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"Everything You Need to Know About Investing in Unlisted Shares in South Africa"

Updated: Jun 1

Are you tired of your money not working hard enough for you? Take the stress of fluctuating markets out of your investment and get an agreed return you can count on.


What if I can get an investment with a predictable outcome where I know what I am going to get?
I need something that will give me something that is predictable

Reasons why we were early adopters of selling unlisted shares tou our clients

  • Set return for the client taking the stress away for the client and the advisor

  • 100% allocation zero or very low fee for the client

  • We as advisors get paid by the company not the client

  • Returns not affected by black swan events like war, unrest or political announcements

Introducing the perfect investment for people who want a steady income with no hassle. Unlisted Shares give you a fixed return on your investment without the need to choose and change funds.


You can relax and know your money is safe and sound, working hard for you daily. With Unlisted Shares, there's no need to worry about losing out on potential profits – we've got you covered. So why wait? Sign up today!


Find out about Unlisted Shares now!


Unlisted Share Companies give a set income
If it is so difficult for fund managers how am I suppose to win in the markets

Invest in South Africa's hidden gems


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- Grow your portfolio with AS Brokers CC


If you're willing to take on some risk and have the capital available, unlisted shares could be an excellent choice! Unlisted shares are not something you can trade on the stock exchange and are riskier than other options; however, if you choose a reliable company with a good track record. In addition, you can get started with a minimum investment of only R100 000. I would suggest researching and talking to a financial advisor to see if this is the right investment option.


If you are reviewing your investments and want to make some changes to your portfolios, expect good growth with unlisted shares.



Diversification

Diversification is critical when it comes to investing in stocks. By investing in both listed and unlisted shares, you are essentially diversifying your risk. While listed shares may offer more stability, unlisted shares have the potential to provide greater returns. Unlisted Shares are not subject to the same regulations as listed shares and can be more volatile. However, this also means that they can be an excellent way to diversify your portfolio and reduce your overall risk.

When choosing which type of share to invest in, it is essential to consider your individual goals and risk tolerance. Investing in listed shares may be the best option if you want stability. However, unlisted shares may be a better choice if you are willing to take on more risk to potentially achieve greater returns. Ultimately, deciding whether to invest in listed or unlisted shares should be based on your investment objectives.


Looking for some predictability
Clients cannot plan because we do not know what the markets will do!


What is your investment goals?


Why are unlisted shares regarded as high risk?

Why are unlisted shares seen as riskier than publicly traded shares?

It's because there's less liquidity in the market for these types of shares. That means fewer people are willing to buy and sell them, making it challenging to find a buyer when you want to sell. The valuations are also generally lower because there are fewer participants in the market. However, there are many opportunities to invest in an undervalued stock. However, it requires some understanding and knowledge to identify such opportunities.


At AS Brokers we have agreements with three different companies with proven track records. We do not actually trade with the shares we create investments for minimum of five years.


Lower volatility

Lower volatility is one of the benefits of investing in unlisted shares. The price of these shares doesn't fluctuate as much as listed shares, so there's less financial stress if you make the wrong investment. The downside, however, is that the quantum of downside can be substantially high. You're also unable to track the demand and supply of these stocks daily, so you must be careful when investing.

Our preferred service providor give a set return and pays a dividend which is more tax friendly for high income earners.



Investigate the investment company or contact an advisor who already did.



Ho much to invest?

The minimum investment is R100 000 with no maximum. The term of the investment is five years. How much exposure to unlisted shares should one have in your investment portfolio? It all depends on your risk profile. If you are a conservative investor, limiting the exposure to unlisted shares to 10% of the portfolio is prudent.

It is essential to evaluate an investment's risk potential, ascertain its risk, and choose one conducive to one's risk profile. If you have a higher risk tolerance, up to 20% exposure can be considered. Beyond that, the risk increases substantially. The magnitude of downside in unlisted stocks is substantially high. Hence it is vital to avail only as much, which aligns well with one's risk appetite.


Investments with more significant returns often attract desperate money.


Investment companies do not want everybody!

There are two types of shares - listed and unlisted. You can buy listed shares as a single unit with minimal funds. In the case of unlisted shares, the investment size is large, and these unlisted companies do not intend to have too many stakeholders.

They also may not choose to dilute investors who may bring value to the company since, as equity owners, they become partial owners of the business. Creating barriers to entry is the first step to ensuring they attract the right investors.


Find the right advisor!

If you're looking to invest in unlisted shares, the first step is to find a qualified advisor. Many wealth management firms are out there, but not all offer access to unlisted shares. Make sure to research and find an advisor with the proper qualifications. Once you've found a qualified advisor, they can help you assess the risks and potential rewards of investing in unlisted shares. While these investments can be high-risk, they can also offer the opportunity for significant returns.


With the help of a qualified advisor, you can make an informed decision about whether or not investing in unlisted shares is right for you.



We are looking for Investors, not savers.

Our Ideal clients are not savers. They're investors.

What is the difference? Savers do not have capital and are still trying to create capital. There are hundreds of investments available for savers.


Investors have already managed to create capital somehow. They are looking to grow it or get an income from it. They don't mind taking a little bit of risk if it means the potential for a higher return.


Our ideal clients understand that the best way to grow their wealth is by investing in a good company with strong fundamentals and a solid track record of success.


Where did our existing investors get their money?

We're incredibly grateful to have the support of investors who voluntarily put their money into the investments we sell.

Our clients have made money from business deals, property sales, divorce settlements, insurance pay-outs, maturing pension funds and the sale of businesses.

These individuals don't need the money for other things and instead want to either grow it or generate an income from it.


Their backing helps us achieve our goals and create value for everyone involved.


Are you sitting on capital or with returns that are not working for you?

Regular questions and answers.

I am living on my pension and am looking for a higher return. Can my compulsory money be invested in unlisted shares?

Answer;

It is called a living annuity and yes a big part of our business today is moving peoples living annuity investments over because our product give a set income. With the recent news that one of our service providers secured a deal with a large insurer, it's time to take a closer look at the fund they've created. This fund has a portion of unlisted shares, which is excellent for those looking to draw down an income of 10% or less. With this income, you won't have to worry about diluting your capital. It is an excellent option for those looking to secure their financial future. Thanks to this service provider, you can rest assured that your money is in good hands.



How liquid is my money and what happens if I want out?

Why do you like unlisted shares, and why do you advise clients to get into such an investment

How do I get involved, and how complex is the process?

What are Government bonds and how does it compare to unlisted shares?

Are unlisted shares traded on the stock market? Can they be bought on the Johannesburg stock exchange?

How do South African Unlisted Shares compare with the rest of the world and Africa? How big is the demand?

Inflation is on the up throughout the world, and we expect interest rates to go up. Many investors will look for more significant returns, often with more volatility. Other factors like war may also be a factor. A change in interest rate looks inevitable. How will this affect investments?

Is unlisted shares something you can trade?

I want to know more.

What are Corporate bonds and how does it compare with unlisted shares?

Why would foreign investors look at unlisted shares in South Africa?

What growth can you expect, and would it not be more viable to invest in something like business, individual stocks, or natural resources? Are there no possible investment options in other sectors? What about assets in other asset classes?

What do you mean when you say the unlisted share investment company agree on the returns upfront?

Summery

With all the signs indicating that a recession is heading our way it is a good time to review the income you are currently receiving from your current capital investments.



Like to start an online business and learn from the best?




Albert Schuurman

Join my financial freedom course where I show students what the role of unlisted shares is in the financial freedom plan.




Investment Specialist
Licenced To Sell Unlisted Shares







1 Comment


We went through a huge effort to be able to sell unlisted shares in AS Brokers and had to get a 1,8 licence. It took a total of 3 years to actually get it but it was the wisest decision we did in our business. We did more business in the investment space in three years than what we did in the previous 21 years. Here is some of the things that me grab the opportunity.

  1. Set return, the company agree on an investment return upfront for example if you invest R1million and the proceed is for example R10 000 per month that is what you will get. They will give you your capital back after 5 years.

  2. The fee…


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