Leveraged Asset Allocation

by | Dec 10, 2012 | Archives

Leveraged Asset Allocation can increase asset protection, enhance profits and income production in savings and investment portfolios.

Low interest rates in many currencies offer perfect Multi Currency Sandwich opportunities.

gary and thomas studio2

Gary Scott & Thomas Fischer discussing leveraged asset allocation on Danish TV.

For example this creates a way to invest smaller amounts with greater profit potential through Jyske Global Asset Management.

A basic part of JGAM’s service is to offer three main platforms of asset allocation.  The platforms are low risk, medium risk and high risk.

JGAM also offers low interest multi currency loans and over the past several years have noticed that leveraged low and medium risk portfolio outperformed non leveraged high risk portfolios.

Based on this fact JGAM added an interesting new way to attain asset allocation positions using leverage that increases performance potential and reduces the minimum amounts required.

The basis of a platform is normally the balance between fixed income and equity positions.  For example currently JGAM’s low risk portfolio has 53.19%  of the investments in fixed income and only 24.92% in equities.  The medium risk portfolio has 25.56% in fixed income and 42.88% in equities.

Bumping Up Platform Performance

In JGAM’s leveraged asset allocation, investors can keep a low risk portfolio but bump up the potential profit (and risk) by doubling the portfolio wth a low cost loan.  The loan by the way is automatic if requested. The portfolio IS the collateral so credit ratings are not a consideration.

Here is the JGAM Low Risk Portfolio bumped up to Medium Risk with higher profit potential by doubling the size of the portfolio with a one time low cost loan.

Jgam medium risk

Click on photo to enlarge.

You can then enhance the profit potential (with additional risk) by leveraging the medium portfolio one time with low cost loans.

JGAM LOW-High Risk

Click on photos to enlarge.

JGAM LOW-High Risk

The JGAM medium risk portfolio with one time leverage.

If you prefer equities to income producing investments you can tweak the performance by bumping up a low cost portfolio with a two times loan.

Jyske Portfolio 2 times leverage

This portfolio has the highest risk and greatest profit potential with two times leverage.

Reduced Minimums

These leveraged portfolios are classic Borrow Low – Invest High multi currency sandwich positions that reduce the original amount needed to invest.

$200,000 is required as a minimum investment so it requires only $100,000 original investment plus a $100,000 loan to attain the $200,000 portfolio.

If one leverages the assets twice then only about $70,000 original investment is needed with a $130,000 loan to reach $200,000.

This leverage means that a $70,000 has similar earning capacity to a $200,000 portfolio.  All that is lost is the loan cost… currently very low and minimal loan fees.

Multi currency loans provide investors suffering from low interest rates to take advantage of this trend and borrow low to invest high.

You can get more details on current interest rate and loan costs for US Investors from Thomas Fischer at fischer@jgam.com

Non US investors have slightly different services and details are available from René Mathys at mathys@jbpb.dk

Our report Borrow Low – Deposit High shows how to use Multi currency loans to manage risk and enhance profits.

Order Borrow Low – Deposit High, Multi Currency Report here $79.

Learn more about “Borrow Low – Deposit High”.

I would like to do a Question and Answer on using low costs loans to allocate assets so if you have questions, please send them.


Join us for our Super Thinking + Investing & Business Seminar, February 1-2-3 in Mt. Dora, Florida.  Meet Thomas Fischer with Jyske who discuses to to leverage asset allocation with low cost loans.