Oceana Australian Fixed Income Trust
Objective
With a 9-year track record, the Oceana Australian Fixed Income Trust (OAFIT) provides exposure to Australian private credit via the un-correlated short-term invoice and trade finance asset class and short-term lending exposure to SME’s and corporates. The Trust offers: 1. 60-day liquidity and monthly distributions 2. Asset-backed Loans, predominantly investing in: Supplier & Invoice Financing (~75% plus of the ~AU$1.6bn FUM) 3. 5-year note structure locking in 5 years of Monthly Income at pre-agreed rates: A Note pays 8%, B Note pays 9.5%, C Note pays 11% 4. Capital protection also included with $200m Trade Credit Insurance annually covering ~75% of the book
People
Headquartered in Sydney since 2016 with offices in London and Manila, the team is highly experienced in SME, corporate lending and trade and debtor finance, underwriting and credit risk management. Their LP list includes leading global allocators including Apollo IM, Michigan Employees Retirement System, BlackRock Alternatives and Munro Partners.
Research Rating
SQM Superior 4.25 Star Rating: SQM Research considers the Fund has substantial potential to outperform over the medium-to-long term. Past returns have tended to be strong. PDS compliance processes are high-quality. There are no material corporate governance concerns. Management is of a very high calibre.
Investment Philosophy
The Fund applies the principles of securitisation across the private debt sector and is unique in its value proposition by providing access to a range of private debt investments including, invoice and supplier finance, corporate lending, and SME loans, within a risk-mitigated strategy. It offers first-loss protection and credit enhancement to all investors across its capital structures with the principals participating in the first-loss piece of the structure and further supported by QBE and Allianz via Insurance coverage.
The rating contained in this document is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.
