LGB SME Fund Celebrates Third Anniversary With 19% Investor Returns

Following its third anniversary, LGB is expanding the distribution of the Fund to external wealth managers and sophisticated investors

LONDON, July 24, 2019 /PRNewswire/ -- LGB Investments, whose offering includes secured high yielding investment opportunities for sophisticated private investors, family offices and wealth managers, is celebrating the third anniversary of its SME Fund. The SME Fund's Net Asset Value has grown by 6.52% in the 12 months to the end of June and overall has delivered a 19.1% return for investors in the three years since it was established. Out of the total assets in the fund, 91% were invested in secured medium term notes at the end of the June.  

The Fund's objective is to generate steadily compounding returns for income and growth orientated investors with a long-term investment horizon. The Guernsey-based LGB SME Fund is managed by Heritage Fund Managers Ltd with LGB acting as investment advisor. It is available in the UK on a restricted basis to investment professionals, HNW investors and sophisticated investors.  

The fund utilises LGB's expertise in secured SME lending and fixed income by investing in a laddered portfolio of secured medium term notes arranged by LGB Corporate Finance. These notes are issued under the terms of programmes available to scale-up SMEs seeking diversification of lending sources and flexibility of funding.

The fund can be purchased through accounts with LGB Investments or Heritage Capital Management. The fund allows for monthly subscriptions and redemptions although some restrictions may apply. The Fund holds a minimum of 5% in cash. The overall maturity of the fixed income portfolio is very short, with currently 82% of the medium term note portfolio invested in notes maturing within two years.

Simone Westerhuis, Managing Director at LGB Investments, said: "We are delighted to celebrate the SME Fund's third anniversary delivering investor returns of 19% over that period. To date the SME fund has been exclusively offered to LGB's network of sophisticated investors. Now that the fund has demonstrated a solid three year track record, we are pleased to widen our distribution to other wealth managers seeking access to private debt and fixed income fund managers."

About LGB & Co.: LGB&Co are a London-based corporate finance house who provide services to corporate and investing clients respectively.

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