Prudent Investment Fund

Investment Opportunity

The Prudent Investment Fund (PIF) allows international investors the opportunity to invest into a short-term corporate lending business wrapped into a regulated, Luxembourg based, SICAV SIF. The Prudent Group has extensive experience in trade finance for small and medium sized companies in the Brazilian Market.

Prudent Brazil, acting as the Investment Advisor to the PIF, has a team of seasoned financial professionals in São Paulo and Porto Alegre sourcing borrowers, performing credit analysis, running the loan operation, conducting active risk mitigation and carrying out collections.
Presently, Prudent has a portfolio of more than 300 small and medium sized borrowers with a total over 10,000 end buyers, thus offering huge diversification in terms of sectors and industries.

 

Performance

Prudent is proud to announce that in its first seven years it has achieved steady and positive performance with zero losing months, and thus an extremely high Sharpe ratio. To receive the latest fact sheets for the funds, please write to our sales department at sales@egfe.com. Note that the fact sheets reflect performance of the fund after its becoming public in August 2014.
The NAV of Prudent Share class U4 is: $171.6389 (issued 21.09.2018). Follow on Bloomberg.

 

Investment Policy

The Investment Manager’s approach in selecting investments for the Fund is focused on individual company analysis. The Prudent Investment Fund seeks to provide investors with an excellent long-term capital appreciation or an attractive yield. Investments are made to take advantage of the earnings coming from the Fund’s investment in debt securities of companies, which the investment manager believes to offer an attractive risk/return ratio. The companies pledge their assets as security for the loan they receive. In this process it is essential to compare yields offered by other companies in the same and other industries, based on factors such as assets, sales, earnings, cash flow, growth potential and momentum.

 

Investment Funds

The Prudent Investment Funds offer investment opportunities to both individual as well as commercial investors.

Diversified Corporate Lending Fund (DCL): This fund lends working capital to businesses after a thorough assessment of their credit, ability to return the loan and possession of collateral. The fund receives payment from the end buyer once receivables are delivered, and then releases the rest of the funds back to the lender. This fund yields around 13% annually with a default rate below 1% (calculated into the returns). Investment in this fund requires a minimum of $10,000 (or €10,000).

Enhanced Yield Fund (Yield): This fund reaches out to large end buyers (such as Walmart, Carrefour and Toyota) requesting their top suppliers. They then offer suppliers working capital after thoroughly assessing their credit, ability to return the loan and possessing collateral. The fund then signs another agreement with the large end buyer, who insures the loan. This entire deal is then insured by Euler Hermes, a daughter company of Allianz. As with DCLF, the fund receives payment from the end buyer once receivables are delivered, and then releases the rest of the funds back to the lender.
This fund has the added benefit of backing by an insurance company, and thus is a safer investment than DCLF, with 0% default since inception in February 2017. The expected annual yield is 9%-10%. Investment in this fund requires a minimum of $250,000 (or €250,000).

 

 

The Fund Administration

Prudent Investment Fund is registered with CSSF Luxemburg, the custodian is ABN AMRO Bank, administration is dealt with by APEX Fund Services, the legal aspect is handled by Lextrust Law Firm and the auditor is Price Waterhouse Coopers.

 

Purchasing the Fund

Prudent Investment Fund is available for purchase at the bank with an ISIN number. For a full list of share classes and ISIN numbers in US Dollars and Euro, please contact our offices at: +972-3-7510090 or by email to: sales@egfe.com.

 

Awards

In March 2018, Wealth & Finance Magazine awarded The Prudent Group “Leading Hedge Fund Manager of the Year”. Click here to learn more.
The Prudent Group was awarded ACQ Magazine Gamechanger of the Year Award in 2017. Click here to learn more.
They were also awarded the prestigious “Hedge Fund Manager of the Year” award in 2016.  Click here to learn more.

For additional information about the fund, please view this presentation, or follow this link: Prudent Group.