The asset manager with around $600 million under management, which also offers advisory and discretionary wealth management services, is redomiciling its flagship fund to Singapore.
Singapore-based Mindful Wealth is redomiciling its Avenida CLO Equity Fund from the Bahamas to Singapore, following its completion of the Variable Capital Companies (VCC) pilot program, the boutique wealth manager said in a statement on Tuesday.
Launched in March 2016, the fund focuses on the equity tranche of collateralized loan obligations (CLOs), and has around $80 million under management. It invests in CLO equity, CLO lower-rated tranches (generally BB) and CLO warehouses with a portfolio consisting of only US CLOs denominated in USD. According to Mindful Wealth, it has returned 32.37 percent since its inception.
«CLOs are a relatively unknown sub-asset class, meaning the market is ripe for the discovery of a niche solution to a difficult global low rate environment,» said Massimo Paschetto, who manages the fund.
Singapore Courts Funds
To position Singapore as a leading fund domiciliation hub, the city-state introduced the Variable Capital Companies (VCC) framework in January 2020 to cater to the needs of global investment funds and investors, and a grant scheme to encourage industry adoption.
The framework allows fund managers to have greater flexibility in share issuance/redemption and the payment of dividends. Managers will also be able to incorporate multiple funds in a single VCC to save costs.
«The VCC model introduces a level of operational efficiency that can improve the efforts of fund managers to maximize investment opportunities. We are delighted that Avenida is part of the new model,» Alberto De Micheli, Mindful Wealth principal representative and senior financial advisor, said in the statement.
