Not sure whether to commit - 25k

process

Been saving and got around 25k to invest. No immediate need for this money and looking to invest for around 2-5/5-10 years.

I have been looking into this company

holbornassets.com

and met a broker from there who advises me to put it into a porfolio of off-shore (shares?). A 25-30 year commitment would multiply my initial deposit by 6. So if I were to commit to £800 a month for 2 years (£19,200) they would multiply my initial deposit of 800 by 6 (£4,800). After 2 years I can pay the minimum of $300 a month.

Obviously this is a long commitment, but they have incentive options for 5-10 years where they multiply the initial deposit by maybe 3.

Anyway...my question is, should I be taking this route with this company?:o

I have not a clue what to do, so any advice will be greatly appreciated

Linton

This appears to be a Dubai company. Are you in the UK or an ex-pat??? I cant see any record of them being authorised to give financial advice in the UK.

process

Thank you fro your reply Linton. Indeed they are a Dubai based company, but UK managed. I believe all of their advisers are FSA/FCA licensed. At least I know my advisor is. Also yes, I am an expat.

The below is a little snippet from a terms of business doc that was recently sent to me.

---

Holborn Assets LLC is a firm of International Independent Financial Advisers Licensed by the Ministry of Economy, UAE and the Insurance Authority, UAE

We will act on your behalf in advising you on investments, life assurance, pensions or unit trust products. As International Independent Financial Advisers, we assume responsibility for our Consultants conduct while advising clients. Because we are Independent we can advise on products and services from a range of different companies. We only act for companies from highly regulated offshore centres such as Guernsey, Jersey and Isle of Man where there is a legal framework for Investor Protection.

---

The company's legitimacy seems fine. I'm just curious as to whether this is the best option for me to take. I'm thinking that if I do proceed with this option, I may be interested in doing soemthing like 40% high risk/40% mid risk & 20% low risk. But will obviously take on-board all the advice I can get

jimjames

I'd be extremely (extremely x100) wary of anyone who guarantees they will multiply your initial investment by 6.

I wouldn't touch a company that suggested that and also one that insists you sign up to a 25 year deal. Way too long to me.

process

The x6 is an incentive bonus to sign up for 25-30 years. Any time after 2 years of monthly deposits, money can be withdrawn. However, the initial deposit should remain for 25-20 years or there're penalties.

page 14 of the below brochure illustrates what I mean
rl360.com/generic/downloads/qu001.pdf

Also this was presented as an option... If I do go ahead with this, I'll probaby be leaning more towards a 10 year option where after 2 years of $750/1250 - I will see how the funds are going and consider completing the remaining 8 years with $300 a month. If that is, the right path to take...

Archi_Bald

process wrote: »

I believe all of their advisers are FSA/FCA licensed.

Why do you believe this? The FSA no longer exists, and there is no mention of FCA on their About Us page, or their entire website.

A quick search on the FCA register shows no hits for Holborn Assets.

How did you hear about these guys? What alternatives have you considered / are you considering?

NewBoy12

I don't really know much about investment etc but anything coming out of Dubai sounds fishy - too many crooks in Dubai. Sorry!

But again this could be genuine

Linton

One problem with commenting on your situation is that the ex-pat investment world seems rather different to the domestic one withh much less effective regulatory control and most people here, including me, have no experience of it.

JohnRo

Linton wrote: »

One problem with commenting on your situation is that the ex-pat investment world seems rather different to the domestic one withh much less effective regulatory control and most people here, including me, have no experience of it.

No shortage of experience with people posting adverts dressed as enquiries though.

sabretoothtigger

process

Rest assured, I'm not advertising for this company. And through some research I am convinced enough to not doubt the legitimacy of this company.

My advisor is a finanical advisor in the UK and shares an advisory business with his farther. I have checked his FCA reg no and it checks out fine (for the UK business). Google reviews also seem fine.

One fishy thing may be receiving a call that enquired about any UK pension I had and wanted shifting to an off-shore pension. The caller knew I was an expat (probably through Linkedin) and talked only of pensions. I enquired about investments and met the above talked about advisor.

I'm not very clued up with the investing options, so hasven't really considered many other options. One thing I thought about was buying property at auctions, renovating and selling on. But I'm not even sure how the UK house market is doing.

Maybe I should consider creating a porfolio of shares with a UK FCA approved company?

If and a big if, this company is a scam - it's a very well thought out and convincing one. I honestly cannot see it being one.