Response:
Let’s dot all the “i”s. Investing cannot be 100% successful and not all successful investments can bring 400% annual profit. Nevertheless, even the red ink operations will never lose on a large scale. We always set a certain loss limit. In case if such limit is exceeded the operation is cancelled. Let’s imagine the worst possible situation when the whole market has collapsed. In such case the Company’s losses will comprise only 5-7% and it won’t allow losses exceeding the agreed part of the capital. The remaining funds are invested in the government bonds of the USA, New Zealand and other European countries with a high interest rate. The interest rate on such bonds comprises 4.5 - 7% annually. This is a risk free investment, the profits on which are paid once a year and in a year you’ll get your money back. In the worst case (which is not likely to ever happen) you will lose only time, but not money. We are not going so-to-say “to put all eggs in one basket”. Diversification is the cardinal rule of investment. Some funds (after obligatory consent of the client) will be invested in highly-profitable currency instruments, the other part – in real estate transactions. A part of the assets can also be used for investment in the shares of Russian and foreign perspective and developing corporations. Various types of investments compensate each other.
All our activities are open for investors to review. In case an investor wants to check the success of our mutual investment, he can any time ask for a statement of investments in shares or high-liquidity currency instruments. The statement will clearly show all increases of the personal investment portfolio. In regard to real estate the situation is a little more complicated as in this sphere the pay-off happens with a greater time lag. This kind of investment cannot be observed on the hourly, daily or even weekly basis. Investments in such projects have long-term results.
We provide all information about our activities and it’s up to investors to make their own decision about transferring their funds for trust management to our company. Any and all investments are connected with risks! In this case investors have a guarantee that they are not going to be cheated. Their money will be used in compliance with the stated goals.
Financial markets are characterized with a high degree of uncertainty, that’s their nature. Due to this, profitability at different times will vary. Let’s say we invested funds for one year. In the first half of the year the deposit, for instance, will increase by 20% a month, other months by 40% and during the last two months by 10%. This is normal. The average profitability in these types of investments should not exceed 12% per month. This is the world standard. At the same time we can guarantee that the deposit will not decrease.
In case you need to urgently withdraw your money you can receive it, minus small operational expenses. You can check this. We do not ask you to pay a large sum upfront. You can decide for yourself how to invest your money. You could invest most of your funds in the bank, keep part in cash and use some to form an investment portfolio. A part of the share, which you allocated for investments, could be used for investments in unit investment funds. Investments in some unit investment funds can bring profits exceeding the inflation rate. Other unit investment funds can cause losses. Let’s say you have acquired shares of a large company and the market has started to decline. Major investment companies have great volumes of acquired shares. If in a falling market a company starts getting rid of shares (selling them), the market is going to fall even more and the unit investment fund clients will suffer tremendous losses. When in spring 2006 the Russian stock market was falling by 5-10% per day, the unit investment funds were running losses at the same level of 5-10% per day. But when the market earlier that year increased by 300%, the unit investment fund shareholders got only 70% per year.
The activities of Compass Group in general exclude the possibility of losses comparable to those of unit investment funds shareholders. Compass Group can guarantee that its clients will never find themselves in a similar situation. The investment procedure and profit distribution is initially prescribed by the contract and cannot be changed unilaterally.