Secured finance is an investment opportunity for institutional investors that requires specialised investment expertise (in comparison with traditional credit investing) in order to exploit the 'complexity premium' available. It is also necessary to be very clear around the expected returns available from this asset class at outset in order to structure a portfolio which is linked to secured assets with attractive structural protections.
Insight's secured finance team and investment process offers clients
- Expertise: Specialist skills and experience in sourcing, researching, structuring and investing in secured finance opportunities to exploit the 'complexity premium'. Read about our team here.
- Opportunity: Deal sourcing from a diverse array of sources, including from the evolving private market which may not be accessible to many investors. Read about the drivers of returns in secured finance.
- Quality: A focus on high quality, lower risk opportunities often secured against senior-ranked assets
- Risk control: A rigorous approach to risk management, including control over lending risk, loan structure and security package
We believe we can offer investors reliable cashflows generated within an investment-grade portfolio which aims to provide a yield of 4% pa* over 3-month GBP Libor (gross of fees and expenses) over rolling three-year periods.
Access can be via a pooled fund* which provides investors access to a diverse array of exposures, or alternatively we can create segregated portfolios where we tailor the return stream to meet individual client needs and, if required, manage the portfolio on a hold-to-maturity basis.
*This is not a guarantee, may not be achieved and a capital loss may occur. Funds which have a higher performance aim generally take more risk to achieve this and so have a greater potential for the returns to be significantly different than expected.
Investors should note that the Fund is open-ended with limited liquidity. In particular, potential investors should understand that the Fund provides for quarterly repurchases subject to the notice periods and other conditions set out in the prospectus. Repurchases may be restricted at any level deemed appropriate to protect the interests of investors. Investment in the Fund may be appropriate for Qualifying Investors who have knowledge of this type of financial product and are willing to set aside capital for at least five years.
Please note the value of investments and any income from them will fluctuate and is not guaranteed (this may be partly due to exchange rate fluctuations). Investors may not get back the full amount invested. Past performance is not a guide to future performance.
Any losses in the fund will be borne solely by investors in the fund and not by BNY Mellon (including its affiliates); therefore BNY Mellon's losses in the fund will be limited to losses attributable to the ownership interests in the fund held by BNY Mellon and any affiliate in its capacity as an investor in the fund or as beneficiary of a restricted profit interest held by BNY Mellon or any affiliate.
Ownership interests in the fund are not insured by the FDIC, are not deposits, obligations of, or endorsed or guaranteed in any way, by BNY Mellon. Neither BNY Mellon nor any of its controlled affiliates (which includes the fund's general manager/ managing partner/ investment adviser), may directly or indirectly, guarantee, assume, or otherwise insure the obligations or performance of the fund or of any other covered fund in which the fund invests.
Investors should read the fund's offering documents before investing in the fund. Information about the role of BNY Mellon, its controlled affiliates, and their employees in sponsoring or providing services to the fund are described in the Volcker Rule section of the offering documents.