...good Investments based on Security
Transparent collaterals like Grade-A ship mortgages or oil stocks, and risk-optimized interest rates of between 3.5 and
8 % are typical for our risk decoupled investment products.
The design of our investment products strictly complies with the requirements each target portfolio has. Product variations are secured within the range of a simple collateralization up to a collateralization which meets Solvency 2 requirements; nevertheless, entrepreneurial elements can be designed into the investment structures as well.
Investment Model & Investment Products:
"Northern Invest Shipping Portfolio I & II" Investment Products
The proceeds of these investments are used to provide working capital for shipping companies. The 5-year term investment generates a constant return - between 4.25 % and 5.75 % p.a. - for the investor.
The working capital and with it the investors are secured by Grade-A ship mortgages. The returns for the investors and the repayments of the investment at the end of the term are moreover nearly completely secured by further conceptional features. The investment limit ranges from 50 % of the vessel's scrap value (Portfolio I) to 50 % of its market value (Portfolio II). The level of interest principally depends on the quality of the collateralization.
"Oil and Gas" Investment Model
Since 2007 Northern Energy Invest (our subsidiary) has been initiating successful investment projects in US oil and gas production rights. One that has already proved itself is a capital market product (asset-linked note with an international securities identification number) which invests in raw materials such as oil. Another highly recommendable structure to invest in the oil-gas market is a tax and return optimized investment model of a German KG vehicle. Both investment models can be designed to have stable annual returns.
Although a higher exposure to risk leads to higher returns, investors tend to prefer investment models that manage price risks through a long-term hedging strategy. This strategy enables the projects to generate predictable annual cash-flows and reliable project risk management. Based on an average duration of up to 5 years, total unleveraged returns of between 100 % (worst case) and 220 % can be achieved.