We bring diversity to your portfolio by blending steady attractive returns with the short term liquidity profile of commodity finance, a crucial part of the real economy.

Investment objective and goal

The objective of the Fund is to generate attractive returns with limited risk and low volatility. For this purpose the Fund enters into contracts with traders or producers of commodities or participates in such transactions.

We base our strategy on providing alternative short-term funding to SME’s (traders, producers and processors) with solid growth potential. These SME’s are largely disenfranchised by conventional banks over stringent lending criteria due to regulatory pressure. The demand unserved by conventional banks leaves the Fund room to provide alternative funding to SME’s in commodity trading, processing and production in energy & petrochemicals, metals and mining and Agricommodities.

The Fund finances the trade of commodities such as agricultural (non-perishables), energy, metals and mining, petrochemicals. 

The Fund's structure and its investments

 

 

 

Fund Structure

The Fund is a Dutch fund for joint account (“Fonds voor Gemene Rekening” or “FGR”) and qualifies as an alternative investment fund. The Fund is formed for an indefinite period of time and as such has no termination date. During the term of the Fund, the Fund Manager may resolve that new participations are issued at the request of a new or existing investor (“Participant”). Each calendar quarter, a participant may, under certain conditions, redeem part or all of its participations. In certain situations, the Fund and subscriptions may be unilaterally terminated by the Fund Manager.

 

How It Works

The Fund invests in financing of short-term trade of essential commodities in form of multiple loans given to multiple traders. The returns of the Fund depends on the interest rate charged for each loan and the collection performance of the loans. The Fund’s results will therefore for an important part depend on the debt service performance of the borrowers . The return of the fund is determined by the interest earned, deducted by fund and management costs and fees.

Advantages for investors

 

Our investment product combines high return with short term investment flexibility.

Performance of CTF loans as an investment class is largely isolated and less reliant on the balance sheet of the borrowers. Moreover extra collateral in terms of Promissory Notes is received from UBO’s of the companies and guarantors while cash margin is also retained on transactional basis. This is what makes our investment proposition a low-risk product.

Interest Rate Correlation — Short term loans priced as a spread over Libor. Returns will fluctuate with Libor.

Low Expected Loss — Low risk of default and loss given default similar to and comparable with investment grade loans.

Unique income Strategy — Consistent quarterly income derived from the actual physical trade transactions of buy and sell.

Liquidity — Highly liquid portfolio matching the short maturity profile of the underlying individual loans

Market Neutral — Returns not directional and uncorrelated to broader market with lower volatility (< 1%)

A well diversified portfolio

The strategy of the fund is to provide short term, self-liquidating trade finance loans to the commodity merchants and producers. The core of the investment strategy is based on a strong diversification policy. Our aim is to construct a well-diversified portfolio and we will below self-imposed restrictions for the financing.

The industry exposure will be only towards commodity traders, processors and manufacturers. The primary focus will be on Energy and Petrochemical Commodities, Ferrous Steel and Related Products, Raw Materials which are used in Iron production and Agricultural Commodities including the oils.

The Bericorp Capital investment portfolio is diversified across country, commodity and single borrower concentration limits, leading to a well-diversified portfolio.

Investment process

 

Commodity Traders and
Producers Requiring Funding

Client Selection and
Origination

 

Selection Finalized and
Package Prepared

 

Diversification and
Other Filters Applied

Investment
Committee

Decision Made

 

Disclaimer

You are about to review information about an alternative investment  product that is not simple and may be difficult to understand.
Potential investors should have both theoretical knowledge and experience with the PRIIPs and how the financial markets work.
 

I Understand, proceed.

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