Following a successful start for the first sub-fund which focused on the trade receivables of Nickel, the Supply Chain Enabler Fund will invest in the trade receivables of entities associated with supply chain functions, services, and or/logistics
The multiple sub-funds under the VCC enable Envysion to provide a variety of investment strategies for its high net worth (HNW) clients’ financial needs, all under one umbrella. Prior to the VCC setup, Envysion had curated bespoke investment solutions for HNW clients
through alternative structures such as Active Managed Certificates (AMC), which have consistently outperformed market benchmarks on an absolute return basis.
One of the fastest-growing investment themes this year is Environmental, Social, and Corporate Governance (ESG) investing, which is also an area of focus for Envysion. Riding on this investment theme, the firm rolled out the SCEF to provide liquidity to Small and Medium-sized
enterprises (SMEs) during this challenging time, with the objective of making investments into or acquire receivables of SMEs associated with supply chain functions, services, or logistics.
For the SCEF, Envysion will focus specifically on the receivables from government-linked companies (GLCs) and fundamentally strong corporates. This trade financing model will allow SMEs to get access to liquidity earlier based on the invoices that they are owed by their customers, providing an improvement to their cash flow as financial institutions worldwide scale back on invoice financing.
Despite investing to acquire receivables which are considered a reliable and low-risk asset class, the availability, and supply have not been sufficient to meet demand. Access to finance remains disproportionately skewed in favor of large firms. While SMEs account for 37% of trade finance demand, the rejection rate from banks of SME proposals is 45% higher relative to mid-sized and larger firms (39%) and multinational corporations (17%).
“We’re very excited to launch the second sub-fund under our Variable Capital Company. The Supply Chain Enabler Fund offers partners and clients alike access to a new asset class with an attractive risk-return profile. This launch follows a fantastic first quarter of returns from the Commodity Strategy Fund and we’re looking forward to introducing a third sub-fund in the New Year,” said Veronica Shim, Founder, and CEO, Envysion Wealth Management.
The Envysion Global Investments VCC allows funds to be re-domiciled in Singapore, enabling investors to tap into the Asian markets and enjoying the same tax incentives and treatment. With a Singapore-domiciled fund, co-location of the fund vehicle and the wealth management entity allows for better economies of scale in terms of operating costs and a more extensive range of benefits that investors can tap into.
Besides HNW clients, Envysion also offers support for single-family offices around the region. Envysion has made significant investments in technology to create a unique, tailored platform that aggregates data and information from across its financial partners – providing its clients with a consolidated overview of their entire portfolio.
To this end, single-family offices will be able to leverage Envysion’s infrastructure, which includes a fully-equipped CIO office in partnership with over 20 global private and investment banks. The consolidated platform provides 100 percent visibility and centralized access for clients. Beyond a registered VCC, single-family offices will also have access to a network of subject matter experts for financial and non-financial solutions.
Since Envysion’s incorporation in January 2020, the company has taken great strides in bringing a refreshed approach to wealth management. Against the backdrop of an industry that is slow to change and innovate, Envysion’s bespoke solutions cater to both the financial and non-financial needs of clients that span across Asia and the Middle East. Envysion is close to doubling its Assets under Management (AUM) and Assets Under Account (AUA) and aims to reach USD 1 billion next year, with an additional USD 1.9 billion in the immediate pipeline.
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About Envysion Wealth Management
Founded in January 2020, Envysion Wealth Management is an innovative yet traditional independent, full-service wealth manager with a specialty in Family Office solutions for their financial and non-financial needs. Led by a team of veteran bankers, Envysion brings unparalleled access to a wealth of opportunities, bespoke, and customized wealth management solutions for every client. With a strong network of partnerships with top-class companies across multiple industries and service providers – both financial and non-financial
– Envysion is the only wealth management company that offers a truly one-stop solution platform. For more information, please visit www.envysionwealth.com.