Very soon into a recent trip to Zimbabwe, it became apparent that the economic landscape had somewhat deteriorated since my previous visit only 6 months ago. Newly-introduced and highly restrictive exchange controls, the proposed printing of Zimbabwe ‘bond-notes’ (essentially re-introducing a local currency), along with restrictions on daily cash withdrawals – and that’s if there’s any cash in the machine to start with(!) – are just some of the challenges facing Zimbabwean residents in their daily lives. On a more positive note, I was once again struck by the resourcefulness, adaptability and determination of the people I met during my trip.
It was only some 40 odd years ago that, as Rhodesia, Zimbabwe was the breadbasket of Africa, exporting wheat, tobacco, and corn to the rest of the continent and beyond – more importantly providing bountiful produce and enabling a thriving business environment for the mass producer and local street vender alike by creating an efficient market of buyers and sellers. Zimbabwe is said to contain the most fertile farmland on the African continent, to that end it could potentially become its ‘breadbasket’ again – it has the land and resources to do so. Nevertheless, this would require external investment along with adopting a ‘new’ economic model; until then, the general lack of market liquidity, with banks short of funds, capital and deposits will unfortunately continue.
This all got me reflecting on not just the key long-term benefits of asset class diversification (which we have written about previously in these weekly comments); but also the ever-increasing need to diversify one’s wealth. Importantly, not only through differing asset classes, but also across reputable/regulated jurisdictions and utilising more than one wealth manager and/or advisor – purely for the ‘peace of mind’ that whether it’s for your future pension pot, inheritance planning or wealth generated through business transactions the assets are protected for future generations.
At MitonOptimal we offer regulated investment advisory services from reputable jurisdictions in a variety of forms for a broad range of clients – from “wrap” solutions on individual platforms, through both proprietary and white-labelled managed solutions through to segregated bespoke portfolios – all in multi-currency form. We do this by working closely in partnership with professional Trustees, regulated brokers & advisors and other financial service specialists, enabling their clients to gain access to ‘holistic’ investment solutions that are tailored to their needs for today and tomorrow.
Quite simply, diversifying your assets/wealth is the only free lunch in investing – it is the only way to reduce investment risk without compromising on your expected returns.
And by spreading your assets out across the entire investment landscape (utilising transparent, well-regulated jurisdictions), you increase your odds of achieving the only investment objectives that really matter; protecting and enhancing your wealth for the future.
All your eggs in one basket… A recipe for DISASTER !