BAM Latam

Trade Finance Fund

Fund Investment Objectives

BAF Latam Trade Finance Fund (formerly Navigator Absolute Return) is a direct lending fund with a focus in short-term pre-export loans granted to food exporters of South America. The primary investment objective is to achieve consistent absolute capital appreciation, with low volatility and minimal correlation to equity, fixed income, and alternative asset indices through. Investments are made in self originated short term collateralized loans to agro-industrial exporters, primarily from Brazil, Argentina, Paraguay and Uruguay. All transactions are granted on a discount basis. In addition to the interest rate charged to the exporters, a LTV ratio is always applied in order to have an additional margin collateral to the typical ones involved, which are export contracts, letters of credit, warehouse receipts and account receivables. LTV ratios are constantly monitored and adjusted until the repayment of the loan takes place, always on a specific collection account of the Fund in New York. There are no local currencies risk exposures in the portfolio as all deals are signed and collected in US dollars.