The Singapore-based asset manager has boost its trade finance offering.

EFA Group will assume management of the Galena Commodity Trade Finance Fund, taking over from Galena Asset Management.

The fund invests in mid-term structured trade and commodity finance transactions originated and administered by specialised banks and global trading firms, with the aim of delivering stable and uncorrelated yield by focusing on cash flow-based lending transactions. 

Launched in 2010, the fund has generated net returns of around 5 per cent per year with no negative months, EFA said in a statement.

As part of the deal, portfolio manager Alexandre Vieira and investment analyst Gregoire Lamare will join EFA.

“Our aim over the next few years is to provide our investors access to the whole spectrum of trade finance solutions. The fund serves as another entry point for investors to gain exposure to the asset class but through a different universe of borrowers,” said Francois Dotta, chief executive of EFA Group.

“While our existing fund vehicles focus on transactional, short-term lending to mid-market companies, the fund specialises in syndicated loans alongside banks and large traders on a global reach. The very complementary nature of these strategies will bring substantial synergies and long-term value for our investors.”

EFA, which was established in 2003 with more than $1 billion of assets under management, invests primarily in self-originated private debt transactions, with a focus on trade finance.