The Fund seeks to achieve attractive risk-adjusted returns with the downside protection associated with investing in trade finance and other asset-based and receivables-based, secured private credit opportunities in a manner that is decoupled from public markets’ volatility.
There are around 29 million small and medium-sized enterprise (SME) in the U.S. In response to regulations requiring increased capital requirements, banks have pulled back from the trade finance market, leaving the SME market underserved.
For SMEs, investment firms that participate in trade finance, like Highmore Group Advisors, can be better providers of funding than banks because they are:
Trade Finance can provide both an efficient and valuable source of working capital to the growing SME market.
Short terms on trade and receivables financing, typically ranging from 30-120 days, provides investors with a way to access to private debt without the long lock-up periods found in some private debt products with longer underlying loans.
* Insurance is provided on individual factoring accounts and supply chain purchases. Insurance providers include Allied World, Euler Hermes and Tokio Marine. Credit protection on 90% of capital outlay and accrued fees (interest) on supplier chain finance. Credit protection on 100% of principal on factoring accounts as insurance companies insure 90% of invoices and therefore up to 90% of the face value of invoices are funded.
Private debt is a loan-by-loan business. Ninepoint supplements fund-level oversight with an in-house Due Diligence & Oversight Team that has over 15 years of experience in corporate lending and loan origination.
Supporting our Oversight Team is BlackRock’s Aladdin platform, which provides additional risk management tools for the Oversight Team.
|Fund Type||Open-ended unincorporated investment trust|
|Inception Date||May 31, 2019|
|Registered Tax Plan Status||Eligible|
|Management Fee||Series F: 0.10%
All Classes are charged a 1.55% advisory fee at Master Fund Level
|Performance Fee††||20% over 7% Preferred Rate|
|Minimum Initial Investment||$10,000 accredited
|Minimum Subsequent Investment||$5,000|
|Minimum Investment Term||None|
|Redemptions||Monthly, with 90 days notice†|
* $150,000 for non-individual.
† If during any three-month period, the Manager has received from one or more Unitholders an acceptable Redemption Notice to redeem in aggregate 5% or more of the outstanding Units, the Manager may, at its discretion, choose to redeem such Units in equal Unit amounts over a period of up to 18 months.
†† Fund returns between 7% and 8.75% are payable to the General Partner as a Performance Allocation plus applicable taxes. In addition, 20% of returns in excess of 8.75% are payable to the General Partner as a Performance Allocation.
Please be advised that Ninepoint Trade Finance Fund will be relying on the 45-day extension granted under Ontario Instrument 81-503- Extension of Certain Filing, Delivery and Prospectus Renewal Requirements of Investment Funds (OI 81-503). Ninepoint Trade Finance Fund is relying on the extension in relation to the requirements under section 5.1(2) of National Instrument 81-106- Investment Funds Continuous Disclosure (NI 81-106), which requires an investment fund to deliver to a securityholder its annual financial statements concurrently with the filing deadline set out in Part 2 of NI 81-106. We expect to deliver the annual financial statements to securityholders within the next 10 days.