Personal Wealth / Private Banking Solutions

First Advisory financial consultants monitor market movements and we are well positioned to move on any good news market sectors. For example if there is a spike in commodities mutual funds values then we are well positioned to be able to take advantage of this, for our clients' mutual benefit. For any expatriates or Indonesian nationals we are well positioned to give advice and offer the best products for the time, depending on clients' needs.

We do not advise investment in any asset class unless we ourselves are attracted to the product, and trust and integrity are our central pillars. We start with a baseline of higher than expected value, and seek to build on that value day - by - day.

The Future of Commodities

The long term view for commodities is positive for a number of reasons and it should be noted that this year’s 20 per cent rally in commodities is being ascribed to temporary factors, including speculative short covering and stockpiling in China. Last year’s near 40 per cent pullback in commodities, though, should be viewed as a healthy correction in a secular commodity bull market.

Emerging Markets

Emerging Market Economies are likely to be the main driver for global recovery in the coming months and years. Emerging Market economies suffered greatly between 1997 and 2001, but the outcome of that crisis was that these economies have been paying down debt, increasing savings and building reserves. As a result of that structural economic strength and the stimuli now being applied to these economies, we expect the EM economies to act as the major driver of global growth over the coming decade. Most importantly, given the voracious appetite for commodities in these industrialising economies, demand for major global commodities should rise significantly. Already China’s consumption of copper has risen rapidly in 2009, as the fiscal stimulus plan and rapid lending growth combine to drive a recovery. Our long term demand forecast suggests consumption of key commodities by the Brics alone, especially China, will account for the majority of global consumption by 2020 as their economic growth remains rapid and becomes increasingly commodity intensive.

Quantitative Easing

Furthermore it’s likely that the monetary policy in the United States, of printing money (a.k.a. quantitative easing), based on 150 years of similar practices, (and also the purchase of $300bn of US Treasuries and $1,250bn of mortgage backed securities) is likely to result in inflation some time in the not-too-distant future. Commodities, as a physical asset, are a store of value and consequently a natural hedge against inflation, and should perform well in that environment.

Commodities Super-Cycles

As a final point regarding the future of commodities, a look into history and “super cycles” is appropriate. Both the recent two commodity super cycles experienced major pullbacks several years into their bull runs. Both times the pullbacks proved temporary and the upswing resumed. The corrections experienced were as a result of recessions and the scale of the downturns and also the timing, is very similar to what we saw from 2008 to early 2009.

First Advisory is able to bring a number of different commodities funds to market from our partners at Superfund (who manage extremely successful managed futures funds in commodities), and Zurich International.

100% Capital Protected Funds

The highlights in this space are a couple of funds, which not only offer 100% protection (one fund is a 5 year fund, the other 4 years, and their protection levels are at 95% and 100% respectively), they also offer 100% protection of profits for every 8% increment in the value of the funds. So in fact, if market conditions continue to improve as they have (the funds have both seen more than 8% gains since they were launched), an investor would see 108%, then 116% (and so on) protection on their capital.

More details: 5-year 100% Protected, and 4-year 95% Protected

Shariah Funds

Our Shariah Funds have been approved as compliant with Shariah concepts, and they offer better returns than cash under current conditions. High street local and multi-national banks currently offer interest rates at less than the rate of inflation. Our Shariah unit trusts are diversified in Shariah compliant ways that seek to constantly outpace cash offerings.

The Shariah fund seeks growth of capital whilst staying true to principles of Shariah. To achieve its investment objective, the fund seeks Australian investments that meet principles of Shariah to bring profit to the fund over the long term. The Shariah fund invests in Australian assets chosen by our Australian partners, in accordance with Shariah investment guidelines, to provide:

Profit to its unit holders relevant to the risk return of the fund, whilst staying true to Shariah principles;
An investment with a stable unit price, for investment terms of 36 months or longer; and
Income to investors across a range of major international currencies, with non-Australian dollar investments hedged against movements in the Australian dollar.

Portfolio of Mutual Funds

With our relationship with Zurich International, we are able to assist those who are looking to engage in mutual funds, with a large variety of offerings at differing levels of risk. Commodities mutual funds, among others, are showing signs of a revival. There are also a number of lower risk, sure-gain funds. We can put together a portfolio, and provide monthly reports. Zurich International funds are based offshore in the Isle of Man and as such they are capital protected.

Commercial Property

We are able to facilitate access to funds based on commercial property, with one mutual fund that has outperformed the market recently ( a distressed property fund), and another that works like a high interest fixed term bank account. The latter became very popular over the past 8 years, and is a great option for anyone who wants to put some money away for a term of 12 months or more, and receive higher rates of interests than most high street banks. Minimum investment is 5000 USD.

Offshore Banking

Expatriates living away from their home country need a solution for tax benefits, and moreover the offshore banking solutions available are convenient, online, and there are no extortionate monthly charges.

Other Partners and Representees...