investment objective & strategy

The Fund invests into collateralized, short dated trade finance transactions which involve all facets of the trade cycle including the purchasing, transportation and storing of the underlying products as well as the final sale of the product to the off-taker. The aim is to maintain control and ownership of the collateral throughout the trade to reduce the risk of any defaults.

The Fund may co-invest with banks and other financial institutions or utilise leverage to structure deals that are cost effective for the client but still lucrative and secure for the Investor. The Investment Advisor will be required to demonstrate that each transaction satisfies the principals of ‘security’ and ‘serviceability’ before any funds are deployed. The fund will make use of well established service providers throughout the trade

process to ensure that its collateral is well controlled at all time. These services would include logistics companies, collateral managers, insurers and reputable banking institutions. The short duration of each underlying transaction means that the Fund will experience high volumes of cashflows on a monthly basis. Although this may lead to “cash drag” in some months, it allows the fund to crystalize its returns regularly.