27 February 2023

Thinking about investing this year?

If you are thinking about investing for the first time this year, how should you get started to make smart decisions and generate meaningful returns? What are some of the do’s and don’ts for the first time investor who might have received a lump sum payment, for example?

If you are a first-time investor, there are some important do's and don'ts that you should keep in mind. To start, it is crucial to educate yourself on the different investment options available and seek the advice of our experts to guide you in your decision-making process. Understanding your risk tolerance, having a clear idea of your investment goals and time horizon is also key.

It's important to remember that investment returns take time, and you should set reasonable expectations and be patient with the process. Avoid the temptation to make impulsive decisions based on short-term market fluctuations.

Finally, diversification is critical to minimize risk and improve returns. Once you have selected your investments, it's essential to stick to your original plan and avoid making sudden reactions to market volatility. With careful planning, thoughtful decision-making, and a long-term outlook, first-time investors can make smart investment decisions and achieve meaningful returns.

How would you describe the international outlook for investments this year? What are some of the opportunities on the horizon?

International markets will remain volatile this year. The markets started the year strongly following news and even prior to the announcement of re-opening in China. The main beneficiaries of this setup were Europe equities and China equity markets. The weaker greenback was also supportive of these gains on the international scene. However, latest news indicate that 2023 will be volatile and that the early gains may be short-lived. The US job market proved to be strong with unemployment at a 53-year low. This changed market forecasts about an imminent interest rate easing by the US Federal Reserve. Since a few days, following the change in market scenery, the dollar has been on the up, and this has caused a sell-off in the markets.

At SWAN Capital Solutions, we think that, going forward, the current context is propitious for an economic slowdown, which should weigh on corporate earnings of top companies, thus impacting the the outlook for the equity markets. We think that the next few months will be quite volatile and that we should wait until June 2023, by which time we expect the Fed to adopt a less hawkish tone. Currently, the opportunity lies within the fixed-income market, specifically within the top-notch Investment Grade universe, whereby a yield of close to 5% can be expected for a 1-yr to 10-year maturity.

Can you outline the different options for investing with SWAN Capital Solutions? What is the best way to get in touch with SWAN Capital Solutions to find out more?

At SWAN Capital Solutions, we provide a range of options for individuals looking to diversify their portfolios and expand their wealth. We recognize that each person's investment objectives are unique, and thus, we take the time to understand our client’s investment goals and individual situations before developing a tailor-made plan. Our customized plans consider a series of risk factors, enabling our clients to make informed decisions that align with their goals.

We manage five international funds, available in MUR, USD, EUR, and GBP, with a starting investment of MUR 25,000.

For those looking for short-term solutions, our SWAN Dollar Liquidity Fund was created with the view to accommodate the liquidity need of retail and institutional investors over the short-term whilst maintaining low volatility and providing a positive USD return. The fund has a minimum investment of USD 25,000 and is a remunerating alternative to cash at hand or idle cash with the ability to withdraw with daily valuation.

For those looking for medium-term solutions, our SWAN Income Fund is geared towards fixed-income investments to generate stable return and regular income and to provide opportunities for capital growth. With a return in USD, the Fund provides a conservative investment with stable income and a gateway to grow income internationally. There is a dividend distribution twice a year (depending on the performance of the fund and local legislation) and the minimum investment is MUR 50,000.

For those looking for long-term solutions, we offer the equity funds, with a minimum investment of MUR 25,000. The Swan Foreign Equity Fund and Swan Emerging Market Fund are both well-diversified across countries, sectors, currencies, and investment styles.

  • Foreign Equity Fund seeks long-term capital appreciation by investing primarily in developed equity markets.
  • Emerging Market Fund is geared towards investors who seek to tap into the growth stories of emerging equity markets over the long-term, with an ability to withstand market fluctuations over the short-term.

For sophisticated investors looking for something more exclusive, we also offer the Swan Global Private Equity Fund, a feeder fund of Schroders GAIA II Global Private Equity. The fund provides access to exclusive top-tier private market deals sourced globally.

At SWAN Capital Solutions, our experts provide all the support and advice needed to make sound financial decisions. Contact us on 203 4600 or send an email to info@swancapitalsolutions.com for more information.

We look forward to helping you to reach your investment goals with SWAN Capital Solutions.