INVESTMENT OVERVIEW

The First Guardian Trade Finance Fund is based on seeking attractive returns from trade finance transactions within Australia and select Asian markets. Each investment will be allocated to a loan or portfolio of loans, with unique terms and conditions reflecting the risk profile and trade circumstances of each borrower.

The Fund offers two investment accounts for investors, with aim of our investment accounts is to protect your capital, whilst producing regular, reliable income.

In managing this strategy, First Guardian adheres to the following investment principles:

  • Portfolios are managed based on the firm view that strong, consistent returns are driven by a disciplined credit culture and a systematic investment process. Trade finance transaction selection is based on a detailed financial assessment, and availability of sufficient security.
  • The preservation of principal and protection against downside risk plays an important role in the investment process. The Fund has a high level of industry and issuer diversification.

Investment deals that do not meet FGC’s internal compliance and risk management metrics and loan to valuation ratios (“LVR”) are automatically rejected.

Our fundamental analysis will be complemented by its in-house macroeconomic insights as they relate to index items such as:

  • Counterparty risk (Borrower, supplier, end purchaser)
  • Market risk
  • Transaction risk

Each borrower will be duly credit assessed and provide a credit rating based on the the Fund’s in-house index matrix.

The First Guardian Trade Finance Fund Grading Index is the primary assessment tool used to determine the credit worthiness of the borrower and the viability of the marketplace and the transaction itself.

The Index allows the Fund to provide robust and repeatable assessment outcomes. The benefit of this is the comprehensive manner in which parties and transactions are understood and duly rated. The Index is custom designed for import and export transactions, and provides custom reports based on a weighting system.

The Index is based on the following parameters:

A detailed assessment will be made of each Borrower’s underlying business prospects, borrowing requirements and uses, capital structure, collateral, enterprise value, liquidity and management quality.

The Fund will invest in a wide range of trade finance transactions, this includes:

  • Supplier credit;
  • Import export credit;
  • Purchaser credit; and
  • Inventory and receivables finance.