JADE ROAD INVESTMENTS LIMITED Q1 | Q2 | Q3 | Q4 | Total | ||
2020 | 0.63%* | 1.32% | 2.61% | 4.62% | ||
USD Sub-Class Fixed | 2021 | 2.12% | 2.19% | 0.00% | 3.70% | 8.22% |
Return Aggregate** | 2022 | 2.16% | 2.93% | 2.20% | 2.19% | 9.81% |
2023 | 0.73% | 0.73% | ||||
2020 | 1.84%* | 1.84% | ||||
EUR Sub-Class Fixed | 2021 | 1.80% | 1.82% | 0.00% | 3.08% | 6.84% |
Return Aggregate*** | 2022 | 1.80% | 2.45% | 1.84% | 1.85% | 8.18% |
2023 | 0.62% | 0.62% | ||||
2020 | 1.08%* | 2.20% | 3.33% | 6.74% | ||
Total Fund (USD) All | 2021 | 6.32% | 5.59% | -3.80% | 5.72% | 14.16% |
Classes **** | 2022 | 1.90% | 8.83% | -0.17% | 1.41% | 12.27% |
2023 | 4.67% | 4.67% |
- Returns are for a partial quarter as the fund was launched in June 2020 and the returns are through March 2023 only. **Time-weighted return of all USD Fixed Return Series since Fund inception (net of fees and expenses).
***Time-weighted return of all EUR Fixed Return Series since Fund inception (net of fees and expenses). - Time-weightedreturn of Total Fund since Inception (net of fees and expenses)
PLEASE NOTE: Aggregate refers to the aggregate of all series of the Class.
Coverage | Percent |
Estimated Annual Underlying Income as % of Fixed Return Shares | 10.20% |
Estimated Income Coverage of Fixed Return | 122.93% |
Estimated Hard Asset Coverage Of Fixed Return Investors' NAV | 90.78% |
Loss Absorption Shares as a % of Fixed Return Shares | 18.66% |
The Fund had a solid start to 2023, delivering a 4.67% net return in USD and 2.79% net return in EUR. This was a substantial outperformance over the Absolute Return and Real Return benchmarks, although the Composite Benchmark did even better than the Fund. The Fund maintained a material outperformance against all benchmarks in both currencies both trailing twelve months and since inception.
The Fixed Return Sub-Class of shares earned 0.73% net in USD and 0.62% net in EUR. This was below the Fund's total performance as no return was earned for the months of February and March, with the Loss Absorption Shares absorbing the losses in those months on behalf of the Fixed Return shares. It is anticipated that this return will be caught up in Q2. Despite this, the USD series maintained a substantial outperformance of the investable benchmarks, while the EUR series maintained its outperformance against both the investable benchmarks and the real return benchmark.
Litigation Finance led the Fund's positive performance in the quarter, delivering a 13.67% contribution. This was primarily due to the sale of a part of one of the Fund's financings for materially above its previous carrying value.
On the flipside, Hedging detracted from the Fund's return by 9.39%. This is due largely to the Fund carrying a substantial market hedge position, which performed poorly as the markets drove higher in Q1. Hedging is designed to provide substantial protections in the event of a market downturn.
The majority of the Fund's other positions continued delivering consistent performance, with Equipment Leasing (+0.82%), Agriculture (+0.46%), Infrastructure (+0.19%), Real Estate (+0.18%), Asset-Backed Lending (+0.18%), and Liquid Yielding (+0.02%) all contributing solidly.
Losing baskets included the Fund's currency overlay (-1.17%), which fell along with the USD; Energy (-0.10%) and Special Situations (-0.24%) which is comprised primarily of a listed investment fund that Heirloom (including participation by the Fund) took control of in February as a deep value investment, but that also included a tax charge related to an investment that was sold at a profit in 2022 and had a higher tax assessment than was expected.
Overall we are very happy with the positioning of the Fund. Though our hedges affected us heavily in Q1, we continue to believe that hedging our market and economic exposure is the prudent course for the Fund. Though the Fund does not have much direct equity market exposure, ultimately we believe that a recession is coming that will harm the value of many assets.
The liquidity position of the Fund is strong. We expect to continue to stay quite liquid to allow us to take advantage of dislocations that may occur if a recession hits and/or the market falls.
The Fund maintains strong asset-backing, with Fixed Return Shares effectively being greater than 90% asset- backed - this will increase even further in Q2 as we increase the insurance coverage against the marked-up litigation finance values. The Fixed Return is fully supported by the 10.2% estimated income attributable to it from investments, while the 18.7% Loss Absorption layer adds extra comfort in the security of these shares.
We hope that you are pleased with your Fund's performance during Q1, and we are working hard to continue to be able to deliver strong quarters for the foreseeable future.
60.54% | 60.54% | 71.84% | |
12.12% | 12.12% | 14.38% | |
0.60% | 0.60% | 0.71% | |
6.48% | 3.24% | 3.85% | |
20.26% | 0.00% | 0.00% | |
100.00% | 76.50% | 90.78% | |
% of Portfolio NAV Expected to
be Liquid Within Time Period | 33.90% | 40.88% | 57.69% | 77.22% | 94.33% | 5.67% |
Without Material Cost | ||||||
External Investors (as % of | ||||||
Fund) With Redemption | 9.03% | 53.39% | 64.87% | 75.27% | 85.69% | 0.00% |
Notice Periods Within Time | ||||||
Period | ||||||
% of External Investors that | 100.00% | 76.57% | 88.93% | 100.00% | 100.00% | 100.00% |
Could Be Redeemed Without | ||||||
Material Liquidity Cost | ||||||
USD Fixed | EUR Fixed | Total Fund | |
Return Class | Return Class | USD | |
Contribution to | |||||||||||||
Position | Fund Return | ||||||||||||
Net Asset Value | Delta-Adjusted Notional | (Money-Weighted)* | |||||||||||
% NAV | US$ ('000s) | % NAV** | US$ ('000s) | QTD | YTD | ITD | |||||||
Agriculture - Farm Business | 7.80% | 1496.14 | 7.80% | 1496.14 | 0.46% | 0.46% | 3.37% | ||||||
Banking Dislocation | 0.66% | 127.45 | 0.66% | 127.45 | 0.03% | 0.03% | 0.01% | ||||||
Canadian Natural Gas Producers | 0.50% | 95.32 | 0.50% | 95.32 | -0.12% | -0.12% | -0.06% | ||||||
Cash & Equivalents | 16.95% | 3251.65 | 0.00% | 0.00 | 0.28% | 0.28% | 0.13% | ||||||
Currency Overvaluation - G10 | -25.43% | -4878.13 | -25.43% | -4878.13 | -0.99% | -0.99% | -0.88% | ||||||
Currency Undervaluation - G10 | 9.43% | 1808.64 | 9.43% | 1808.64 | -0.16% | -0.16% | 0.43% | ||||||
Developing Market - Active Managers | 0.55% | 105.38 | 0.55% | 105.38 | -0.12% | -0.12% | 0.10% | ||||||
Dry Bulk Shipping | 1.65% | 316.80 | 1.65% | 316.80 | 0.29% | 0.29% | 0.36% | ||||||
Expenses & Tax | -0.40% | -76.23 | 0.00% | 0.00 | -1.11% | -1.11% | -2.07% | ||||||
Fixed Income | 0.42% | 81.15 | 0.42% | 81.15 | 0.01% | 0.01% | 0.00% | ||||||
Hedge - FX | 11.35% | 2176.25 | 11.35% | 2176.25 | 0.47% | 0.47% | -1.50% | ||||||
Hedge - Market | 3.99% | 765.90 | -33.50% | -6426.14 | -9.86% | -9.86% | -3.64% | ||||||
Helicopter Leasing | 18.62% | 3571.09 | 18.62% | 3571.09 | 0.26% | 0.26% | 2.36% | ||||||
Helicopter Loans | 2.57% | 493.39 | 2.57% | 493.39 | 0.12% | 0.12% | 0.45% | ||||||
Infrastructure - Clean Energy | 0.81% | 154.71 | 0.81% | 154.71 | 0.21% | 0.21% | 0.14% | ||||||
Jade Road | 0.39% | 75.48 | 0.39% | 75.48 | -0.02% | -0.02% | -1.45% | ||||||
Life Settlements | 0.01% | 2.27 | 0.01% | 2.27 | 0.01% | 0.01% | 0.01% | ||||||
Liquid Yielding | 0.39% | 75.08 | 0.39% | 75.08 | 0.01% | 0.01% | 0.29% | ||||||
Listed Infrastructure | 0.13% | 24.27 | 0.13% | 24.27 | -0.08% | -0.08% | 0.80% | ||||||
Listed Loan Providers | 0.18% | 34.62 | 0.18% | 34.62 | 0.00% | 0.00% | 0.48% | ||||||
Litigation Finance | 18.65% | 3576.43 | 18.65% | 3576.43 | 14.91% | 14.91% | 8.43% | ||||||
Mortgage Backed Loan Funds | 5.87% | 1125.95 | 5.87% | 1125.95 | 0.05% | 0.05% | 0.55% | ||||||
Music Royalties | 1.59% | 305.88 | 1.59% | 305.88 | -0.03% | -0.03% | 0.05% | ||||||
Oil Market Dislocation | 0.68% | 130.34 | 0.68% | 130.34 | 0.03% | 0.03% | 0.25% | ||||||
Oil Storage | 0.76% | 145.63 | 0.76% | 145.63 | 0.06% | 0.06% | -0.07% | ||||||
Precious Metals | 0.24% | 46.55 | 0.24% | 46.55 | -0.02% | -0.02% | -0.80% | ||||||
Real Estate - Europe Residential | 3.44% | 659.75 | 3.44% | 659.75 | -0.08% | -0.08% | -0.04% | ||||||
Real Estate - Hospitality | 9.04% | 1734.68 | 9.04% | 1734.68 | 0.07% | 0.07% | 0.02% | ||||||
Real Estate - Residential | 0.04% | 7.45 | 0.04% | 7.45 | 0.00% | 0.00% | 0.00% | ||||||
Real Estate - US Single Family | 7.18% | 1377.37 | 7.18% | 1377.37 | 0.18% | 0.18% | 0.96% | ||||||
Real Estate Hospitality | 0.35% | 67.20 | 0.35% | 67.20 | 0.01% | 0.01% | 0.00% | ||||||
Special Situation - Deep Value Publicly Listed | 0.10% | 20.00 | 0.10% | 20.00 | 0.01% | 0.01% | 0.00% | ||||||
Specialized Shipping | 0.92% | 176.85 | 0.92% | 176.85 | 0.27% | 0.27% | -0.15% | ||||||
Uranium | 0.55% | 105.07 | 0.55% | 105.07 | 0.00% | 0.00% | 0.16% | ||||||
Total | 100.00% | 19180.38 | 45.95% | 8812.91 | 4.59% | 4.59% | 13.58% | ||||||
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Jade Road Investments Ltd. published this content on 15 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2023 05:39:09 UTC.
