Rich offered new, higher-risk instruments that shun masses

HIGH-NET investors are getting dozens of offers per quarter to pump their funds into relatively high-yielding debt and equity securities in offers not sent to the masses called exempt distributions or XDs, with the $11 billion offer from VM Financial Group being the latest.

These financial securities firms are not elitist. But they are careful to offer these higher-risk instruments to persons with deeper pockets to withstand shocks.

The VM Financial Group plans to list the shares on the “private market of the Jamaica Stock Exchange (JSE)”, according to the document outlining the terms and conditions of the VM offer. The VM offer opened on March 31 and expires on April 28.

“Securities listed on the private market may be bought and sold only by accredited investors and large purchase investors – the latter being persons whose trade must be J$10 million or more in value,” stated the VM term and conditions sheet.

Accredited investors generally can include financial institutions, pension funds, and rich individuals.