YSO2: LEGAL MARIJUANA

We launched our first legal cannabis investment opportunity in June of this year. The returns have been nothing short of spectacular. Combined, the three funds we helped clients invest in returned

 

44.5% in the THREE months after launch.

 

$10,000 invested in June would have grown to $14,450 in three months. That’s a growth of almost $50 per day.

$100,000 invested in June would have grown to $144,500 in three months. Almost $500 per day.

 

If you missed out, don’t worry. Marijuana is only just starting to go mainstream and you could still benefit from future growth.

Marijuana now legal in Canada—Will Others Follow Suit?

Recreational use became legal throughout Canada in October. (Medicinal use has been legal in Canada since 2001.) Other western countries could follow suit. After all, legalising cannabis means it can be taxed—a key reason alcohol prohibition was lifted in the US in 1933. Already, it is legal for medicinal use in 31 US states and for recreational use in 9 states and Washington DC.

You don’t need to look far for evidence of marijuana’s increasing public acceptance. Chairman Clive was in California earlier this year and saw billboards everywhere advertising: “Have Marijuana delivered to your home”, as well as seeing upmarket boutique cannabis shops in Beverly Hills and Venice Beach: Medmen).

From Netflix programmes about cooking with marijuana (Cooking on High) to beers, cannabis is becoming part of daily life.

We’ve brought together three funds for this investment opportunity.

Horizons Marijuana Life Index (Canada)—USD 873,550,599 under management over 51 separate holdings.

Redwood Purpose Marijuana Fund (Canada)—USD 25,400,000 under management over 39 separate holdings.

ETFMG Alternative Harvest ETF (US)—USD 692, 645,924 under management over 40 separate holdings.

That means investors in YSO2 will be joining just under USD 1.6 billion already invested in 130 holdings in these three funds. That’s a USD 350,000,000 increase since our June YSO1 marijuana offering.

Significant growth forecast

Legal cannabis sales are set to quadruple from around US $6.5billion in 2016 to US $24.5billion by 2021 in North America alone, according to a study by investment data house Arcview Market Research.

And only days ago, the Canadian senate passed legislation to start the process of legalising marijuana for recreational use nationwide, possibly by the end of the summer. That should boost the predicted North American market growth even more.

Legal Marijuana: the Risks

Let’s look at the other side. While the signs are promising, the future of legal marijuana is hard to predict.

The main thing to be aware of is that marijuana is a commodity. That means as demand grows, more people may farm it. Growth in supply growth may outstrip growth in demand. It will be interesting to see how cannabis producers and manufacturers of products that use cannabis distinguish themselves and their products.

The big prize is the US market. There is huge potential growth here. Further legalisation may happen or the US might roll back its current legalisation of cannabis for medicinal and recreational uses. At the start of the year, US Attorney General Jeff Sessions removed provisions that provided some protection against the enforcement of federal law in states where cannabis is legal. However, he has also indicated he is concentrating on cracking down on more destructive substances—leaving current individual state rules for legalised marijuana in place rather than attempting to row them back.

Please also note that while the returns so far have been fantastic, past performance is no indicator of future results.

Our take: we think there are some excellent returns to be made, especially as we are at the beginning of marijuana’s mainstream appeal, but the risks are commensurate with the potential for high returns.

NOTE: similar to our position on wine (alcohol), Yachting Financial Solutions holds a neutral position towards the consumption of marijuana. We see that as a matter of individual preference, judgment and choice. We are merely highlighting its investment potential.

YSO2: Legal Marijuana in a Nutshell

We’ve identified three marijuana funds for this YFSOL Special Opportunity: two with a solid track record and a newcomer with exciting potential.

The minimum investment is US $10,000 for existing Polaris clients and US $25,000 for new ones. There is no upper limit.

The investment window for YSO Marijuana 2 closes on 30th November, 2018. So don’t delay if you are interested. The sooner your money is invested, the sooner it is working for you.

To participate, you will need to set up a YFSOL Polaris account if you don’t already have one. Don’t worry. It’s simple and you only need to do it once. We’ll help you.

Details

Structure:
You will be investing equally in three funds through YFSOL’s Polaris platform:

  1. 1/3 in Horizons Marijuana Life Sciences Index ETF (Canada)
  2. 1/3 in Redwood Marijuana Opportunities Fund (Canada), the new boy on the block
  3. 1/3 in ETFMG Alternative Harvest ETF (USA)

Valuations:
Valuations are completely transparent and are done daily by the exchanges where the funds are traded. You can check prices at any time.


Redemptions:
At will. You hold the investment directly through our Polaris platform.


Base Currency:
US Dollars


Minimum Investment:
US $10,000
 for existing Polaris clients; US $25,000 for new Polaris investors

 

Your Next Step

If investing in legal marijuana excites you, get in touch with Clive or Teresa today. They’ll guide you through the process.

Get in touch today.