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South African wealth manager, Saffron Wealth, has launched its first offshore income product on the Prescient Global Funds ICAV in Ireland. 

Offering daily liquidity, the fund will also be available to South African investors through a feeder fund with Boutique Collective Investments.

The dollar-denominated portfolio has a benchmark of the Secured Overnight Financing Rate Data three-month rate plus 3 per cent. (The SOFR replaced the LIBOR interest rate benchmark following abuses that led to authorities scrapping that system.)

The fund may invest in fixed or floating rate bonds and notes, credit linked notes, convertible bonds (including up to 10 per cent of net assets in contingent convertible bonds), index linked debt securities, debentures, zero coupon and coupon-bearing and deferred interest instruments. It may also invest directly or indirectly, in short-term money market instruments such as commercial paper, certificates of deposits, treasury bills and securities of property corporations quoted on recognised exchanges.

“We have been managing global hard currency exposure as a subset in our existing income funds for more than 12 years. Many investors have enquired about creating a strategy that focuses only on the offshore space,” Saffron CEO Brandon Quinn said in a statement. “At a high level, the fund can be invested 50 per cent in emerging market and 50 per cent developed market debt and debt-related securities. We can invest in government issued and corporate debt across the capital structure, with a multi-sector focus for diversification.”