Prytania Investment Advisors, a structured finance and credit specialist based in the City of London, has launched the Metreta Fund, a global fund investing in the senior tranches of Asset Backed Securities.
The fund is designed to offer institutional investors a liquid, low credit risk portfolio of assets generating a stable yet enhanced return in excess of LIBOR+150.
The first close of the Metreta Fund, with USD57 million, extends Prytania’s current suite of global structured finance funds, offering institutional investors a range of attractive risk: reward profiles when compared to other credit instruments. The fund offers investors access to weekly liquidity for low base management fees of 15bps.
Mark Hale, CIO of Prytania Investment Advisors, says: “The continued resilience of senior structured finance in light of turbulent credit markets and global macroeconomic woes offers institutional investors superior risk reward and low volatility when compared to a wide range of other near cash products such as bank debt, EU sovereign debt and corporate bonds. Metreta complements Prytania’s existing fund products and we expect economies of scale to develop as the fund grows, helping offset the natural spread tightening anticipated as the revival in structured finance continues.
“Institutional investors that run large cash balances increasingly want enhanced returns for their cash, but are often not willing to invest in instruments where the risks are not clear. Giving clients full transparency on what we invest in, providing clients with the option to “drill down” into each underlying asset and publishing continuous updates is a key service Prytania can provide.”