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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.

James Sellon
James Sellon
Jame is a Managing Partner of MASECO Private Wealth and is considered an expert in US/UK investments and has a deep understanding of the complexities that arise when advising US citizens with multiple tax reporting requirements.

james.sellon@masecopw.com

Back to opinions
July 10, 2016
James Sellon

Why I think we are in a unique position

As I sit here in mid-2016, I see a macro picture unlike any other in my career.  The conundrum facing CIOs and institutional investors is how to allocate in an environment of low to negative interest rates.  These low rates are a function of extraordinary easing of monetary conditions by global governments in a manner never seen before.

The future expected returns for asset classes are fundamentally different to the returns experienced over the last 30 years, as we have finished the steady move down of global interest rates.  Without this wind on one’s back, the historical returns are impossible to replicate.

With this backdrop, CIOs and institutional investors have to shake up their traditional asset allocation copy book.  They are nudging their allocation from the public to the private market in equity and debt.

There has to be a mind-set change amongst investors that most do not require 100% liquidity on their capital, 100% of the time. It is also perfectly reasonable to expect to earn an additional return for the give up in liquidity.

I believe that the private debt market is in its embryonic stages of development and parallels can be drawn to the disruption of the telecoms industry over the last 25 years and the development of the hedge fund space during the turn of the century. Casting our minds back 15 years, it took time for the market to categorise different hedge funds into sub-asset classes. It then took time to realise that these sub strategies could be recreated using low cost investment vehicles, to capture the beta that they were dressing up as alpha.

Currently the industry is searching for a name, is it Alternative Credit? Is it Direct Lending? Or could it be Private Debt?  No matter the name, I believe that asset class will become as mainstream as hedge funds are today. I believe that as a result of FinTech innovation, efficiencies will be drawn out of this asset class at breakneck speed.  What does this mean?  It means that there will not be Direct Lending fund managers buying up half of Mayfair, as happened in the early 2000’s, and instead those returns will be in their client’s hands.

The really interesting thing about investing in Alternative Credit is that different parts of the market are exposed to different macro risks.  What this means is that if one is careful in portfolio construction, one can really benefit from diversification.

April 12, 2016
Institutional Investors Increase Presence in Marketplace Lending Space
By Daniel Lanyon
June 4, 2016
Comparing the Big Three – What effect is institutional involvement having on Gross Lending rates?
By Daniel Lanyon
June 14, 2016
European Banks – the most amazing transition in a generation?
By Josh Matthews