RECENT MARKET VOLATILITY - Why Alternative Investments Outshine Traditional Markets
12th August 2024
In an ever-evolving financial landscape, traditional investments like equities and bonds have long been the go-to options for many investors. However, in times of market volatility, such as we have experienced recently, these conventional paths can become less attractive due to unpredictable returns and economic uncertainty. SAINT has always championed alternative opportunities, and recent updates from two of our key partners—London Richmond and Woodville Litigation Fund—underscore why these options are often more resilient and rewarding, particularly in turbulent times. See the summarised update below.
For investors seeking to navigate market volatility while securing reliable returns, alternative investments represent a strategic and resilient choice. We invite you to contact us today to learn more about London Richmond, Woodville Litigation Fund, and other exclusive opportunities we offer to meet your varying requirements and risk appetites.
London Richmond: Consistency and Growth in Real Estate
London Richmond has consistently demonstrated the attributes that make alternative investments so compelling. The company’s track record and business model are exemplary, highlighting why real estate remains a cornerstone of alternative investing.
- Proven Profitability: London Richmond has developed 22 projects, each yielding significant profits, with some exceeding £1 million. This financial health is more than adequate to cover investor coupons, capital, and operational costs, ensuring consistent returns.
- Reliable Payment History: With over £10 million in loan capital repaid and 18 rounds of on-time coupon payments, London Richmond has shown a strong commitment to its investors. This consistency is a hallmark of stability that is often missing in more volatile markets.
- Stable Investment Environment: Operating in London, one of the world’s most stable and secure real estate markets, London Richmond’s strategic location further mitigates risk, making it a safer bet compared to more volatile equity markets.
- Established Track Record: Since its inception in 2019, London Richmond has maintained a perfect record of on-time payments, further reinforcing investor confidence.
- Transparent Financials: The company’s increasing profitability is publicly verified through year-on-year published accounts, adding another layer of assurance for investors.
In summary, London Richmond’s ability to deliver consistent returns, even during economic uncertainty, makes it an attractive alternative to traditional investments. The company’s focus on the stable London real estate market, combined with its transparent and profitable operations, underscores why SAINT favors such opportunities.
Woodville Litigation Fund: A Beacon of Stability in Legal Finance
The Woodville Litigation Fund offers another compelling example of the benefits of alternative investments. Specializing in litigation funding, this provider has seen exponential growth and zero defaults—a rare achievement in any investment category.
- Robust Loan Book: With a loan book valued at £134 million and over £100 million in loan capital returned to investors, Woodville has demonstrated an ability to generate substantial and reliable returns.
- Zero Defaults: The fund’s track record of zero defaults and 849 coupons paid in July alone is a testament to its risk management and operational excellence.
- Growing Market: The UK legal sector is expected to hit a turnover of £50 billion in 2024, with corporate law particularly resilient. As litigation funders are critical to this sector’s growth, Woodville’s position is only expected to strengthen.
- Rising Demand for Fixed Income: Amid recent market turbulence, investors are increasingly turning to fixed income investments. Woodville’s secured, income-producing opportunities have attracted over 4,000 clients in just the past six months, further proving the demand for stable alternatives to equities and bonds.
Woodville’s success in the legal finance sector provides investors with a secure and growing income stream, even when traditional markets are unpredictable. The fund’s impressive track record and strategic market positioning make it an ideal choice for those looking to diversify away from the volatility of stocks and bonds.
Conclusion
The recent successes of London Richmond and Woodville Litigation Fund highlight why SAINT continues to advocate for alternative investments, especially in uncertain economic times. While traditional investments like equities and bonds can offer good returns, they often come with higher risks and volatility. In contrast, alternative opportunities such as real estate and litigation funding provide stability, consistent income, and growth potential, making them an essential part of a well-rounded investment portfolio.
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