A UNIQUE PRODUCT

Providing investors access to yield within a risk mitigated strategy

What does the Oceana Australian Fixed Income Trust invest in?

 Underlying assets of the Fund are short term receivables, centred largely around invoice financing,
secured lending, SME loans, and supplier finance, utilising credit enhancement strategies.

 

Asset Categories

Invoice Financing
Invoice Financing
• Receivables related to client’s sale of goods and services on payment terms

• Up to 90% of the invoice value

• Fund exposure at or below insured amount

• Short duration of 30 to 90 days

• Highly diversified pool of obligors

Supplier Financing
Supplier Financing

• Program involves funding payments to trade creditors (suppliers)

• Typical short duration of 60 to 180 days

• Commonly applied to fund inventory or supplier offered early payment discounts

• Many programs covered by Trade Credit Insurance

Secured Lending
Secured Lending

•  Short term corporate funding arrangements

• Rigorous up-front and on-going due diligence for all exposures

• Fixed and variable repayment profiles

• Physical security protection arrangements as per Credit Policies

SME Loans
SME Loans
• SME loans not categorised as either invoice or supplier finance

• Smaller average loan size of 10-50k

• Duration up to 12 months

• Funding against future cash flows and factoring EFTPOS receivables

• Typically General Security Arrangement (GSA) in support of our loan

Enhancement through
Insurance and Structural
Subordination

Credit Enhancement

  • The Fund enhances the credit profile of its underlying investment portfolio via the use of insurance and Structural Subordination.
  • Trade Credit Insurance (TCI) is used to cover payment obligations arising in connection with business-to-business trade.
  • Structural Subordination also known as “first-loss” protection is available to all Noteholders, with a Series requirement minimum of at least 10%.
  • The Fund’s current TCI insurers are Allianz, AA rated and QBE, A+ rated.
  • Insurance and Structural Subordination are not used as substitutes for sound credit decisions, please see the Risk Management section of this website for further information.

The Oceana Australian Fixed Income Trust combines a global family office with the expertise of an exemplary Australian Fund manager

  • The Fund was founded by David Lewis and Brad Prout of Oceana Investments (Australia) Limited (“Oceana”) and First Class Funds Management Pty Ltd (“FCFM”).
  • Oceana is the Promoter and FCFM is the Manager.
  • Oceana has significant experience in the credit space, including structured finance and specialised lending as well as over 60 years’ experience of credit driven going concerns through investment in subsidiary companies.
  • FCFM has significant fixed income and credit portfolio management experience. FCFM’s CEO was involved with the early stages of the inflation linked bond markets and invention of what are some of today’s most popular annuity products.
  • The Fund operates under an Australian Financial Services Licence (AFSL 431245).

Contact us

For all enquiries, please call or email us

Oceana Australian Fixed Income Trust
Level 12, 50 Margaret Street
Sydney, NSW 2000 Australia

T: +61 2 9098 0888
E: info@oceana-funds.com