Investment Approach and Guidelines
Investment Approach
Our investment follows this approach in investing and monitor the portfolio to effectively manage risk.
1. Analysis and Sourcing
- Due diligence of the Platform
- Analysis of market trends with qualitative and quantitative analysis
- Utilizing a broad network to source
- Recording data and leverage of past data
3. Monitoring
- Holding monthly investment committee meetings and consciously adjust guidelines
- Monitoring of portfolio value and cash flow
- Analysis and reporting of significant events
2. Decision
- Make quick and accurate decisions based on the investment approach
- Flexible and live investment management based on market trends and analysis
4. Investing
- Utilize multiple digital platforms
- Ensuring adherence to guideline for each transition and overall portfolio
- Sharing of information with administrator for smooth operation
Model Portfolio
A portfolio of 5 mil USD will require and consider the points below.
- The type of commodities will be diversified within the portfolio.
- Each country's trade financing regulations and practices will vary and requires expert input.
- Financing transactions will have a risk mitigation approach utilizing collaterals payment guarantee.
- The lifecycle of each financing transaction will be completed in a relatively short timeframe of 1~6 months.
Investment Guidelines
Area of Investments
- Trade financing of SMEs in Asian Region. Exposure to African regions will be avoided.
- The asset's (trade finance) investment period shall be less than 1 year.
Guidelines
- Portfolio weighting of 1 position at the time of investment shall not exceed 10% of NAV for over 6 months.
- Assets with investment period over 6 months shall not be over 40% of the NAV of the portfolio weighting at the time of investment.
- Leverage: Up to 150% of NAV. Currently able to borrow within 50% NAV but there is no plan to utilize leverage in the near future currently.