Bringing you live news and features since 2006 

Allocean Maritime Investments launches UK market first in direct shipping investment

RELATED TOPICS​

FCA-authorised shipping investment company Allocean Maritime Investments has teamed up with a major international tanker operator to launch what is believed to be the first direct commercial shipping assets investment within the UK legal and regulatory framework. 

Aimed at sophisticated, high net worth and professional investors looking for healthy returns that are de-correlated with the mainstream investment markets, the scheme is expected to produce a steady return of seven per cent pa after charges and tax (at 45 per cent) via the five-year fixed-rate charter, and an overall net IRR over the five-year term of nine to 16 per cent pa.
 
Allocean Maritime Investments managing director Braden Harris says: “Industrial transportation, particularly international shipping, can provide the yield investors have been searching for in the ongoing low-interest rate, uncertain equity market environment. The difficulty has been accessing these assets in a straightforward and transparent manner. We’re aiming to provide that access with Explorer Tanker LP and similar future launches.”
 
Allocean has engaged third party advisers such as Clifford Chance, PwC and Moore Stephens to present investors new to the asset class with management controls. 
 
The asset will be purchased on a sale and lease-back basis to its current owners who will continue to operate and employ it along its historic routes around the Mediterranean, Black Sea and European Continent.
 
“With the global economic recovery clearly underway and the relocation of oil refinery capacity eastwards, new routes are opening up, which is boosting the underlying demand for refined product transportation. This, in turn, is creating strong interest among both charterers and investors in this class of vessel, which is ideally positioned to add further value over the longer term,” says Harris.
 
Minimum investment is GBP30,000/USD50,000. It is intended that the vessel will be sold at the end of the charter period to realise investors’ capital. Allocean will offer a bargain matching function should investors want to sell their position early.

Latest News

The European Fund and Asset Management Association (EFAMA) has published its 2024 industry Fact Book, which includes a foreword by..
Amundi has reduced its management fees across a wide selection of its ETF range. The firm writes that this move..
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin (BTC) ended the week at approximately USD66,675, marking a 4.3..
Amundi’s ETF Market Flows Analysis for May finds that global ETF inflows were EUR105.1 billion with US-domiciled equity funds accounting..

Related Articles

CN Tower, Toronto
The winners were announced in the second ETF Express Canadian awards at the event held at The Quay in Toronto,...
Darren Jordan, Komainu
Custody specialist, Komainu, was launched in 2018 as a joint venture between Nomura, digital-asset investment manager, CoinShares and blockchain business,...
Stuart Chaussee
In January this year, global data and business intelligence platform, Statista reported that there are now more than 8000 ETFs...
Ethereum coin
Last week saw Australia launch spot bitcoin ETFs, with Matteo Greco, Research Analyst at Fineqia International, writing that Monochrome Asset...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by