The primary investment objective is to achieve consistent absolute capital appreciation, with low volatility and minimal correlation to equity, fixed income, and through alternative asset indices. Investments are made in short-term collateralized loans to exporters, originated via the finance company. All transactions are granted on a discount basis.
In addition to the interest rate charged to the exporters, a LTV ratio is always applied in order to have an additional margin collateral to the typical ones involved, which are allocated assets of the borrower. LTV ratios are constantly monitored and adjusted until the repayment of the loan takes place, always on a specific collection account of the Fund.
There are no local currencies risk exposures in the portfolio as all deals are signed and collected in US dollars. There can be no assurance that the Fund’s objective will be achieved and investment results may vary substantially on a quarterly basis.
The Fund may establish subsidiaries in certain jurisdictions to invest in particular locations or particular markets. In such instances, the Fund will provide funding to the subsidiary through equity or debt financing in order to enable the subsidiary to affect the relevant investment.
Management seeks to identify assets, which at present are not widely traded, and for which no large or established market exists, or which are priced at a level which, in the opinion of the Investment Advisors, undervalues the relevant assets. Such assets may be the subject of future restructuring or renegotiation, which in the opinion of the Management will result the upward revaluation of these assets.
The Fund invests in short-term loans, via a finance company which also may present additional risk considerations. Also, government involvement in and influence on the private sector, political and economic factors as well as leverage and other factors which might adversely affect the Fund activities and the value of its investments are part of the risk. These risk factors may result in greater share price volatility.
The previous description of the strategy represents the investment manager’s present intentions in view of current market conditions and other factors. The sub-investment manager may vary the foregoing investment guidelines and objectives to the extent it determines that doing so will be in the best interests of the investors and in doing so, will not be bound by any predetermined investment restrictions, except for the prohibition on the use of leverage and/or the undertaking of long or short-term borrowing.