Jade Road Reduces Costs and Begins Repositioning
Release date: 5 April 2023
Jade Road Investments, an investment company quoted on the LSE’s AIM Market, is taking meaningful steps to reduce its costs and reposition the Company’s assets in line with its recently amended Investment Policy. This is in furtherance of its objective to deliver its shareholders a competitive, risk-adjusted return; by investing in opportunities that generate a consistent and competitive income stream with strong downside protection.
The new Investment Policy, approved by an overwhelming number of shareholders at the Company’s recent AGM, allows the Company to expand beyond its previous focus on Asian investments, seeking the best risk-adjusted returns globally. In the current environment, the Company is prioritizing asset-backed and/or income-producing investments. It is believed that this will be more attractive to the Company’s shareholders than the Company’s current investment portfolio, the value of which the Company believes its current share price does not reflect. To fund the new investments, the Company will seek to monetize some of its current assets, which the Company believes will occur at values well above the prices implied by its share price.
To implement this repositioning, and to reduce its operating costs, Jade Road has signed an amended Services Agreement with its Investment Manager, Harmony Capital Investors Limited (HCIL). In support of the Company’s current objectives, HCIL will continue with its current duties, but shift its focus to the orderly monetization of its assets in Asia, which no longer align with the company’s investment objectives.
The new agreement reduces the management fee paid to HCIL to $350,000 per year, which is a substantial reduction to its fees last year, which were in excess of $1,000,000. In addition, the amended agreement adjusts the incentive structure to encourage an orderly realization of value from the Company’s existing portfolio.
John Croft, Executive Chairman of Jade Road, commented:
“In line with the recent change to our investment policy and refocus of the Company, we remain committed to the orderly disposal of our Legacy Portfolio. The revised Services Agreement with HCIL has been negotiated to provide a better alignment with the Company’s current objectives. Future investments will be made in asset-backed income generating investments, and the Board hopes to be able to make further announcements on this in the near future.”
Geoff Dover, President of Heirloom Investment Management LLC, representing the majority shareholders of Jade Road, added:
“Heirloom has a strong belief in the attractiveness of asset-backed, income-producing investments in this market environment. We applaud the steps taken by the Board of Jade Road, as well as by its Investment Manager, Harmony Capital, to ensure that the Company is positioned to capitalize on the opportunity being presented to it by the market. We are pleased to support the Company as it transitions to this positive and exciting new path.”
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Jade Road (JADE), quoted on the LSE’s AIM Market, is committed to providing shareholders with attractive, uncorrelated, risk adjusted long-term returns from a combination of realizing sustainable capital growth and delivering dividend income.
|For more information, please contact:
Jade Road Investments Limited
+44 (0) 778 531 5588