Our Business
Maritime Investment /Management
Investment in Ships
As one of the core investments activities, we are acting as ship investment manager as well as an investor. Our focus is on cargo ships, especially containerships, handy-size bulkers, and product tankers.
As a progression from our structured finance business to an arranger of financing for transportation-related assets, we have branched out into direct investments in ships through equity investment in the ship owning companies and through subscription of performance notes issued by investment fund vehicles established.
When we find good investment opportunities, we sometimes solely invest in ships through ship owning companies before inviting other investors to participate, after which we consider to transform our investment into joint partnership investment or ship investment fund.
Our ship investment strategy is to act as a co-investor with other investors to show our commitment to the fund or co-investment asset holding companies in addition to expecting good returns on our investment. As of 31 December 2008, our investment portfolio comprises of 14 vessels including our own investment.
Our Vessels
Among the 14 vessels in our portfolio, 12 vessels have already secured charter contracts. As for the remaining 2 vessels, delivery of the vessels are expected to be in the fourth quarter in 2010 and the first quarter in 2012 respectively, giving us time to fix the charter contract.
With the exception of one charter contract for a bulker, there are no other charter contracts that will expire in 2009.
List of Vessels
Assets under Management
The tonnage of vessels under our management has been increasing steadily. However, it was at slower pace in 2008 due to the market deterioration and financial crisis.
Tonnage of Vessels under Management
Above includes vessels wholly owned by the company and vessels before delivery
In view of the drop in asset value of commercial vessels, the Group was hit by an assets revaluation loss at the end of the year. For details related to the fair valuation, please refer to our operational review and financial statements.
Ship Investment Fund
Uni-Asia Capital (Singapore) Limited, a wholly owned subsidiary of UAF, was granted the status of Approved Shipping Investment Manager from Maritime & Port Authority of Singapore (MPA) under the Maritime Finance Incentive scheme. The Akebono Fund, which was launched in April 2007 as the first Singapore private shipping fund of our group, also took advantage of the Approved Shipping Investment Enterprises status granted by MPA. The Akebono Fund, for which Uni-Asia Capital (Singapore) Limited is working as ship investment manager, has performed well in FY2008. The fair value of our investment in the Akebono Fund has increased, in addition to the performance note interest of US$687,000, which we received in 2008.
Structured Finance Arrangement
Our structured finance team provides integrated services to our clients by offering financing solutions together with charter arrangement services, which are customised to our clients' need. The solutions do not normally involve the use of our balance sheet capital to make loans. We typically act only as the arranger and agent for the structured financing provided by third party financial institutions. Our main focus for structured financing is in the transportation industry, especially in the maritime industry where we have established wide network.
Since the worsening financial crisis after September 2008, the credit policies of financial institutions have been tightened. Our structured finance business was affected by this market condition, and we recorded a lower amount of financing arrangement fee in 2008.
Value of structured finance arrangement
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