The Commercial Financial Opportunities Fund (CFO) – the first to launch following Prestige’s equity stake in Isle of Man-based Methexis Holdings – is a Luxembourg-registered Sicav-SIF diversified portfolio consisting of short-term commercial and industrial account receivables.
It is on offer to experienced investors in five currencies – euro/ dollars/sterling/Swiss francs and Swedish Kroner – and it is aiming for a capital appreciation of between 6% and 8% net per year.
According to Craig Reeves, director and founder of Prestige Fund Management, the CFO comprises a diverse portfolio with a low default risk which is designed to generate a steady stream of income for investors without the volatility associated with traditional equity and fixed income strategies.
He added that the fall in UK bank lending to small and medium sized companies presented “a significant opportunity to fill some of the gap in funding”.
The fund, which requires a minimum investment of €125,000 (£106,000), will launch in all territories outside the US, Canada and Australia, although Reeves added that his firm wouldn’t rule out launching a similar fund in these territories “at some point in the future”.
While there is no initial fee, the management fee is 1.5% per year and there is a performance fee of 20% on net profit after its 4% hurdle rate.
