Cygnet Financial ServiceCygnet Financial ServicesInvestment Proposal Business Plan
EXECUTIVE SUMMARYCYGNETS strategy will be to source investment funds from private funders.CYGNET aims to operate in the commercial and industrial property sector.Investor funds will be lodged in an Investment Account with Deloitte &Touche and KPMG.CYGNET will source properties for development and re-investment and willoperate the Administration Account.This is done on a call off from the Investment Account, and is subject toextensive viability and due diligence checks and balances.All profits and returns on investments and sales will be held in a DistributionAccount and paid to investors as per instructions held.Technological advancements also permit for other economically feasibledistribution channels, such as separately managed portfolios for largeaccounts.
COMMERCIAL PROPERTY VALUES WILL INCREASE IN A VOLATILE ECONOMYCYGNET will offer high net worth investor’s opportunity to maximizeprofits and a capital growth element in exchange for contributions toCYGNET’S operating capital and for providing seed funds to establish theinvestment products described herein.This document alone does not constitute an offer of any type, nor does itprovide any guarantee, financial, or otherwise.Risks associated with the CYGNET FINANCIAL SERVICES business planare not limited to those detailed in this document.
COMPANY SUMMARYCYGNET FINANCIAL SERVICES is structured as a Close Corporation,incorporated in the Republic of South Africa. It has been designed tocapitalize on property industry research performed by one of the foundingmembers, Sagren Pillay.This company is unique because it differs substantially from the way mostexisting investment management firms operate. Many of the firms createdin the last 15 years were started by the departure of portfolio managersfrom the countrys largest banks, insurance companies, and brokeragefirms. Generally, these individuals were deep in investment managementbut novice as it concerns the business and operating side of running anorganization. The investment plan for CYGNET is different.CYGNET has been founded by managers and entrepreneurs with in-depthknowledge of all aspects concerning property investment organizations.Professional talent will be acquired and retained by offering keyindividuals and professional service companies’ competitive compensationto include equity stakes.
WE BELIEVE OUR PROCESS WILL BE SUCCESSFUL IN THE FUTURE FOR THE FOLLOWING REASONS:1. It provides the opportunity to outperform the market without taking undue risks, whilst having ownership.2. It does not concentrate heavily in a narrow segment of the market (e.g. residential, agricultural), thus portfolios are more likely to maintain a stable performance base when certain areas rotate out of favor and prompt redemptions.3. It simplifies investors portfolios by reducing the number of managers or funds they need in their overall property allocation.4. As in most cases, investment opportunity at ground level (development projects) will generally allow the investor a far greater return on their investment in a shorter period.5. Capital growth is taxed at lower rates than normal profits.
SALES STRATEGYCYGNETS property investment portfolio will be initially offered through anFSB registered administration fund.Technological advancements also permit for other economically feasibledistribution channels such as separately managed portfolios for largeaccount sizes.Based on our large, medium and small cap projects, revenue streams willbe continuous from year 3. Ideally, clients should look to invest in themedium to long term to maximize profitability and returns.CYGNET generates its revenue from Administration Fees for servicesrendered on behalf of its clients.The chart and table below provide a more detailed look at our projectedsales strategy.
COMPETITIVE EDGECompanies are nothing but men and women and their work. That whichcomes forth from a company is only as fine as the effort put into it.‘A customer is a person who brings us his wants-it is our job to fulfillthose wants.The above quotes reflect the philosophy and ethos of CYGNET.Only by fine effort and effective control will we accomplish and attain ourgoals and those of our investors.CYGNET will centralize and standardize all property management systems,controls, responsibilities and personnel.Unlike other investment companies who generalize and pay dividends toall clients in their portfolios, we will strive to manage each client on apersonal basis, and to maximize returns for each and every client.
MARKET STRATEGYCYGNET is based in Kwa-Zulu Natal and has excellent local knowledge ofmarkets, trends and development nodes in the region.Our initial focus will be to invest locally, before expanding into otherregions. This will only be done via thorough market analysis and projectplanning.We will utilize our website to find investment properties and opportunities,as well as to market our portfolios.We are registered with the Debt Control Council.The Estate Agency Affairs Board and will register with the FinancialServices Board, to ensure legal compliance.We will charge an Administration Fee to our clients based on investmentlevels. Fees will approximate 1, 5% of investment.
MILESTONESCYGNET will strive to have projects in place and capitalization of R 2, 3billion by 2015.This is a bold plan, but is highly achievable given the available projectsand infrastructural changes that are being effected in South Africa.We have attached Large, Medium and Small Cap targets as per our initialmarket analysis.
MANAGEMENT SUMMARYCYGNET has compiled a management team, and will employ candidatesfor other key positions, should it be required.We would prefer to use outside consultants and professional teams on aproject basis, and according to each entity’s specific strengths.Sagren Pillay is the managing member of the corporation.Sagren has been involved in company management for the past fifteenyears.David Larkan is a registered and practicing accountant. David graduatedand was articled with KPMG, prior to going into private practice.He also holds a CEA qualification. David has been in the accountingprofession for the past 22 years and in the property industry for sevenyears.
Cygnet Financial Services CC Reg no; 2006/014207/23397 North Coast Road Tel no: +2731) 5649939 Fax no: +2731) 5639529Briardene G mail: 0867330872Durban PO.BOX 37314001 DurbanEmail: Cygnetdebt@telkomsa.net 4001Email: email@example.comVat no; 4680231810 DCCC no; 0016178/06