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The Maseco Asset Management Limited website is intended for use only by knowledgeable and experienced investors who meet certain criteria.

MASECO Asset Management Limited (MAM) registered office at Leeward Management Limited Camana Bay, 9 Forum Lane, Suite 3119, PO Box 144, Grand Cayman KY1-9006, Cayman Islands. A limited company incorporated in the Cayman Islands with company number CE-357344 and registered with the Cayman Islands Monetary Authority (CIMA).

A “knowledgeable and experienced” investor could be an institutional investor, a professional investor or in the case of a retail investor an investor with sufficient knowledge and investment experience.

UK Resident Investors – Certified High Net-worth Investor Statement

You have throughout the financial year immediately preceding the date below had an annual income of £100,000 or more or held throughout the financial year immediately preceding the date below, net assets to the value of £250,000 or more.

Net assets for these purposes do not include the property which is your primary residence or any money raised through a loan secured on that property; any rights of yours under a qualifying contract of insurance; or any benefits (in the form of pensions or otherwise) which are payable on the termination of your service or on your death or retirement and to which you (or your dependants are), or may be, entitled.

You accept that the investments to which the promotions will relate may expose you to a significant risk of losing all of the money or other property invested.  That you are aware that it is open to you to seek advice from an authorised person who specialises in advising on non-mainstream pooled investments.

US Resident Investor – Accredited Investor Statement

As a US citizen you are an Accredited Investor as one of the following applies, you either have individual Income in excess of $200,000 in each of the last two calendar years or joint Income with a spouse in excess of $300,000 in each of the last two calendar years and reasonably expects to attain levels of Income this year at least equal to these amounts.[1] Or you have, and at the time of any purchase of securities of the Investment will have, an individual Net Worth, or the spouse and the investor currently has, and at the time of any purchase of securities of the Investment will have, a combined Net Worth in excess of $1,000,000.[2]

You accept that the investments to which the promotions will relate may expose you to a significant risk of losing all of the money or other property invested.  You are aware that it is open to you to seek independent advice.

Risk Warning

You should refer to the Prospectus, an Adviser and a Tax Specialist in each case before making any decision to invest in either of MAM’s Alternative Income Funds.

Past performance is not an indicator of future results.  Currency fluctuations may increase or decrease the returns of any investment.  The value of investments can fall as well as rise; you may not get back what you invest.  The funds have limited liquidity and so you should expect not always to receive back your capital in a timely manner, during this time the fund value may fall as well as rise.

Acceptance

By accepting these statements you confirm you have read, understood and you meet the conditions of the relevant category of investor.

1 Income means adjusted gross income, as reported for federal income tax purposes, increased by the following amounts: (i) the amount of any tax exempt interest income received; (ii) the amount of losses claimed as a limited partner in a limited partnership; (iii) any deduction claimed for depletion; (iv) amounts contributed to an IRA or Keogh retirement plan; (v) alimony paid; and (vi) any amount by which income from long-term capital gains has been reduced in arriving at adjusted gross income pursuant to the provisions of Section 1202 of the Internal Revenue Code.

2 Net Worth is the amount by which your total assets at fair market value exceed your total liabilities, with the following adjustments:

(i) the estimated fair market value of your primary residence is excluded from your total assets; (ii) the amount of any indebtedness secured by your primary residence up to the fair market value of such residence is not treated as a liability; (iii) the amount of any indebtedness secured by your primary residence that exceeds the fair market value of your primary residence is treated as a liability; and (iv) the amount of any debt secured by your primary residence incurred during the 60 days immediately preceding your purchase of any securities of the Company is treated as a liability (even if the estimated fair market value of your primary residence exceeds the aggregate amount of indebtedness secured by such primary residence), unless such debt resulted from the purchase of your primary residence during such 60 day period.

Josh Matthews
Josh Matthews
Josh is a Managing Partner and co-founder of MASECO Private Wealth. In 2008, he co-founded MASECO Private Wealth in the UK, followed in subsequent years by MASECO Switzerland and MASECO Asia in Hong Kong. Josh is also a seasoned expert in Alternative Credit and is the architect of the MASECO Asset Management multi-strategy Alternative Credit Fund.

josh.matthews@masecopw.com

Back to opinions
June 14, 2016
Josh Matthews

European Banks – the most amazing transition in a generation?

I was recently reading a PwC report entitled ‘Capitalising on the Acceleration in Bank Restructuring 2016’.  It was so enlightening that I thought I would share its findings.

Europe began their quantitative easing program around 18 months ago and as a result the European banks have begun a journey of deleveraging. This deleveraging means selling off non-core assets and reducing lending.

European banks hold €2.3 trillion worth of loans that they do not want, and around half of these are performing loans but not central to the banks’ strategies. Banks are looking to free up capital and concentrate on core business lines which will offer long term return on equity. PwC reckon that up to €1tn will end up trading as a portfolio transaction; and recent regulatory changes and the emergence of Alternative Credit funds will mean that these markets are opened up to independent investors for the first time.

A question PwC poses is – Are European banks viable?  According to them less than 10% of the largest 40 European banks were able to cover their cost of capital in the year to June 14. If banks can’t deliver shareholder returns they will become starved of investment in an area that is rapidly being transformed by technology and customer expectations.

Many argue that the problems faced by European banks are rooted in overcapacity, uncompetitive costs and dinosaur legacy systems. PwC believe that these resilient fixed costs will still be in play when banks are forced to reduce expenses by more than 30% to reach economic breakeven (where cost of equity equals return on equity).

Some have argued that the same disruption was seen in the telecoms markets 25 years ago. They believed that their historic barriers to entry would be enough to prevent their business model becoming disrupted and disintermediated by new entrants and technology.  Many of the traditional telecom operators have ended up becoming utilities, delivering steady risk adjusted returns but at significantly lower multiples than before.

April 12, 2016
Institutional Investors Increase Presence in Marketplace Lending Space
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Comparing the Big Three – What effect is institutional involvement having on Gross Lending rates?
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Why I think we are in a unique position
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