What still applies?
The reduction of the REPO rate and thus also the reduction of interest on savings accounts continues. Now the REPO rate is 4.25% and it still makes sense to think about bond funds, see the previous article: https://www.ladislavhintnaus.cz/duben-2024
DIP
If you have a DIP product (long-term investment product) and want to take advantage of the maximum tax deduction, I recommend checking whether your deposited amount for 2024 will be CZK 48,000. If not, you can send this missing money until the end of 2024.
Investment opportunities
From October to December 2024, it will be possible to buy a share in the fund of qualified investors Rhapsody III of the APS group. As the triple in the name suggests, APS already has two such releases.
The investment objective of RHAPSODY III is to achieve long-term above-average returns by investing in sets of receivables and/or problem assets through the provision of capital for their acquisition and/or in secondary assets in the form of provision of secured special-purpose loans using temporarily free financial resources of the Subfund.
What does it mean in normal language? Banks are getting rid of packages of receivables that are already mildly delinquent due to regulatory capital requirements at a fraction of their price - because it is not worth it for them to collect them. And the managers of the Rhapsody III fund buy these receivables "at a discount" and then collect them themselves.
This is a very interesting business and the APS group, which is one of the largest of its kind in Central Europe, is an experienced and skilful administrator of receivables. Historically, it has already purchased receivables for more than 11 billion euros. He has been in the field for 20 years and has long-term cooperation with large institutional investors.
Thanks to the chosen strategy and the historical success of the group, above-average return of the fund can be expected in the long term.
An indisputable advantage of the Rhapsody III fund is diversification. Due to the planned number of loans and countries of operation, this is certainly higher than for funds of qualified investors based on only one company with operations and capital located in one country.
Expected appreciation: 12 - 14% per year
Investment horizon: 5 years
Fund HOPLON INVESTMENT PARTNERS
The fund buys at a discount the bonds of some highly indebted European companies with a quality product. Thanks to a proactive approach in solving the company's debt situation, very attractive returns are offered.
Yield in the range of 10%-15% p.a.
Investment horizon: 6 years
I recommend watching the video here:
https://www.siriusis.cz/#distressed
In case of questions and arrangements, do not be afraid to contact me.
