Atlantic Credit Enhanced Guaranteed Fund

Ashburton's Credit Enhanced Guaranteed Fund is an actively managed unlisted debt fund investing in commercial organisations that provide positive and sustainable returns, predominantly in the affordable housing, agriculture, education and health care sectors. The Fund seeks to provide a measurable positive impact on society by ensuring that the investments also deliver a high social impact. These positive impact results will include tracking job creation, a consequence of which the Fund has secured a partial first loss capital guarantee from the Jobs Fund program (as overseen by the SA Government's National Treasury). Our fund management skill lies in identifying attractive, investment grade yield enhancement opportunities in a relatively untapped universe. Recent changes to the Pensions Fund Act (Regulation 28) give institutions greater scope to consider alternative investment opportunities and thus serve to unlock value in the large potential universe of unlisted corporate credit.

Financial description

We believe that a combination of identifying inefficiency in market pricing and a thorough focus on valuation yields positive sustainable returns. The Fund’s performance target is CPI +3% on a rolling 3- year term. The return profile is expected to be stronger than the All Bond Index, while volatility is demonstrably close to cash and offers investors a less volatile investment than funds with similar levels of risk.
By investing in intermediary companies who seek expansion capital to promote economic growth, the fund will also explicitly measure social and environmental impact.