Market and Fund Overview

Since 2008, rising regulatory cost of capital and stricter compliance and Anti Money Laundering requirements and costs have caused the banks to reduce their overall exposure to Trade Finance, particularly SMEs in emerging markets which are now less profitable clients for banks. Sizeable trade finance gap – estimated at US$1.5 trillion by the ADB, with approximately US$600 billion unmet in Asia alone.

The Fund fills the gap by providing investors the unique opportunity to participate in the commodity supply chain without the downside risk associated with volatile commodity prices.

Target investments are companies in Asia involved in the trading, producing, processing, transporting, warehousing and distributing of physical commodities including energy, metals and minerals, agricultural commodities.

Asset composition consists of one or more of the following – short to midterm, self- liquidating, secured financing of specific flows with an identifiable source of repayment.

Portfolio diversification is achieved through financing in trade flows of different tenors, financing types, geographies, commodity types and counterparties.