Fund Information / Factsheet • May 14, 2013
Fund Information / Factsheet
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Corporate | 14 May 2013 14:11
DF Group to launch its innovative trade finance fund concept before the end of Q2
DF Deutsche Forfait AG / Key word(s): Strategic Company Decision
14.05.2013 / 14:11
DF Group to launch its innovative trade finance fund concept before the end of Q2
– DF Deutsche Forfait AG pioneering a new asset class
– Regulatory approval for the licence has been granted
– Investors show strong interest in the run-up to the launch
Cologne, 14 May 2013 – DF Deutsche Forfait AG is well on track to reach the time targets it has set itself for the launch of an export receivables fund. ‘We will start marketing our first trade finance fund before the end of this quarter and will thus launch an entirely new asset class,’ says Marina Attawar, member of the Board of Management of DF Group. Last week the last outstanding licence approval from the relevant supervisory authorities was obtained by Deutsche Kapital Limited, the Dubai-based wholly-owned DF subsidiary which will be responsible for asset management and marketing of the trade finance funds. DF Deutsche Forfait AG will thus establish a second source of income besides the revenues from the existing forfaiting business.
Being a niche player and foreign trade finance specialist focusing on the Emerging Markets, DF Group’s entry into the trade finance funds market will expand its present focus on the acquisition of trade receivables and their subsequent placement with individual investors – for good reason: declining returns on bonds issued by countries and corporations with top credit ratings are putting investors in fixed-interest investments under enormous pressure. Market research conducted prior to the launch of the fund has shown that investors across the globe are looking for assets generating a higher return than government and corporate bonds while offering a comparable risk exposure; at the same time investors prefer instruments which are based on real goods transactions rather than on pure financial market creativity. Against this background, DF Group sees itself in a promising position to recruit entirely new investor groups who have so far had no access to the asset class of foreign trade / trade finance receivables; institutional investors have indicated great interests, as have family offices and asset managers.
‘Our product is designed for low volatility and relatively high yields, which generally exceed those of conventional asset classes. This reflects the fact that our fund is based on real cross-border trade transactions, which will continue under all market conditions and pose a low risk,’ says Steve Hefft, who will run the funds business together with his colleagues.
The trade finance fund concept addresses professional investors (institutions such as insurers and pension funds) as well as banks. While professional investors will be able to invest directly in a trade finance fund, banks can offer their customers own-branded trade finance funds managed by Deutsche Kapital Limited. The first fund will initially amount to approximately EUR 50 million and will reflect a mix of trade finance transactions weighted by regions. ‘Especially in the Gulf states and the Middle East in general we have identified particularly strong interest in our new, alternative investment product, which offers an attractive risk/return profile,’ says Marina Attawar, adding that ‘more funds will follow, which will primarily be targeted at investors in other regions.’
About DF Group
The main business activities of DF Group are the purchase and sale of selected export receivables in emerging markets on a non-recourse basis. The objective is to sell the acquired receivables at the same time or in the short term. Forfaiting is an increasingly important tool in export financing, with volumes rising in line with the continuing advance of globalization. Creating tradable products from receivables benefits both exporters and buyers. As well as transferring risk to the buyer, the main benefit of forfaiting for exporters is the inflow of cash. This relieves the exporters’ credit lines and improves their balance sheet structure. DF Deutsche Forfait AG structures receivables attractively, so that investors seek them as a type of investment.
DF Deutsche Forfait AG
Christoph Charpentier
Kattenbug 18 – 24
50667 Cologne
T +49 221 97376-37
F +49 221 97376-60
http://www.dfag.de
End of Corporate News
14.05.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
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| Language: | English |
| Company: | DF Deutsche Forfait AG |
| Kattenbug 18-24 | |
| 50667 Köln | |
| Germany | |
| Phone: | +49 (0)221 – 973 76 0 |
| Fax: | +49 (0)221 – 973 76 76 |
| E-mail: | [email protected] |
| Internet: | www.dfag.de |
| ISIN: | DE0005488795 |
| WKN: | 548879 |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart |
| End of News | DGAP News-Service |
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| 210999 14.05.2013 |
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