Waves by YFSOL—The Simple and Quick Investment Plan for Yacht Crew
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The 5 Rules of WavesWaves works because of simple and effective rules
Waves by Yachting Financial Solutions is a simple, cost-effective investment plan for yacht crew.
It gives you an easy way to invest, so you can turn your hard-earned money into more money.
It’s straightforward and transparent. And it’s designed especially for you.
Waves is based on five simple rules.
Rule 1: Pay yourself first
Most people only look at setting something aside if they have money left over. That’s virtually never. We usually spend it all.
A better way is to put some money aside first. Then, if you spend the rest, you still have money saved.
Rule 2: Invest at regular intervals over a sustained period of time
Take a look at this graph. It represents the value of a fund over time. It goes up. It goes down. If you could, when would you invest a lump sum in this fund? At point A, B or C?
B? Yes. It’s the bottom of the market, so your money will grow the most if you invested at this point.
Thing is—you only know when the low point is after it has happened. Hindsight is perfect, but very little good to you if you missed the perfect moment.
However—if you invest smaller sums at regular intervals over a sustained period of time, you will almost certainly invest at least some of your money at the most profitable time.
Waves is designed to maximise your investment by allowing you to invest relatively small amounts of money on a monthly basis.
That means, you’ll benefit regardless of whether the fund goes up or down. In fact, provided you invest in a fund for long enough, a drop in value is an exciting time.
You see, everyone wants to invest when a fund is at its lowest. After all, if the value of the fund only goes up once you’ve bought into it, you’ll make the biggest return. But it’s impossible to know for sure when the value of a fund has bottomed out.
By investing at regular intervals, Waves makes sure you have money going into the underlying funds when they are at their lowest.
Provided the fund increases in value over time, the money you invested when the fund was at its lowest will give you the best return. Even the monthly parcels of money you invested when the fund was relatively high will give you a return, as long as the value of the fund continues to grow.
And we’ve thought of that too. That’s Rule 3.
Your Waves investment is spread over three funds.
These underlying Waves funds are very different and complement each other. Each one focuses on a particular kind of investment and has a particular approach.
In this way, we’ve spread the risk of investing in Waves, thereby reducing it. However, bear in mind that the risk isn’t zero. This isn’t a guaranteed savings account, after all. And risk is what drives healthy growth prospects, especially when you invest over the medium- to long-term (five years plus). And isn’t that what you want?
Rule 3: Diversify to manage risk appropriately
Waves places your money in three funds:
21C—A highly diversified fund that focuses on alternative investments and has no exposure to the big equity and bond markets.
Ruffer—A fund built on the belief that a strategy that delivers consistent, moderate returns is better than one that sometimes scores big, sometimes loses big.
RIT—RIT invests in a combination of publicly listed companies, large privately owned companies and potential superstar businesses with aggressive growth potential.
Rule 4: Be cost-efficient
Waves is designed to help you invest cost effectively in funds that would normally be closed to you.
Usually, you would need to invest a large lump sum to be able to buy into the funds that underpin Waves. We’ve made it possible for you to invest in these funds by putting in smaller monthly sums of money—as little as €500/month.
Not only that, we’ve structured Waves so that after six months, you can withdraw your money quickly and without charges or penalties.
You might expect this access and flexibility to come at a high cost. Not so. We’ve been able to build Waves in a way that keeps costs down to a minimum. That means more of your money gets invested.
Waves fees are among the lowest in the industry. There are four costs associated with Waves.
1) There is a monthly service fee of €15. This covers the fixed costs associated with the financial structure that underpins Waves. This is added to the money you transfer into Waves each month.
2) There is a 2.5% charge on your monthly investments to pay for the mechanism of investing your money into each of the three funds. In other words, 97.5% of the money you pay in is invested into the funds each month.
3) There is an annual 1.75% fee to pay for the costs associated with administering the Waves scheme. This fee is deducted annually from the value of your fund holding.
4) The only other fee is the charge your bank makes when you transfer money out of Waves.
Rule 5: Take action
The key to building up a pot of money over time is to actually do something about it.
The sooner you start, the sooner you’ll be building up a pot of money.
What’s certain is this: if you don’t start, you won’t build up anything.
That makes Rule 5 the most important rule of all.
Who & What Drives Waves?The team behind Waves has decades of experience and is fully committed to making your money grow
Waves Is Managed by
Yachting Financial Solutions DAC (YFSOL)
Waves was created by and is managed by YFSOL.
YFSOL is the only financial consultancy that deals exclusively with yacht crew. It has been helping yacht crew leave yachting financially independent since 1992.
In addition to financial planning, YFSOL provides banking, mortgage, insurance and currency exchange services designed specifically for yacht crew.
The company is a Designated Activity Company (DAC) headquartered in Ireland and regulated by the Central Bank of Ireland, no. 50057. It has offices in Antibes, Palma and Manila.
Boal & Co (Pensions) Ltd
Boal & Co is a firm of international actuaries and consultants specialising in advice to offshore insurance companies and pension schemes. They act as custodians of the money invested in Waves.
The company is headquartered on the Isle of Man and has offices in Gibraltar, Dublin and on Jersey.
Boal & Co is a member of Abelica Global, a leading international organisation of actuarial and consultancy firms. The company is registered with the Isle of Man Financial Services Authority as Professional Schemes Administrator, number RA010.
The Three Underlying Waves Funds
21C is a low volatility fund that is highly diversified. It invests across a range of sectors, including agriculture, forestry, energy/bio fuels, specialised property (student accommodation, care homes, ground rents), and infrastructure. 21C gives you access to a widely diversified portfolio of funds managed by specialist managers that you’d normally only find in an individual portfolio of substantial value. The fund is designed to generate steady returns above inflation over the medium to long term (5+ years). It does so while avoiding the sharp swings in the financial markets. The target return on investment of the 21C fund is 7-8% growth per year.
Ruffer has built its approach to fund management on the basis of solid, low-risk investments. It believes that a strategy that delivers consistent, moderate returns is better than one that sometimes scores big, sometimes loses big. It aims to make a return on its investments, whatever the market conditions are.
That doesn’t mean Ruffer sticks to the mainstream. In seeking to secure reliable returns on its investments, it doesn’t follow the pack. A maverick, but one that emphasises preservation of assets and solid growth over high-potential/high-risk investments.
Rothschild Investment Trust (RIT)
This is where the Rothschild family puts a large part of its money, which should tell you something. RIT invests in a combination of publicly listed companies, large privately owned companies and potential superstar businesses with aggressive growth potential.
As you can tell, RIT is built on an investment strategy that mixes high- and low-risk investments—though at all times subduing the overall risk to the portfolio. The net result over time has been returns that have consistently beaten those in global equity markets since 1988.