What role can a Supervisor play in wholesale investment offers?
Acting in the best interests of our investors is at the heart of everything we do here at Jasper. With this in mind, we wanted to highlight one thing we do to provide investors with protection and peace of mind; appointing a Supervisor to suitable funds.
With macro headwinds such as inflation and interest rates front of mind, we thought now was a good time to talk about one of the things we do to help protect our investors in the Industrial Income Plus Fund.
What is a Supervisor?
A Supervisor is an independent entity appointed to look after investors' interests for some types of financial products. Supervisors are themselves licensed and regulated by the Financial Markets Authority. For some financial products (such as managed investment schemes targeting retail investors) it is a requirement to have Supervisor in place. Wholesale schemes are not required to do this, however as in the case of Jasper’s Industrial Income Plus Fund they may elect to do so if they wish.
What does a Supervisor do?
In the case of Jasper’s Industrial Income Plus Fund, part of the Supervisor’s role is to actively supervise the fund's manager (being Jasper) to make sure we are operating properly, meeting our legal obligations (e.g. complying with relevant laws and any governing documents), and maintaining appropriate accounts. A Supervisor can also escalate matters of concern to regulators, such as the Financial Markets Authority. Supervisors have a legal obligation to act in the best interests of investors.
Practically, this means that operational matters (e.g. a new asset being acquired, changes to a tenant or their lease) and financial matters (e.g. monitoring the fund's accounts, financials and payments) are reviewed, approved and overseen by an independent third party.
Supervisors can play a critical role in risk management, especially during periods of heightened risk. During the COVID lockdowns, for example, our Supervisor sense-checked our decisions regarding tenants abatements, to make sure investors' interests were being protected. During the acquisition of properties into the Fund our Supervisor will review the lease agreements, legal due diligence and other offer material.
Why has Jasper appointed a Supervisor to the Industrial fund?
We strongly believe that anything that protects our investors is a good thing. For this reason, despite being a wholesale fund, we have chosen to appoint Covenant Trustees as a Supervisor on our Industrial Income Plus Fund. It’s not always practical to have a Supervisor on wholesale schemes, however, where possible we believe it’s the right thing to do. We’ve elected to do this to provide our wholesale investors with the strongest possible protections.
Important Disclaimer: This article is for information purposes only. Jasper is not licensed as a managed investment scheme (MIS) manager under the Financial Markets Conduct Act 2013. We do not claim that our decision to engage Covenant Trustees is endorsed or otherwise supported by the Financial Markets Authority. Having Covenant Trustees oversee our Industrial Income Plus Fund (IIPF) does not mean investors have the same protections they would in a MIS. The IIPF is not suitable for retail investors and is open to wholesale investors only.
For more detail on Supervisors see here