To generate a high level of interest income with minimal volatility and low correlation to most traditional asset classes by investing in debt obligations of motion pictures and series television productions.
Strategy Type: Income
Launch Date: September 2, 2011
Lead Portfolio Strategist: Clayton Smith, CAIA
Why This Strategy?:
The second fund in our short term alternative fixed income fund series, we created the Crystal Wealth Media Strategy to complement our Mortgage Strategy as a response to the desperate client need for a relatively high and consistent rate of return with a low probability of losing money. We spotted an opportunity in the fragmented financing market of movie and television production and teamed up with Media House Capital Corp, a leader in the worldwide media production industry, to create a mutual fund that provides an incredible opportunity for investors to earn a significantly higher rate of return than they can on other short term debt instruments such as GICs, Term Deposits and Bonds with very minimal risk of downside. We expect returns going forward will continue to be in the 8 - 10% annual range, although this is not a guaranteed return and mutual fund returns do fluctuate.
What We Love About This Strategy:
- Steady, reliable, relatively high return
- An asset class that is simple to understand and non-correlated to general markets
- Fund’s success is not dependent on the commercial success of the underlying movie or TV show
- Last money in, first money out lender provides maximum security
- Profit participation on each project could result in major upside potential
- Exclusive asset class not available through other investment managers
Our Partner on This Strategy:
Media House Capital Corp sources potential investment loans for the strategy, completes initial due diligence on each project and administers the loans once the strategy has invested.