capital from private individuals with prime assets and competent on-site management ensures that we can participate in large transactions and therefore better assets, without having to raise millions in capital from single Investors or Groups.” Said Mr Garner.

As demand for agricultural commodities grows, especially in developing economies, Investors taking control of productive agricultural assets growing wheat could find themselves well-positioned to benefit from population growth and economic expansion China and India.

About DGC Asset Management:

DGC Asset Management Limited (‘DGC’) is a privately held company registered offshore since 2007 (British Offshore Territory of Anguilla, British West Indies No. 2157486), and more recently (2011) as a privately held UK registered company (registered company no. 7541721).

DGC provide a platform for Investors to access private investment opportunities based upon the identification, purchase and effective management of non-correlated, income generating property assets, with a strong bias towards agriculture, timber and renewable energy, such as Farmland, Forestry and Woodlands in the UK and overseas.

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DGC Asset Management Limited
David Garner
0800 033 7125
http://www.dgcassetmanagement.com

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Investors Shift Focus to Low Risk Alternative Investment Assets

Investors Shift Focus to Low Risk Alternative Investment Assets

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DGC Asset Management Limited
David Garner
0800 033 7125
http://www.dgcassetmanagement.com
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