INVESTING IN REAL ASSETS

Transcription

1 INVESTING IN REAL ASSETS Income, diversification and inflation protection UCITS 5 Fund REAL ASSET FINANCE FUND WHAT ARE THE ASSET CLASSES? Property Debt Real Estate Finance Commodity Finance Precious Metals Forestry/Timber Waste Management and 'waste to energy' technologies Shipping Vessels Oil Refineries PORTFOLIO EXPOSURES Fund Manager Absolute Return Investment Advisers (ARIA) Limited ISINs GBP: MT (Share Class B) EUR: MT (Share Class B) USD: MT (Share Class B) Key Features UCITS Fund Eight years of history Fixed income Coupon of 6% P.A. (1.5% paid Quarterly) NAV stays relatively flat The Real Asset Finance Fund aims to provide: Low historic correlation to equities and bonds A degree of inflation protection both directly and indirectly Relatively low volatility 7% Diversification across a wide range of potential sub- sectors including property finance, precious metals, commodities and trade finance, infrastructure and forestry.

2 INVESTMENT HIGHLIGHTS James Hindmarch Portfolio Manager Multi-asset income Matt Brittain Portfolio Manager The importance of income Paul Magro Independent Risk Manager Momentum driven asset allocation James Ward Portfolio Analyst Dynamic equity exposure Total return: income plus capital growth potential CUMULATIVE PERFORMANCE OF $10,000* DISCRETE PERFORMANCE*

3 ASSET CLASS INVESTMENT DETAILS MATURITY YIELD/ROI P.A. WEIGHTING PTF Plus Holding Environmentally friendly Recyling Technology PTF essentially converts waste plastic into low sulphur bunker fuel, which provides reduced emissions on marine fuel. As important it holds a number of other protected patents. PTF intends to build a number of plants globally to recycle plastics PTF has negotiated highly attractive terms with Masada to acquire the company in full, bringing a host of synergies in the waste management space. 28% 18% Masada Resource Group LLC Waste Conversion Technologies and Service Contracts Holds a highly cash generative waste management services agreement for waste disposal of waste generated in the State of New Jersey. Additional waste streams are available to Masada in other Northeast US States. Business alliance agreement in place to dispose of large volumes of municipal solid waste, which will be converted into ethanol and other environmentally friendly byproducts using the patented and proven CES OxyNol Process. Minimum Revenues are underwritten at 18mn USD per annum per State. 5 YR Horizon 22% 7% Infrastructure Bulk Carrier Vessels m DWT tonnes m DWT tonnes Korean Flag/ Mar 95 Daewoo Heavy Industries Built/ Class KR Current scrap value accounts for nearly 80% of acquisition price Second hand values hovering at near 15 year lows 2nd hand to new build price ratios are today lowest since 1980's (cycle low) Provides ability to ship 'related' waste/cargo Leasing yields offer significant ROI, but capital growth play too 28% 15% Oil Refinery Strategic Geographic Position ,000 barrels per day Cash flow generative and refinery margins attractive at low oil prices Listed refineries trade on forwards P/E's which are at a 40% discount to US stocks Listed companies have resilient margins and well covered dividends Strategic site positioning, and potential to profitable pipeline direct to port Provides both attractive cash generative business and cheap 'distillate' acquisition prices for PTF to produce low sulphur grade marine fuel Huge synergies when combined and sited next to 'PlastictoFuel' technologies 15% 15%

4 ASSET CLASS INVESTMENT DETAILS MATURITY YIELD/ROI P.A. WEIGHTING Precious Metals Gold and Gold Mining Shares Positions typically built through convertible notes on well capitalised mining stocks Interest rate volatility increases the value of the convertible Large scale rationalisation in mining industry has left lean/mean mining machines with significant operating leverage to increases in gold price 7% 7% US Energy REITS US Master Limited Partnerships Oil hedge overlay MLPs are not subject to income tax, and shareholders in MLPs are actually limited partners in company Highly liquid, 'energy' REITs Dynamic oil hedge to mitigate price risk Investment case built around next phase of 'US Energy Independence' Benefits from tailwinds of Trump commitment to infrastructure Weekly 9.87% 10% Senior Secured/ Leveraged Loans Diversified portfolio of equity and mezzanine CLOs BB/BB- for mezz notes US focus geographically, although diversified across industry Closed Vehicle Senior secured CLO notes, secured by senior secured bank loans Quarterly dividend paid from income received from notes 1 MNTH LIQUIDITY 11.50% 13% Property Debt European Residential Mortgage Backed Securities Split Cap Structure Preference Share Structure - 3.1x cover on current yield Weighted Av. Yield on Loan Portfolio 12.3%, WA LTV 70.4% WA Loan life 1.8 years German focus - no loans to Southern Europe 165mn diversified property portfolio Shopping Centre/Retirement Village/Hotels/UK Retail 3 MNTH LIQUIDITY 8.61% 15% Current W/A Yield 17.23%

5 POTENTIAL RISKS OF INVESTING IN REAL ASSETS DISMLAIMER Investments in real assets have risks that go beyond the traditional risks of equities and bonds. Infrastructure-related companies are exposed to changes in the economic, regulatory and political environment. They can be affected by rising costs associated with more onerous environmental and other regulations, difficulty in raising adequate capital, the effects of surplus capacity, potential competition from other providers, changes in fuel costs and supply, new energy conservation policies, government regulation of rates charged to customers, and the risks of an accident or terrorist act. Investments in real-estate companies can be affected by changes in real estate values. Real estate securities are also indirectly subject to the risks associated with direct ownership of real estate, which include potential declines in the value of real estate, changes in general and local economic and real estate market conditions, changes in debt financing availability and terms, increases in property taxes and other operating expenses, and changes in tax laws and interest rates. The value of securities of companies that service the real estate industry may also be affected by such risks. Investing in commodity futures is volatile and even a small movement in market prices could cause large losses The risks of investing in index linked bonds include interest rate risk, liquidity risk and some credit risk. Absolute Return Investment Advisers (ARIA) Limited is a Limited Company. Authorised and Regulated by the Financial Conduct Authority Register in England and Wales No: NEBA FINANCIAL SOLUTIONS PRIVATE LTD. 160 Rob in son Road #25-05 SBF Cen ter Singapor e ( ) Office: info@nebaf ina nci al sol u tion s. com This document has been prepared by a Sales and Marketing function within NEBA Financial Solutions Pte ("NEBA") for, and is directed at, Professional Customers and Eligible Counterparties. It is not investment research or financial analysis as these terms are defined in applicable regulations and has not been prepared by a research analyst. NEBA provides support services to the Financial Services Industry and does not act as a Principle/ Product Provider or provide any form of Financial Advice either to Professionals or Individuals. Any information or data provided in respect of any individual product or investment is for the exclusive use of Professional Advisers and is provided on behalf of the named Bank or Product Provider originating such proposition and material. All of the details set out in this sales brochure pertaining to the Securities comprise a mere summary, and are not a complete description of the Securities. Investors should read all of the details pertaining to the Securities that are set out in the prospectus in respect of the Securities. The Company does not accept any responsibility for any errors or omission in the material and data supplied. Research data supported by Zack s Investment Research, Bloomberg, Financial Times, Economic Databases, and other market data sources. At the time of writing we believe the information shared here and presented/ reported from these sources is accurate and free from error to the best of our knowledge. Any documents do not constitute an offer, or an invitation to offer, or a recommendation to enter into any transaction. We are not acting as your financial adviser or in a fiduciary capacity in respect of this proposed transaction or any other transaction with you unless otherwise expressly agreed by us in writing. Before entering into any transaction you should take steps to ensure that you understand the transaction and have made an independent assessment of the appropriateness of the transaction in the light of your own objectives and circumstances, including the possible risks and benefits of entering into such transaction. You should also consider seeking advice from your own advisers in making this assessment. Before investing in derivative instruments, investors are highly recommended to ask their financial advisor for advice specifically focused on the investor s financial situation; the information contained in this document does not substitute such advice. If you require more information or research regarding the product, underlyings, or NEBA please contact us directly at info@nebafinancialsolutions.com with your questions and needs.