Commodities Receivables And Finance Trust
At CRAFT, our knowledge and evidence-based qualitative approach is designed to avoid all known and perceived risks as our first line of defence when it comes to protecting investors’ capital and returns.
The Commodities Receivables And Finance Trust seeks to support only those companies for whom, after our due diligence processes, we identify have no plausible scenario of default. CRAFT aims to generate for its investors:
- A genuine risk-adjusted (or premium) return for the risks undertaken.
- Paramount capital preservation, from an asset class that is one of the world’s most reliable forms of lending at a macro level, even before applying CRAFT’s underwriting processes.
Using deep industry operational knowledge to avoid all known and perceived risks, CRAFT provides investors seeking:
- Predictable, income underpinned by some of the world’s most profitable companies.
- Capital preservation and security at both the macro and execution level that most other private credit markets and processes cannot match.
- Investment success underpinned by the economic success of some of the world’s most dependable companies operating in the real economy.
Why Invest in CRAFT Fixed Income?
CRAFT Notes provide access to one of the world’s most reliable lending markets, even during times of market turmoil when alternative credit markets come under pressure. Historically, the last three miles of commodity supply chain trade finance have outperformed all other forms of lending on default and loss rates versus returns during each of the prior global market crises:
Default Rates for CRAFT’s underlying lending Versus real estate lending
| 2000 – 2002 Dot Com Bubble Burst | CRAFT 0.2% Vs RE Lending 5.5% |
|---|---|
| 2007 – 2009 Global Financial Crisis | CRAFT 0.3% Vs RE Lending 10.5% |
| 2010 – 2012 Eurozone Debt Crisis | CRAFT 0.2% Vs RE Lending 7.0% |
| 2020 – 2021 COVID-19 Pandemic | CRAFT 0.4% Vs RE Lending 9.0% |
CRAFT Characteristics
CRAFT Fixed-Income, Fixed-Term notes
CRAFT Notes are designed to be a “risk-off” capital investments for portfolio investors and generate risk-adjusted (or premium) returns for the underlying risks and pay investors a fixed income return for a fixed investment term.
Certainty of Fixed Income Returns
Unlike most fixed income investments that promote target returns, CRAFT Notes pay investors a fixed return for the term of the investment. Also unlike most fixed income funds that can suspend income payments, CRAFT Notes must make income payments on time otherwise CRAFT will be in default of its obligations to its investors.
Certainty of Fixed Investment Terms
Unlike most fixed income investments that promote liquidity for their investors, however can suspend redemptions, CRAFT Notes must repay investors capital at maturity otherwise CRAFT will be in default of its obligations to its investors.
Fees
Unlike most alternative fixed income investments, investors pay no entry, exit, management or performance fees on capital invested or income received.
Distributions
CRAFT Notes pay income either quarterly or half yearly and will be credited to your nominated bank account. Unlike most income funds that promote target returns and can suspend distributions, CRAFT must pay its fixed interest obligations on time otherwise it will be in default of its obligations.
Applications
Daily: Applications can be processed on any business day. Completed applications and cleared funds must be received by 2:00 pm AEST on the date of subscription.
Redemptions
There are no redemptions within the first two years and three months of the term of the investment. Investor may apply for a redemption by giving a full calendar quarters notice at the end of 24 months and request CRAFT repurchase their Notes for an interest rate reduction to reflect the reduced investment term. Or alternative investors are free to sell their Notes OTC (over-the-counter) in the secondary market should there be one.
Investment Terms
CRAFT issues Notes for two, three, four and five year terms.