WEALTH MANAGEMENT - S5 (25th Nov 2023).pptx

WEALTH MANAGEMENT Sheikh Zayed Islamic Center 25th Nov 2023 Syed Muhammad Yaseen Ali Trainer Profile   Experience:  Bank Alfalah Islamic – Product Development  Soneri Bank Mustaqeem  Mashreq Bank UAE  Sheikh Zayed Islamic Centre / NIBAF / IBA  Faysal Bank Barkat  Meezan Bank...

WEALTH MANAGEMENT Sheikh Zayed Islamic Center 25th Nov 2023 Syed Muhammad Yaseen Ali Trainer Profile   Experience:  Bank Alfalah Islamic – Product Development  Soneri Bank Mustaqeem  Mashreq Bank UAE  Sheikh Zayed Islamic Centre / NIBAF / IBA  Faysal Bank Barkat  Meezan Bank Education: ACCA, CSAA, PGD (IBF-CIE), CIFE-UAE) Outline  Real Assets  Hedge Funds Real Assets  Real Estate  Infrastructure  Natural Resources Real Estate  Investments indirectly in buildings or land directly or (When you have enough money)  Securitization has broadened the definition of real estate investment and it now includes  Private Commercial real estate equity e.g. ownership of an office building  Private Commercial real estate debt e.g. directly issued mortgages on commercial property  Public real estate equity e.g. real estate investment trusts (REITS)  Public real estate debt e.g. mortgage-backed securities (MBS) Natural Resources  Commodities: Investment in physical assets such as grains, metals, crude oil etc. (Good for inflation)  Commodities investments can be done either owning physical assets using derivative products or investing in business engaged in the exploration and production of physical commodities.  Agricultural land (or farmland) Investments in land used for cultivation of crops or livestock. Income can be generated from the growth, harvest and sale of crops or livestock; or by leasing the land back to farmers.  Timberland: Investments in natural forest or managed tree plantations. The return comes from Infrastructure  Investments in capital intensive, long-lived, real assets such as roads, dams and schools, which are intended for public use and provide essential service.  A common approach to infrastructure investing is a public-private partnership (PPP) in which both the government and investors have a stake. Others  Investment in any other tangible assets such as art, stamps, coins, etc. or intangible assets such as patents. Hedge Funds  They are private investment vehicles that manage portfolios of securities and derivative positions using a variety of strategies. (For instance long and short)  Some hedge funds aim for absolute returns independent of market performance. (it is generally independent to market performance whether the market goes up and down i.e. by going long and short) Methods of Investing (3 methods)  Fund Investing: Investors contributes capital to a fund and the fund makes investments on the investors’ behalf e.g. investments in a PE fund.  CO-investing: The investor can make investments alongside a fund e.g. investments in a portfolio company or a fund. In co-investing, the investor is able to invest both directly and indirectly in the same assets.  Direct Investing: The investor makes a direct investment in a company or project without the use of an intermediary, e.g., direct investment in infrastructure or real estate assets. Investor Fund Investing Investme nt Fund Investme nt 1 Investme nt 2 Investme nt 3 CoInvesting Investme nt 3 Direct Investing Investme nt A