One of the basic questions for any form of strategic investment is: what investment strategy earns the highest return at the lowest possible risk? Our return portfolio is the answer to this question. A combination of earnings plus income in the form of dividends ensures the investor receives a solid base return – plus the upside price potential for the earnings-oriented securities. A classical dividend strategy that experts generally consider to be a highly conservative approach. The secret lies in the harmonious construction of the portfolio, a strategic combination that requires highly active fund management. Based on careful monitoring of the markets and overall conditions, Timberland Funds invests the return portfolio in four top funds with sustainable investment strategies issued by the companies DJE, Carmignac and DWS.
From our years of experience, we know that every movement has a purpose. And the Timberland secure portfolio is managed in this Aristotelian sense by our active fund management. The complexity of financial markets makes it necessary to have more experience, vision and accuracy than ever before. And we even add a good measure of soundness and creativity to the mix, because we feel that standard inflexible solutions are simply not solutions at all. Creativity is therefore the only standard used in our fund management. Using this active philosophy, we identify alternatives in the bond market for our investors that simply generate more interest on invested capital, while still satisfying the fundamental need for security.
Solid covered bonds and bonds from first-class issuers are among the possibilities we focus on. These benefit investors by providing a high level of security while offering significantly higher returns, as only covered bonds and similar securities do. As generally recognised, they make an intelligent addition to the mix. Our secure portfolio therefore consists of covered bonds, together with term deposits at German credit unions, German savings banks and Luxembourg banks, all of which are covered by deposit protection funds.
Investing part of your wealth in gold is lucrative and introduces a good measure of security into a portfolio in times of volatility. Admittedly, this is not a particularly new discovery. For thousands of years – through crises, wars and disasters – people and markets have considered gold to be synonymous with high stability and soundness. The price of gold has benefited from economic and political uncertainty often enough to create a high level of confidence in its value. One reason is that the supply of gold cannot be arbitrarily increased. Another is that it is subject to practically no credit risk. For these reasons, gold can complement return-oriented portfolio management by adding a stable real asset. And as investors often already have a large number of securities in their portfolios, an investment in gold is best made in the form of physical gold. This allows the precious metal to fully exploit its strengths as an inflation hedge and crisis currency.
Timberland investors benefit from exceptionally fair purchasing terms. Since we buy gold exclusively from producers, no margin is paid to intermediaries. The gold is insured and then held separately in safekeeping by the custodian bank. It is protected from issuer default and can, if desired, be delivered to investors in physical form.
