Matrix launches new closed-ended asset-based lending fund
Matrix has launched a closed-ended version of its open-ended Asset Based 2 Fund, which was was launched in August and was up 0.64 per cent in its first month, despite August being one of the most volatile months in recent years.
The manager of the fund, Stillwater Capital, expects to see continued positive returns from the managers in the portfolio, who are reporting a large increase in excellent lending opportunities resulting from the pullback of loans by the banks.
The Matrix Asset Based 2 Closed End Fund will invest all of its assets in the retail sterling shares of the Matrix Open Ended Asset Based 2 Fund. The investment objective of the fund is to achieve capital appreciation and consistent returns over the medium term with low correlation to major stock and fixed income market indices by investing in a portfolio of underlying funds that employ asset-backed investment strategies.
The Matrix Open Ended Asset Based 2 Fund is a fund of funds investing in 28 underlying asset-based lending managers that self-originate and self-underwrite all the loans in their portfolios.
These funds compete with regional banks to provide flexible one-stop financing for middle range companies. The fixed rate of interest generated by the loans they make gives superior non-correlated risk-adjusted returns to investors, enabling the Matrix fund to provide low correlation to all other asset classes including hedge funds.
The new fund will be the third closed-ended fund in the Matrix range, following the Matrix Horizon Closed End and Matrix Max Closed End funds. It allows UK investors to participate in the returns from Matrix Asset Based 2 Fund within a structure where gains will be charged as capital gains rather than income.
The fund requires a minimum investment GBP50,000 and is suitable for UK Self Invested Personal Pension Plans and Small Self-Administered Pension Schemes as well as offshore bonds. It invests in the retail share class of Matrix Asset Based 2 Fund, which has an initial charge of 5 per cent and an annual management fee of 1.9 per cent, with 0.4 per cent trail for advisers. There is no double charging of management fees.
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