Oct 10, 2017 - TF Briefing. Short version. Graphs 1 & 2. Source: ICC Trade Register Report 2016. Trade finance funds
10 October 2017
TF Briefing Short version
Trade finance funds Recently, a Middle Eastern investment bank, Rasmala, revealed that a trade finance fund it launched three years ago had surpassed the $100 million mark in volume. Although the news is a significant milestone for the bank, it also brings into focus the growing interest from non-bank investors in trade finance assets. Following regulatory changes after the financial crisis, many banks have scaled back their trade financing. But the investment appeal of trade finance has remained similar, leading to an increased amount of non-bank providers of finance. Trade Finance estimates that more than 20 companies manage funds that include trade finance products as a significant part of their portfolio. Several have been created in the recent past. EFA Group, for example, the Singaporean asset manager, runs several different trade finance-focussed funds. Its latest, the Supply Chain Finance Fund, was launched in July this year and has targeted an annual return of between 6% and 8%. Loans issued by the fund will be offered to Asian SMEs in sectors as diverse as IT, media, pharmaceuticals and electronics. Meanwhile Federated Investors launched its own Project and Trade Finance fund in early 2017. The closed end fund invests primarily in emerging markets and managed a $72 million portfolio as of September. Its top holdings include Banco Do Brasil, Ecobank, Afreximbank and Turk Exim Bank. Readers will be well familiar with the arguments in favour of trade-based assets: investments are generally short-term...Read more See Trade Finance's H1 2017 League Tables here
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Graphs 1 & 2 Source: ICC Trade Register Report 2016
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