ANCILE TRADE ACCESS PROGRAM SUB-FUND
The Sub-Fund shall seek to establish a diversified portfolio of Eligible Assets focused on the Geographic Region and aims to provide consistent risk-adjusted returns that display low volatility and low correlation to movement in interest rates. The Sub-Fund will seek to invest in a portfolio of short to medium term Eligible Assets to support the real economy and the physical flow of goods.
The investment objective of the Sub-Fund is to achieve risk averse but efficient, both financially and socially responsible, superior returns by extracting the most value from non-speculative and tangible activities operated by the Investees. The Sub-Fund is targeting to achieve consistent average annual returns equal to approximately 6% to 8% per annum (or 0.50% to 0.66% per month) of the Net Asset Value of the Sub-Fund and Sub-Fund level taxes. This is a financial objective that the Sub-Fund aims to achieve. However, it cannot be as an assurance of guaranteed that the Sub-Fund shall achieve this goal given market fluctuations and other risks to which the Eligible Assets might be exposed. The Shareholders acknowledge that the Investment Manager shall not be liable for any failure to meet such investment objectives and performance targets.
To achieve the aforementioned Investment Objective, the selection of Eligible Assets shall focus by priority on investing in Trade Finance Private Debt and subsidiarily into Eligible Assets other than Trade Finance Private Debt depending on the available liquidity of the Sub-Fund.
The Investment Manager shall originate and screen investment opportunities as described in Article 7.1 either directly or through the intermediation of Investees and Alternative Trade Financiers in compliance with Article 4.2.3. and;
The Investment Manager shall assess and perform an in-depth analysis based on the following principles:
Identify Trade Finance Private Debt that offer a stable and non-correlated return to generate consistent returns with limited, or zero, correlation to any of the major asset classes of the financial markets and represent a selection of self-liquidating investments secured by Collateral.
Follow a detailed approval process including fundamental and credit analysis of all aspects of each Trade Finance Private Debt and support of sustainable practices.
Engage with Investees based on;
(i) Their track record from past transactions;
(ii) A know your counterparty due diligence process following the provisions in the Anti-Money Laundering/Countering the Financing of Terrorism/Financing the proliferation of weapons of mass destruction (AML/CFT/PF) legal and regulatory framework in force under Luxembourg law;
(iii) An internal credit risk assessment; and
(iv) A counterparty assessment and evaluation based upon certain ESG credentials, which seek to increase the portfolio’s exposure to those counterparties demonstrating a robust ESG profile.
The Investment Manager may decide at any time to implement any other appropriate investment strategy to achieve the Investment Objective of the Sub-Fund in compliance with the Investment Diversification and Restrictions applicable to the Sub-Fund.