Investment Objective
The investment objective of the Chenavari Toro Income Fund Limited is to generate attractive, risk-adjusted returns, through investing, and in some cases, trading opportunistically, in structured credit markets or asset backed transactions via three sub-strategies: Public Asset Backed Securities, Private Asset Backed Finance and Direct Origination
Investment Strategy
Public ABS strategy: The Company will opportunistically invest or trade in primary and secondary ABS markets to seek out opportunities that aim to unlock significant value from ABS investments that the Portfolio Manager considers to be mispriced by the market relative to their intrinsic value
Private Asset Backed Finance strategy: Through the Portfolio Manager, the Company will leverage on the extensive relationships it has with European Banks and retail credit firms in order to gain access and invest in private asset backed finance transactions that are otherwise unlisted and difficult to source
Direct Origination strategy: The Company will primarily invest, on a buy-to-hold basis, in originators of securitisation vehicles by retaining the requisite retention securities in such vehicles, pursuant to the relevant risk retention requirements in the EU or the US. This strategy benefits from a liquidity premium and ‘alpha’ by participating in the origination, as well as enhanced economics on the retained interests, with further added value derived from the team’s sourcing and structuring capabilities. Additional investment opportunities may also include providing warehouse credit facilities
Key Characteristics
| Fund type | Closed-end Investment Company |
| ISIN | GG00BWBSDM98 |
| NAV (monthly) | EUR 0.9862 as of 31 July 18 (published on 22 August 18 on our website) |
| Market Cap | EUR 248.5m as of 13 December 2018 - see Bloomberg or LSE website for live update |
| Currency | Euro |
| Net target return | 9 – 11% net annually |
| Mgt/perf fees | 1% mgmt. + 15% perf with a high watermark |
| Inception date | 8 May 2015 |
| ISA and SIPP eligibility | Yes |
| Domicile | Guernsey |
| Listing | LSE, Market: Main Market – SFS (Specialist Fund Segment). |
| Trading Segment: SFM2. Official List of the International Stock Exchange. |
Key Parties
| Portfolio manager | Chenavari Investment Managers |
| Investment manager | Carne Global AIFM Solutions Limited (who have delegated the portfolio management to Chenavari Investment Managers) |
| Corporate broker | JP Morgan Cazenove |
| Administrator | Estera Administration (Guernsey) Limited |
| Sub-administrator | US Bank Global Fund Services (Ireland) Ltd |
| Custodian | JPMorgan Chase Bank, National Association, Jersey Branch |
| Registrar | Link Asset Services |
| Auditors | Deloitte LLP |
| Share classes | Euro share class |