Alternative Investments Review March 2013


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March 2013 review of the alternative investments markets compiled on behalf of London Commodity Markets.

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Alternative Investments Review March 2013

  1. 1. 2013 LCM Alternative Investments Review March 2013 The LCM Alternative Investment News Review is a monthly report compiled for London Commodity Markets to provide a snapshot of the alternative investment markets. March 2013 London Commodity Markets 3/26/2013
  2. 2. Osborne abolishes stamp duty onAlternative InvestmentsThe government will abolish stamp tax on shares for companies listed on growth markets,including the London Stock Exchange’s Alternative Investment Market and the ISDX GrowthMarket, from April 2014.In scrapping the Aim stamp duty tax,Chancellor George Osborne said in his Budgettoday (20 March) he is aiming to help smallerquoted UK firms by lowering their cost capital,helping to promote jobs and growth across thecountry.Mr Osborne said: “Many medium sized firmsand start-ups use the Alternative InvestmentMarket to raise funds to help them grow.Many observers of the British tax system complain that it has long biased debt financing overequity investment.”He added: “In parts of Europe they’re introducing a financial transaction tax. Here in Britain,we’re getting rid of one.”On 13 March 2013 the Government launched a consultation on extending individual savingsaccount (ISA) eligibility to include a wider range of small company shares.Source: www.ftadviser.comThe Chancellor also announced proposals to introduce a new tax incentive to encouragefurther investment in the exploration and extraction of shale gas industry, which willeffectively reduce the tax rate for some shale gas production from 62% to 30%.FSA Releases Alternative Investment Fund Managers Directive(AIFMD) Regulatory SurveyLast week, the UK Financial Services Authority (FSA) published a survey for UK-basedalternative investment fund managers (AIFMs) to help AIFMs comply with the requirements ofthe Alternative Investment Fund Managers Directive (AIFMD). The deadline for transpositionof the AIFMD into UK law—and the laws of all other member states of the European EconomicArea (EEA)—is 22 July 2013, and the UK government and FSA fully intend to meet thatdeadline. Read more: www.natlawreview.comPage | 2
  3. 3. Insurance Company Increases Agricultural InvestmentsUS insurance company MetLife Inc indicated that it increased its agricultural investmentbusiness by more than 7% in 2012 compared to the previous year. With an agriculturalmortgage loan portfolio of approximately $13 billion at the end of 2012, MetLife contends itremains a top lender to agriculture.Agricultural mortgages provide MetLife with investment opportunities that match the long-term liabilities the company writes through its insurance products, explained Robert Merck,global head of agricultural investments for MetLife.The company’s portfolio consists of farm and ranch, food and agribusiness and timberlandmortgages. “We think 2013 will offer substantial opportunities for agricultural mortgagelending. Our 96-year track record of investing in the agricultural sector and our commitment tosuperior customer service will help drive our success this year and beyond,” said Merck.Through its subsidiaries and affiliates, MetLife holds market positions in the United States,Japan, Latin America, Asia, Europe and the Middle East.Source: metals: Silver’s versatility adds to its attractions Spread betters have turned to silver in recent months in the hope that “the poor man’s gold” will experience a price rise soon. Capital Spreads said that the percentage of buy positions placed on silver far outweighed those placed in gold. “Our clients believe that silver is the one to bet on,” says Angus Campbell, head of market analysis at Capital Spreads. “Clients are seeing far morepotential upside from the minor relation.”Experts believe the renewed interest in silver is partly due to the fact that the precious metalhas many industrial purposes, alongside the fact that it is yet to really catch up with gold.Read more:“We are seeing a tremendous impact on investor interest on precious metals”Philip Klapwijk, Global Head of Metals Analytics for Thomson Reuters GFMS in London,November 2011Page | 3
  4. 4. New Venture Offers Unique Opportunity in Diamond InvestmentsPink Iguana PLC, a new venture specialising in the trade of certificated diamonds with a strongmarket value, has been founded by Jan Maarten Asscher, a member of one of the mostfamous diamond families in history, and Mark Walker, a leading diamond and jewellery expert.The company represents a unique opportunity forinvestors to participate in realising the significantpotential returns achieved by trading in diamonds.The Company will trade in polished, certificateddiamonds and will operate its business under theguidance of diamond trading experts, supplyingdiamonds to a wide variety of UK and internationalcustomers.Investors will benefit from an asset class which haslimited supply and increasing global demand.Polished diamond prices have increased by at least 100% since 2004 and this looks set tocontinue.Sources: Earth Metals Junior with a Bright FuturePeak Resources, an Australia-based firm focused on fast tracking the development of its 100-percent-owned Ngualla rare earth elements project in Tanzania, has attracted increasedinvestor attention of late. Peak’s strategy for growth is to rapidly develop Ngualla intoproduction via lower capital costs and to establish itself as a lower-cost quartile, long-termproducer of clean, high-purity rare earth products.Bill Aimed at Securing Rare Earth Supply Reintroduced toCongressThe Resource Assessment of Rare Earths (RARE) Act of 2013, a bill aimed at securing rare earthsupplies and reducing China’s monopoly on the market, has been reintroduced to US Congressby Representative Hank Johnson. The Act directs the US Geological Survey (USGS) to conduct athree-year global mineral assessment of rare earth elements (REEs).“Like President Obama, I am committed to a future powered by clean energy,” said Johnson ina statement. “Without secure access to rare earth elements, we will be unable to lead theworld in cleantech. The RARE Act will dramatically advance our ability to access rare earthsworldwide.”Sources: http://rareearthinvestingnews.comPage | 4
  5. 5. About London Commodity MarketsWith over a century of combined experience in the rare earth elements and alternative investmentsmarket, our team at London Commodity Markets have a proven track history of delivering excellentconsultation as well as an unrivalled service to all our clients.As a result of this unrivalled standard of service, quality advice and ethical approach to themarketplace, London Commodity Markets have become the globe’s fastest growing rare earthelements and alternative investments company. HEAD OFFICE Citibank Tower, 25 Canada Square, Canary Wharf, London E14 5LQ Tel: 00 44 (0) 203 514 6000 / Fax: 00 44 (0) 203 514 6001 Email: Home Counties Office Suite 1A, Park Street, Maidenhead, Berkshire SL6 1SL T: 00 44 (0) 203 393 3176Disclaimer:This document is issued by London Commodity Markets for the sole purpose of assisting the recipient in deciding whether to proceed with further analysis of this potentialproject and opportunity. The information in this document is general and informational only and is not intended to constitute professional or investment advice, or to beconstrued as an offer or solicitation for the subscription or purchase or sale of any securities, or as an invitation, inducement or intermediation for the sale, subscription orpurchase of securities. This document does not take into account the recipient’s particular investment objectives or financial situation. Before making any investmentdecision, the recipient should conduct its own investigation and analysis of the project, as well as any data, pricing and projections described herein. London CommodityMarkets does not give any warranty or representation as to the reliability or accuracy of the information contained herein, nor does it guarantee that the stated pricing andprojections will be available to the recipient.London Commodity Markets are neither registered nor regulated by the FSA, and are not authorised to carry out regulated activities. All markets relating to Rare EarthElements, Oxides and Metals are not regulated by the FSA, and as such anyone investing in these markets would not have access to the Financial Ombudsman Service (FOS) orFinancial Services Compensation Scheme (FSCS).The information contained herein is for information purposes only, and is not intended for trading purposes or deemed to be investment advice or constitute a service.London Commodity Markets, directors or any of its staff, agents, creators and administrators of website shall not be liable for any errors ordelays in the content of these pages, or for any actions taken in reliance thereon. As with any Investment there is a risk of losing money. Rare Earth Products are alternativeinvestments and such should be regarded as high risk.LONDON COMMODITY MARKETS IS NOT REGULATED BY THE FSA OR SEC.Page | 5