• Trade Finance.
    A secure asset class with institutional appeal.

    One of the oldest forms of institutionalised credit, trade finance helps fund the global trade of virtually every commodity and finished good. An asset class that until recently was mainly dealt with by banks, but is today more readily accessible to investors.

Why invest in trade finance?

It is estimated that around $2.5 trillion of trade finance applications are rejected by banks & financial institutions each year. Accounting for approximately 8-10% of global trade. This ‘trade finance gap’ presents an opportunity for investors to capitalise on an underserved market, make an impact and benefit from an undervalued asset class.

  • Demand has increased since the 2008 financial crisis, while trade financing supply has become increasingly scarce.

  • Banks are increasingly reducing their exposure, providing an opportunity for agile financial organisations to support SME trade finance requirements.

  • Trade finance assets can now be accessed easily by specialist funds such as Artis.

  • A trade investment directly impacts global economies and helps facilitate key trade at an important moment in commercial history.

Benefits of trade finance as an investment.

  • Self-liquidating

    Trade finance transactions ordinarily have short tenors and self-liquidate on completion.

  • Low default rates

    Trade finance instruments statistically result in lower default rates than other fixed income investments.*

  • Uncorrelated returns

    Investments provide consistent returns uncorrelated to capital markets.

  • Secure investments

    Trade finance transactions can be secured by credit insurance and other collateral.

  • Alternative to cash

    An alternative to a cash time deposit, especially in times of negative interest rates.

  • Resilient asset class

    Trade finance has proven to be resilient to geopolitical turbulence.**

  • Portfolio diversification

    A means to diversify your portfolio with an institutional-grade asset class.

  • Impact investing

    Enable global SMEs to access much needed working capital.

*Source: 2019 ICC Trade Register **Source: Eurekahedge research

A consistent and uncorrelated investment class.

Performance of trade finance funds against comparable public benchmarks since 2009.

Eurekahedge Trade Finance Hedge Fund Index
Bloomberg Barclays Global-Aggregate TR Index
Eurekahedge Fixed Income Hedge Fund Index
Merrill Lynch US High Yield Master II Index
Investments that make an impact.

Access to working capital and trade finance for SMEs has never been so restricted. Compounded by the impact of the pandemic, businesses are struggling to finance their deals, in turn jeopardising jobs and global supply chains.

With an investment in Artis you have a direct impact on national economies and facilitate critical trade.

  • Support SMEs and global economies.
  • Facilitates national and cross-border trade.

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