June 18, 2022

By: vishesh-heirloom

Our June Newsletter

An update on our latest developments, analysis, and co-investment opportunities.
KEY HIGHLIGHTS
  • An update from President and CIO, Geoff Dover, in response to global and market events.  Read more below.
  • We are honoured to have been informed by Preqin that the Heirloom Alternative Yield Fund – Fixed Return Class outperformed its peer group industry benchmark by 3.76% during the second-half of 2021. More below.
  • In February, the Heirloom Alternative Yield Fund achieved a net return of 1.20% for its USD Fixed Return Class, and a net return of 1.18% for its Alternative Yield Class. Dive into our monthly performance updates HERE.
  • The Heirloom Legal Lending Fund achieved a net return of 0.74% in February.  This Fund, like the Heirloom Alternative Yield Fund, offers investors uncorrelated yielding investment opportunities with strong asset-backing. Dive into the Legal Lending Fund monthly performance updates HERE.
More information on all these updates are below.
If you would like to learn more about anything outlined in this newsletter, please contact us:
MESSAGE FROM HEIRLOOM’S PRESIDENT
“There’s a glimmer of hope on the horizon. It is now clear that Russia’s invasion hasn’t lived up to their expectations while the Ukrainian resistance has far exceeded everyone’s expectations.

We are not military strategists and can’t predict the outcome of this ongoing conflict. However, we remain hopeful that a peace agreement is coming. Not only will that save countless lives in Ukraine but it will also stabilize the global food, fertilizer and energy markets, and avoid additional hardship across the world.

Even with peace, the consequences have been dire.  Beyond the suffering and lives destroyed, Ukraine could take several years and billions of dollars in investment to reconstruct. Ports, rails, roads, power generation and transmission facilities, agricultural infrastructure, factories, and real estate have been decimated and will need to be restored.  As a silver lining, this does offer the opportunity to innovate in several sectors, including agriculture and renewable energy, which could put Ukraine on a progressive path forward.

Funding Ukraine’s economic recovery could be an important impact investment opportunity in the years ahead and should be heavily considered by investors as the world comes together to help all those affected by this tragic war.  Heirloom is leading an initiative to rebuild hard asset infrastructure in the region, with an on-the ground team in place and ready to begin in the event of peace.

For the sake of the Ukrainians struggling with this conflict and families in the developing world struggling with the energy and food crisis, we hope for imminent peace and a more hopeful tomorrow.

Sincerely,
Geoff Dover
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HEIRLOOM OUTPERFORMS PREQIN BENCHMARK
Heirloom is honoured to have been recognized by Preqin for exceptional performance. The Heirloom Alternative Yield Fund – Fixed Return Class outperformed Preqin’s Discretionary Hedge Fund industry benchmark by 3.76% during the 6-month period ending December 2021.

Outperforming Preqin’s extensive list of investment funds is the performance we continually strive for in support of our clients and their investment goals. 
HEIRLOOM FUND UPDATES
Alternative Yield Fund  
Fixed Return USD Series: 1.20%
Fixed Return Euro Series:  0.83%
Alternative Yield USD Series: 1.18%
Legal Lending Fund
Legal Lending USD Series: 0.74%

1.  HEIRLOOM ALTERNATIVE YIELD FUND 

Investment Strategy: Uncorrelated portfolio of asset-backed and/or income-producing investments which also provide strong hedging against inflation.

Underlying Assets: Asset-backed lending, trade finance, equipment leasing, agriculture, royalty financing, infrastructure, and legal finance among others.

There are two ways for investors to access Heirloom’s Alternative Yield Fund.

  • The Fixed Return structure offers a target return based on an investor’s currency and liquidity choices, with no Management Fees and with Heirloom-owned Loss Absorption Shares absorbing any monthly losses.
  • The Alternative Yield structure is a traditional open-ended fund design.  It offers the same underlying investment portfolio as the Fixed Return option but with quarterly liquidity and traditional management and performance fees. New US and Canadian feeder funds are being established with attractive fee discounts for day-one investors.
To view more details on Heirloom’s Alternative Yield solutions, including the USD Fixed Return and Alternative Yield proxy performance, please click HERE.

2.  HEIRLOOM LEGAL LENDING FUND 

Investment Strategy: Generate uncorrelated return to investors by providing a spectrum of financing to US-based law firms and other entities in the legal ecosystem.

Underlying Assets: Private credit to law firms and other legal ecosystem participants.

To view a brief monthly overview, please click HERE. A US Parallel Fund will be launched over the coming months, with attractive fee discounts for day-one investors.

To learn more about Legal Lending in general, please read our overview article HERE.
The global economy relies on a $5 trillion engine that has stalled in recent years. Product shortages, supply chain snarls, trade wars, and a pullback from major banks have created a #TradeFinance gap. In 2022, we believe this engine could be rebooted, creating opportunities for investors.
To learn more, Click HERE.
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ABOUT HEIRLOOM
Heirloom is a boutique investment manager specializing in “niche alternatives” that would be beneficial to most portfolios but that are difficult to access for individual investors or more mass-focused private banks and investment consultants.
DISCLAIMER

This document (“Document”) is communicated to you by Heirloom Holdings or one of its subsidiaries (“Heirloom”). The Document is directed to professional clients only and financial products and/or services to which the Document relates will only be made available to professional clients and not to retail clients. This Document does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction, and may not be relied upon in connection with any offer or sale. Under no circumstances should this Document be construed as an offering memorandum. Products and services offered by Heirloom are not available for purchase except where explicitly permitted by law. 

IMPORTANT INFORMATION:  The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate and thus an investor ‘s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein.
Neither the sender of this report nor the sender’s third party vendors and data providers make any representations or warranties of any kind with respect to the subject matter herein, whether express or implied. The foregoing parties expressly disclaim any warranties of merchantability, fitness for a particular purpose, accuracy, completeness or noninfringement with respect to the subject matter herein.
The information contained in this consolidated investment summary is not the official record any investment account(s).  The office records may be different than what is outlined here.  This information should not be relied on in any capacity.  It has been prepared for informational purposes only and is not a solicitation by or for a purchase or sale of any securities or other financial instrument.
Values of assets “held away” from – are manually entered based on the information from current statement(s) provided by the respective Fund(s ) or the management of  the Alternative Investment. If there are any discrepancies between this consolidated investment summary report and individual account statement(s), individual account statements as provided by the Fund, or the management of the Alternative Investment, should be the ones relied upon.
All information contained in the Document is confidential and may not be copied, reproduced, distributed or communicated to a third party without the express prior written consent of Heirloom. The information contained in this Document is subject to change without notice.
PAST PERFORMANCE MAY NOT BE REPEATED. Investment funds can involve significant risks and the value of an investment may go down as well as up. There is no guarantee of trading performance. Certain performance information is based on estimates of Heirloom or the underlying manager. The Fund is intended for qualified investors who can accept the risks associated with such an investment.  Performance data from certain market indices is provided for information purposes only; a comparison of the Fund’s performance to such market indices is of limited use because the Fund’s portfolio may contain among other things, options and other securities, and may employ leverage, not found in a market index.    
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