View more on these topics

Matrix avoids the crunch

Matrix Group says its recently launched asset-based Fund 2, a fund of hedge funds, has held up well during the credit crunch because it invests in asset-based lending managers and avoids asset-backed securities.

The fund, which invests in a hedge fund portfolio managed by Stillwater Capital Partners, rose by 0.64 per cent in August and 1 per cent in September.

Matrix says the outlook for asset-based lenders is stable because the loans they make to small and medium-sized companies are secured against their assets, which have a higher value than the loan. It says the only variable factor is the interest payments on the loan.

Fund 2 can invest in asset-backed securities, which are tradable on secondary markets, but Stillwater is avoiding this area as it is unsure whether the impact of the credit crunch has further to go.

Matrix managing director Bridget Guerin says: “Until July and August, asset-backed securities had been trading as if the assets were on a par but when the credit crunch came, everyone was trying to sell them. Prices were being marked down whether the collateral was terrible or gold-plated. A lot of hedge fund managers are saying there is cheap paper out there but the question is whether it is going to get cheaper.”

Recommended

NICs increase will hit lower income earners

The rise in National Insurance Contributions under the Treasury’s rates and allowances for 2008/09 means that lower income earners will feel the pinch next year, according to Grant Thornton.

Aegon has no plans to follow L&G lead on disclosure

Aegon Scottish Equitable says it is unlikely to follow Legal & General and abolish consumers’ requirement to disclose changes to their circumstances between the application process and the policy going live.Aegon says it has an older client base than L&G and a significant amount of the claims it declines are rejected due to non-disclosure before […]

Investment Forum

Position Portfolios for a Changing China, Accelerating Disruption and More Political Discourse Is China an asset class? Why Investors’ Understanding of China is Changing How is disruption changing the way we invest? Established Ways of Doing Business Are Being Challenged What to Watch: Why politics matters more than ever in 2017 Key takeaways: Despite volatile […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com