Micro-finance for social good

Creating Quality Peer-to-Peer Investment Opportunity

You've heard about the peer to peer lending with the web company Prosper.com. Before you try this new investment opportunity, it'd help to grasp the company and how they work. Investing money in a unique way away from the standard investments such as bonds, stocks, CDs, and cash markets, might be cause terror. It's important to replace that fear with information about the company and how it works. Then you can decide how, what and when to invest your money the proper way. Here are some facts about the online company Prosper.com.

In 2006, the company prosper opened its online doors to the general public. It was set up by Chris Larsen along with John Witchel. They were supported by many different finance firms like Fidelity Ventures, DAG Ventures, Meritech Capital Partners, baseline Capital, Accel Partners, and Omidyar Network. It is based out of San Francisco, California. It's a new kind of investment opportunity. They created an online peer to peer lending. The banks, credit unions, or any other 3rd person parties are cut out of the lending picture. Think of it as an Ebay.com except for money. It is like a web auction where folks can borrow cash, request for loans, and negotiating loan rates. All cash requests are only based on the US greenback and the website does not support any other type of currency.

The sale or acquisition of loans relies on the credit grades that users receive. Potential borrowers' credit histories are available to those using this as an investment opportunity. Scores are obtained from Experian Scorex and credit history. As a potential lender you can sort through possible borrowers and discover the kind of loan you would give. It is possible for you to lose money if a debtor defaults on his or her loan, so there are risks involved with this type of investment opportunity. At the same time, as a bank you decide when, who and where you'll risk your money.

based on credit ratings, Prosper.com gives out what is called'credit grades' to the borrowers. The highest score someone who is requesting a loan can receive is an'AA'. This suggests their credit history is a seven hundred seven hundred and 60 or higher. Lenders can tell from these credit grades the safety of their loan to the individual. The lowest score is a'HR' meaning risky, their credit report is between 5 150 nine and 500 and twenty. Scores in between the extremes rank in order of A, B, C, D, and E. Credits score at the highest end are about 7 150 9 and extend to 500 and 60 on the bottom.

As a safe investment opportunity, this route may bring in more cash than trying your money at the stock market, bonds, or certificates of deposit. Since you will know about the chance you'll be taking in giving loans to someone online, you've a better bet at determining your risk. With the stockmarket, no one can predict its rises or its falls. In lending peer to peer, you know the chance of those you lend to and it may not be quite as surprising as the hilly ride of the stock market. It is a unusual investment opportunity, but it brings in steady returns.

Don't let fear run your life, take the required steps to teach yourself on matter you do not understand. Learn what you can about Prosper.com and the ups and downs of peer to peer lending on the web.

Art Market: Will art save the world from protectionism?

With Art Basel attracting 61,000 participants this year recent art deals reaching record highs across nearly every collecting genre, medium and period and art being dubbed “the new asset class,” art investment funds have returned to the marketplace as viable alternative investments. Still an emerging industry, there are now an estimated fifty art funds in the United States and new global sectors such as the Middle East, Asia and Russia ranging in stage of development from capital raising to buying fund assets. Investors in these art funds, who are often individual private collectors with an affinity toward and considerable experience with art, are increasingly viewing art as no longer purely a cultural pursuit but as serious monetary investments as well.
Given the basic strategy of any investment to “buy low and sell high,” with art being no exception, the idea of investing in an art investment fund might seem easy – funds conduct due diligence on certain sectors of the art market, acquire undervalued artworks at low price points, sell their artwork when valuations
have peaked and thus succeed in a classic well-tested investment strategy.
The art market now exceeds $50B in annual transactions globally, making it the largest lawful industry in the world that is essentially unregulated. The unregulated nature of the art industry engenders a lack of transactional transparency and, in turn, high risks of ownership disputes or what is otherwise called defective legal title. Defective art title risks are compounded by the long-standing practice in art transactions of withholding seller and buyer identities to protect their privacy as well as dealers’ sources and pricing structures.

New Saudi Sovereign Wealth Fund

A new Saudi sovereign wealth fund (SWF), Sanabil Al Saudia, commenced operations last week. Gulf SWFs have recently initiated significant changes in their investment strategy. They have shifted away from investing in Western markets, particularly the financial sector, and started to invest in local businesses and banks. Furthermore, they have decreased the dollar ratio in their investment portfolio and started to improve their transparency as a response to the global anxiety over their investment goals. How will this affect my portfolio in the medium term?

Family Office: Family Businesses, Wealth and the Economy

Regarding family businesses, family wealth, and the economy: What are the drivers of risk management we should all be paying attention to during the current turbulence?

One of the central factors family businesses must contend with, especially during a period of economic uncertainty and volatility, is the successful management of risk. Family businesses and families of wealth are seeking the most effective methods for accurately accessing and effectively responding to all sorts of risk – whether it impacts business operations and productivity, governance, maintaining adequate liquidity, human capital utilization, returns on R&D, protecting brand equity, determining M&A options, or the security of personal assets.

Right now, the family enterprise is challenged to employ the most effective strategies for sustaining its competitive viability while world economies wrestle with the fallout of contraction and issues of globalization. This year, therefore it is imperative that your Financial Advisor is focusing on the nature, function, and management of risk - and it is critical to the family enterprise with its complex mix of tradition and innovation.

One could consider these questions:

What is the most critical risk issue my portfolio faces in this current environment?
How is this issue playing out within the unique context of the family enterprise that may be different than another private or publicly-held organization?
What is the most important macro concern family businesses need to be aware of when the turbulence has finally settled?

Family Offices: What are they?

Family offices are exclusive wealth management firms that usually only accept clients with at least $10-$25M of investible securities. They typically have less total clients; however, spend more time with each client often assisting with tax, estate planning, charitable giving, foundation, and even budget issues in addition to traditional wealth management services. The costs are typically a little higher than a traditional wealth management office but you get more personal comprehensive service and usually a more sophisticated view of portfolio construction with access to alternative investments.

Family office professionals will take the time to ensure your separately managed account investments and Hedge Funds are balanced and in line with your 401k or IRA investments. Their employees are often experienced and sophisticated enough to understand unified managed accounts (umas), and will be able to explain them to clientele so they may be employed where appropriate. While many family offices use hedge fund of funds, family office professionals will often find an individual hedge fund manager that fits you best if they do not already have one that they work with, and ultimately they are known for working harder to make you happy because they only work with a smaller group of core clients. Many high net worth individuals belong to health groups where doctors will take the time to set down with you for a couple hours each quarter or year and talk about your health and habits. This type of highly personal attention is equivalent to what you get in a financial sense at the best family offices.

The Future of the Global Financial System 2009: World Economic Forum

The value of your portfolio is contingent upon macro-economies, is your advisor on the ball, do they know where the world is heading? Watch this video by the World Economic Forum...

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What questions should I ask my Attorney?

1. Are GRATS (Grant or Retained Annuity Trust) a good way to transfer wealth to heirs with minimum levels of taxation?
2. Are IDGTS (Intentional Defective Grantor Trust) an ideal instrument as a seed gift?
3. If I rely on real estate wealth to pay for estate taxes why should I reconsider Life Insurance?
4. Will self-settled trusts help protect me in a downturn?
5. How is a CDAR (Certificate of Deposit Account Registry) protected by the FDIC?
6. Is an intra-family loan a good way to ensure the lowest taxable rate?

Soveriegn Wealth Funds...what if a full scale backlash? Where are they?

What would a full-scale backlash against SWFs mean for my investments, both here and overseas?

List of funds:

# Algeria - Revenue Regulation Fund
# Angola - SWF Presumed
# Australian Future Fund
# Azerbaijan - State Oil Fund
# Bahrain - Mumtalakat Holding Company
# Botswana - Pula Fund
# Brazil - SWF presumed
# Brunei Investment Agency
# Canada - Alberta's Heritage Fund
# Chile - Pension Reserve and Social and Economic Stabilization Fund
# China-Africa Development Fund
# China Investment Corporation
# China - National Social Security Fund
# China - SAFE Investment Company
# Hong Kong Monetary Authority Investment Portfolio
# India - SWF presumed
# Iran - Oil Stabilisation Fund
# Ireland - National Pensions Reserve Fund
# Japan - SWF presumed
# Kazakhstan National Fund
# Kiribati - Revenue Equalization Reserve Fund
# Korea Investment Corporation
# Kuwait Investment Authority
# Libyan Investment Authority
# Malaysia - Khazanah Nasional
# Mauritania - National Fund for Hydrocarbon Reserves
# New Zealand Superannuation Fund
# Nigeria - Excess Crude Account
# Norway - Government Pension Fund – Global
# Oman - State General Reserve Fund
# Qatar Investment Authority
# Russia - National Welfare Fund
# Saudi Arabia - Public Investment Fund
# Saudi Arabia - SAMA Foreign Holdings
# Singapore - Government of Singapore Investment Corporation
# Singapore - Temasek Holdings
# Thailand - SWF presumed
# Timor-Leste Petroleum Fund
# Trinidad and Tobago - Heritage and Stabilization Fund
# UAE - Abu Dhabi Investment Authority
# UAE - Emirates Investment Authority
# UAE - Investment Corporation of Dubai
# UAE - Mubadala Development Company
# UAE - RAK Investment Authority
# USA - Alaska Permanent Fund
# USA - Alabama Trust Fund
# USA - New Mexico State Investment Office Trust
# USA - Permanent Wyoming Mineral Trust Fund
# Venezuela - FIEM
# Vietnam - State Capital Investment Corporation

Can you Bank on Your Bank?

The reshuffling of the financial cards has seen so many changes recently: Merrill Lynch, Lehman Brothers, Washington Mutual, Neuberger Berman, Wachovia, and a host of Private Wealth Management operations are changing hands. Some of these deals both here and abroad (even in Switzerland) will precipitate significant changes within the banking culture and possibly operational changes for clients. Can you bank on your bank?