Our own Investment Strategies illustrate the answer to this perfectly:

Caravel Partners adopts a 'core and satellite' approach for our HNW offshore investment strategies. They work like this.

1. There are four Strategies within the Diamond range:

• Preservation and Income
• Higher Income
• Balanced
• Growth

The core of each Strategy is a Strategy-dependent model portfolio, actively-managed and risk-based, from Pacific Asset Management in the City of London, FCA-regulated of course. PAM as of December 2024 manages £11.4 billion and acts as money manager for US/UK pension funds, banks and other institutions as well as for HNW clients world-wide.

Each of PAM's model portfolios are made up of ETFs, institutional funds (lower cost and unavailable to the retail investor) and other assets totalling 30-40 funds/bonds per model portfolio.

Its model portfolios are completely 'clean class': there is no cost to the investor on entry or exit; Caravel earns exactly nothing from placing our clients' money into the model portfolios and there is zero trail fee paid. This is crucial for our money management - we'll come to that shortly.

So - Professional London asset allocation, portfolio build, active management, no cost, superior performance against the ARC benchmark (a benchmark which correlates around 300 model portfolio managers worldwide).

The core PAM holding forms anything from 25 to 50-60% of each Caravel Strategy.

2. Satellite Assets

Around the core of the Caravel Strategies are place satellite, or non-core assets. These are extremely carefully chosen, to add performance boost, extra diversification and even non-market correlation. Those in each Strategy are risk-based in line with the Strategy. They should be robust in most market conditions. These assets might be specialist funds, private corporate bonds. For very large portfolios, very select assets can be included: we have access to hedge, currency and other funds which are usually available only to Private Banks in London or to Family Offices.

3. Money Management

Day-to-day management of the bulk of the portfolio is done in the City of London by qualified, professional and proven managers. At Caravel Partners, we have to look after the portfolio at the macro level: that means (for example, and it's a good one), another 2008. In that year, the industrialised world's markets fell by 45%, the stock markets of the developing world by 75-80%. This is why the 'clean class' model portfolios are so very important: in the event of a market crash or collapse, we can quickly and easily move your money from (say) the PAM Growth model portfolio to their Defensive or Cautious model portfolios, or even theoretically into cash. This means that your long-equity based Growth stance will have been immediately re-risked, saving you from the full force of the market crash or collapse. But (please note well!) you are still poised to move back to long equity as soon as conditions allow, so your investment can take advantage of the up-swing. This is effective money management. It does not involve day trading (the quickest way to lose everything); it does not involve being stuck is useless Structured Notes. It does involve an active approach when needed.

4. Starting Levels

The Caravel Diamond Strategies start at $100,000, although there is flexibility on this figure. For those with fewer financial means, we can facilitate for you an investment into the Pacific Asset Management model portfolios for a minimum of $10,000, with no satellite holdings.

5. Pleasant Surprise

We have available for you an Enhanced Investment Service, whereby the provider of the investment platform (Mauritius-based) provides a funded enhancement on each inflow, from a minimum of 3% to a maximum of 10%. This means that you invest $100,000 and your account will be credited with up to $10,000 to cover any costs, and to increase your investment purchasing power.

What can you use your enhancement for? What can you not do with the enhancement? You can:

• Pay platform charges
• Pay adviser charges
• Increase how much you can invest
• Create more liquidity

You cannot:

• Withdraw it as cash
• Transfer the cash or asset to another provider

The enhancement is recovered over a ten-year period. Contact me for more details.

6. Summary

We are proud of our Diamond Strategies and the superior service they bring our clients, equivalent to a Private Bank or Family Office.

London Wealth Management in Africa - it's not just words!

Benedict Carter

benedict@caravelpartners.net / +260 764 097 027