The Cayman domiciled fund aims to provide “predictable and consistent monthly returns” by investing in quality short dated receivables (debt and other owed assets) with a maximum duration of 90 days. Verredus said the goal is to provide annual returns, after fees, of between 6% to 8%, with low to moderate risk.
The company said it controls risk by utilizing credit default insurance, only funding up to 85% of any invoice value and diversifying across industries and end debtors.
“We believe we have a unique investment product that will be able to provide the income component that investors are searching for,” said Matt MacKay, director, Verredus Funds.
“Solid risk adjusted yield is very difficult to deliver right now. Rates are at historic lows and are projected to continue to pay next to nothing for some time. Credit is extremely tight, banks are not lending and companies are looking for alternative forms of financing, such as using their receivables as collateral. Verredus is able to provide this financing and at the same time provide investors with solid returns.”
IA Fund Facts
Currency – sterling
Minimum Investment – £10,000
Unit Creation Fee – 0.5%
Annual Fee 2.0%
Initial Fee Option – 0% — 4.5%
Or 100% allocation subject to exit penalty
