FinEX Asia Eyes U.S. Consumer Loans Amid Volatile Markets

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FinEX Asia, a startup fintech asset manager, launched two new credit funds in March that focus on higher-yielding U.S. consumer loans, as the firm seeks to provide Asian fixed-income investors less volatile investment options, according to the company’s COO Robert Cheung.

  • U.S. consumer loans can be purchased via market place platforms, such as Lending Club, Prosper and Upgrade, Cheung said in an interview in Hong Kong.
  • The company is targeting annualized net returns of 7.5-8% from its un-leveraged fund started in October, which invests only in U.S. market place consumer loans, according to Cheung
    • It launched a leveraged fund that invests in U.S. consumer loans in March, together with a hybrid credit fund, that invests in global HY dollar bonds as well as U.S. consumer debt; the three funds have a combined AUM of about $50m, while the firm’s AUM is $130m
    • The number of consumer loans in the company’s funds has jumped to more than 6,000 at the end of Q1 from about 800 at the beginning of the year
  • The majority of investors are high net worth individuals and family offices from Hong Kong, Taiwan and Singapore, with increasing interest from mainland China, he said.

Posted from Bloomberg.com, April 20, 2018, copyright by Bloomberg L.P. with all rights reserved. This reprint implies no endorsement, either tacit or expressed, of any company, product, service or investmenet opportunity. #C85902 Managed by the YGS Group, 800.290.5460. For more information visit www.theYGSgroup.com/content.

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