2007

“Open Waters” Open-Ended

Combining worldwide shipping and banking expertise, Lloyd Fonds AG together with Oppenheim Pramerica formed the first open-ended shipping fund in the world called LF Open Waters OP (“Open Waters”) at the end of last year. Resident in Luxemburg, Open Waters takes the form of a Société d’Investissement à Capital Variable (“SICAV”), a structure which makes the fund open-ended and allows the return of shares to the fund to allow investors to realize their gains. With a SICAV, the purchase and redemption of shares leads to a “breathing” equity or a “constant IPO” structure, which means that the equity accounts will increase or decrease depending on the net trading activity. In short, the fund is fully flexible and designed for day-to-day trading. To accommodate the structure and to service any major share redemptions, the fund will keep a liquidity reserve of 20% relating to its equity, either by means of liquid assets or an unclaimed debt facility.

This is only an excerpt of Open-Ended Funds – 01/25/2007

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.