Diversification is Central to what Portugal Panorama stands for, use it sensibly for your Golden Visa Benefit.
Golden Visa Investors are unique and evolving. Previously it was all about the visa and investment success was a bonus. Now, correctly so, investors are looking at a blend of solid growth potential, downside protection and of course zero Golden Visa risk. This is a positive development as residency or citizenship by investment assets have grown into an asset type in their own right.
As such they should be judged on typical investment fundamentals such as team, track-record, diversification and risk.
It was with the above in mind that Portugal Panorama FCR adopted a co-investment strategy taking investors to winning areas of the Portuguese Economy (Hospitality, Agriculture, Renewable Energy and Healthcare) in co-investment with the leading independent fund managers in these areas. This offers investors important diversification but also the peace of mind knowing that every investment is checked twice by separate fund managers of the highest quality: 1) The sourcing fund manager bringing the deal to the table, and 2) FundBox SCR the fund manager of Portugal Panorama FCR.
Essentially 4 funds in 1 without the multiple layers of cost as a ‘fund of funds’, it is this blend that ensures the fund is not overexposed to any investment area, fund manager or indeed investment allowing investors the ability to ‘sleep well at night’.
This contrasts with the typical open-ended funds in Portugal looking at publicly traded equities being punted at Golden Visa investors. The Portuguese Index has ended 10 of the last 20 years in a losing position and lost 15,9% over that period. It is particularly susceptible to Black Swan events due to several factors, including market size, liquidity constraints, economic concentration, and external dependencies.
However, at Portugal Panorama we clearly do value diversification and assisting Golden Visa investors with meeting their objectives.
If liquidity for an unforeseen emergency or a change of heart is essential to a Golden Visa prospect, they may be better off considering a fund focussing on bonds as opposed to equities. They may struggle to beat inflation though and certainly not cover fees incurred in the Golden Visa journey such as legal, government or travel costs.
Therefore, sensible guidance would be to consider a blend of a Private Equity Fund that has been structured along the lines of Portugal Panorama FCR targeting low double digit NET annual returns and a Portuguese Fund concentrating on corporate bonds. This would offer investors acceptable returns with the comfort of having half their investment in a liquid position.
Flexibility with growth aligns well with the mindset of Golden Visa Investors who are looking to mitigate risk and establish a legacy position for their families. It is central to The Modern Seven Flag Theory which is an evolved version of the traditional Five Flag Theory, a strategy for international diversification aimed at maximizing personal and financial freedom, reducing taxes, and increasing privacy. The seven-flag approach expands on this by incorporating modern financial tools, digital assets, and geopolitical realities.
The Seven Flag Theory involves establishing legal, financial, and lifestyle presences in multiple jurisdictions to take advantage of the best laws and opportunities in different countries.
Most of us at Portugal Panorama have spent a significant part of our careers in consulting advising HNW families globally on their interntaional tax affairs and transferring of legacy wealth from one generation to another. Careers spent mitigating risk and managing change which we have applied to the concept of the only co-investment Golden Visa qualifying fund. We woiuld welcome the opportunity to see how we can assist.
Author: Michael Maxwell – Founder of Portugal Panorama
