This is a qualification page in order to be granted access to fund specific data. Please read the text below and click the appropriate box at the bottom of the page:
The Prudent Investment Fund (the "Company" or the “Fund”) is a Luxembourg specialised investment fund reserved to institutional investors, professional investors and well-informed investors within the meaning of the SIF Law. As a consequence, the sale of Shares is restricted to Well-Informed Investors as defined by article 2 of the SIF Law:
1. Investors who qualify as institutional investors according to the Luxembourg laws and regulations,
2. Investors who qualify as professional investors according to the Luxembourg laws and regulations, and
3. Investors who: a. declare in writing their status as well-informed investors and b. either invest a minimum of the equivalent of EUR 125,000 in the Fund or benefit from a certificate delivered by a credit institution within the meaning of Directive 2006/48/EC, an investment company within the meaning of Directive 2004/39/EC or a management company within the meaning of Directive 2009/65/EC stating that they are experienced enough to appreciate in an adequate manner the investment made by the Fund.
Only investors qualifying under any of the categories indicated above or persons representing a duly Regulated Financial Advisor are allowed to click the YES box and access the information on the following page. By clicking the YES box the person is qualifying himself or herself as belonging to one of the eligible categories indicated above.
Click the appropriate response here:
First, some basic information: The fund (A) signs an agreement with a seller, company (B) after a credit review. Company B sells a product/service to a buyer (C). C will make the payment to A instead of B.
The highly concentrated Brazilian banking system is very healthy with an average tier one capital ratio above the historical European average. As credit expanded over the last 20 years in Brazil, real interest rates and lending spreads have stayed among the highest in the civilized part of the world.
Historically, small and medium sized companies used to pay 10% per month for their financing. In Brazil’s generally bureaucratic financial system, alternative financial solutions, such as factoring, have surfaced over the last few decades. Leading up to where we are today, the factoring market has shown annual organic growth rates in the mid-teens during the last ten years. The total market size is approaching USD 100 bn.
More than 100,000 small to mid capitalization companies are using factoring as the primary source of external financing for their businesses. As the market has evolved, so has the industry process to enforce payments and thereby minimize credit losses. The industry average default rate is currently running at about 3%.
Different factoring segments offer varying discounts depending on the duration, the chosen industry segment, the level of direct retail exposure, credit quality, payment history and many other factors. These will bring the monthly financing cost for the best in class down towards 2-3%.