MAS names sustainability head; Malaysia’s EPF appoints COO and CFO; GIC PE head for SEA leaves; State Super hires new exec; Hesta appoints chief growth officer, chief Debby Blakey appointed to corporate governance board; ex-BlackRock exec joins IQ-EQ in Singapore; HSBC AM builds direct real estate team; ex-Vanguard head of distribution joins LGIM; Sanne names Singapore head; and more
The first note closes on May 1, postponed by a month due to strong demand out of Japan and other locations, says NewHaven Chairman David Humphreys. A major reason for Lake Shore to seek principal protection on its existing fund was to make it attractive to Asia-based investors, who now make up a negligible portion of Lake ShoreÆs investor base. Lake Shore currently manages around $1 billion.
The Lake Shore Alternative Asset Fund I has returned 23.75% per annum since January 2003, versus around 16% for the S&P 500 Index. The firm has a 12-year investment history and average compound annual performance of over 20%.
Now, Nomura is underwriting a participation note that covers 80% of the fundÆs NAV. There is no fee to the investor although there is a 1.5% annual redemption charge on the note. Lake Shore charges no entry or exit fees for its funds; it charges a 25% performance fee beyond a highwater mark. Lake Shore offers weekly liquidity.
NomuraÆs fees are generated solely from trading performance and investors can opt to invest without the guarantee. The guarantee is perpetual and the fund is open-ended. Minimum investments are $100,000.
Humphreys adds that if an investor wants other types of protection than the Nomura note, it can be arranged, although it may involve an additional cost.
Lake ShoreÆs first fund covers futures listed on US exchanges. It also has a second fund that deals with futures from European bourses, plus some futures in oil and gold. Now the firm is preparing to launch a third fund covering listed futures in Japan, Korea, Hong Kong and Australia. NewHaven will also market this to clients in the Asia-Pacific region.
If the principal-protection note feature is a success on the US version, Lake Shore may expand this to its other funds, Humphreys says.
NewHaven receives no commission from Lake Shore, but is paid based on the fundÆs performance, so it has very low distribution costs and no incentives to churn customers, he adds.
NewHaven originated two years ago as an idea between Humphreys, who had run HSBCÆs regional pensions efforts, and Alistair Macleod and Daryl Evans, both formerly of the VIG Group. Its initial business was (and remains) marketing United States-based pools of senior life insurance settlements. Last year it teamed with two organisations in the United Kingdom involved in litigation finance to securitise these loans.
The AU$85 billion ($61.6 billion) Australian super fund has some exposure to indebted property developer Evergrande. Meanwhile, China’s construction finance is part of its core strategy in real estate.
Investors are seeing the risks, but also the opportunities of the logistics sector. Warehousing their fears for the moment, they can see it's a good conduit to high-growth assets.
Insto roundup: GPIF staff say J-Reits more attractive than traditional assets; Hong Kong's strict Spac criteria
EISS Super hit by another scandal; China's CSRC launches consultation on disclosure requirements for new BSE securities; Hong Kong issues consultation paper on Spacs; New World Development partners with China Taiping to focus on Greater Bay Area projects; GPIF employees say Japanese Reits have grown more attractive; Taiwan's BLF invites bid for $1.7 billion mandate; and more
SGX’s new framework for Spacs will likely provide investors with a much-needed channel for direct deals, but the verdict is still out on whether it will bring liquidity to the bourse.