Capital preservation refers to the strategy or objective of safeguarding the initial value of an investment or capital. Investors who prioritize capital preservation aim to minimize the risk of loss, ensuring that their principal amount remains intact or experiences minimal decline. This approach typically aligns with conservative investment strategies, where the focus lies on protecting capital rather than pursuing high returns. 

While capital preservation is crucial, it’s essential to acknowledge that all investments carry some level of risk. Even seemingly low-risk investments may be influenced by factors such as inflation, market fluctuations, or shifts in economic conditions. Therefore, investors should actively assess their risk tolerance, investment goals, and time horizon when adopting a capital preservation strategy. 

The HG Capital Preservation Investment Objective and Strategy 

HG Capital actively pursues the strategy of delivering above-average risk-weighted returns to wholesale investors, distributing monthly payouts. The investment approach revolves around providing investors with professionally managed exposure to a diversified portfolio of finance income returns derived from commercial debt opportunities in the A$3 million to A$25 million loan size range. 

Moreover, HG Capital secures investments with first mortgage securities (and, in most cases, additional guarantees), maintaining a loan-to-value ratio of approximately 60%. This strategy ensures protection against significant market downturns and serves as the cornerstone for maintaining capital preservation, regardless of market or individual loan movements. 

Moreover, HG Capital secures investments with first mortgage securities (and, in most cases, additional guarantees). This strategy ensures protection against significant market downturns and serves as the cornerstone for maintaining capital preservation, regardless of market or individual loan movements.