In 2009, the Guardian Permanent Income Fund (GPIF) was established by Guardian Managers S.a.r.l, a Luxembourg-registered Alternative Fund Manager which forms part of the group. Electrum subsequently became the Investment Advisor to GPIF.
This fund was unique in that it was the only investment vehicle specialising in the permanent interest-bearing securities (PIBS) of building societies, a debt instrument that exists only as a part of the mutual ownership model of the building society sector. Coming into being shortly after the global financial crisis that erupted in 2008, its appeal, as a means to invest in the debt capital of very conservatively-managed financial institutions whose behaviour had avoided many of the pitfalls of the mainstream banking sectors, and on which the default record was exemplary, ensured its success.
With yields considerably in excess of those ordinarily available on debt of comparable rating in the more liquid corporate bond sectors, the lesser liquidity of PIBS allowed patient investors to earn a premium return. In addition, allowing for active adjustment of the fund’s exposure to market risk factors and for preferential selection of individual issuers, permitted the manager to reposition the portfolio in response to variations in market conditions from time to time.
Affiliates
Guardian Managers Sarl (Luxembourg)
The team at Electrum has worked successfully for many years with Guardian Managers Sarl, and has a long track record of delivering successful investment across Real estate, Fixed Income and Private Equity. Operating across a number of jurisdictions, both in respect of the location of transactions and of investors, several related companies exist for the purpose of operating across the multiple specialised fields of expertise, while relationships with external service providers are also used extensively for functions that are not among our core in-house activities.
Guardian Managers Sarl is a registered Alternative Fund Manager in Luxembourg and it has established Guardian Managed Funds SICAV SIF, an umbrella fund structure. In 2009 the first active sub-fund, the Guardian Permanent Income Fund (GPIF ) mentioned above was established.
Also in 2009 Guardian Managers sarl., began assisting in the management of existing commercial real estate assets held in a European Property Fund set up in 2003/2004. Geoff Button, with his extensive knowledge of real estate development and investment in the UK and the US, joined Guardian in 2005.
The fund focused on the new EU states such as Poland, Hungary and Slovakia, as well as Germany, and exceeded 200 million Euros by 2008, with a near 50% increase in net asset value through investment returns between 2004 and 2008. Although this fund was affected by the severe downturn in the real estate markets following the global crisis, it was one of the few survivors from that period and was still paying out investors in 2016/17 following the methodical liquidation of the original real estate portfolio.
GRF III / Trentacoste
Via Trentacoste 8, is a cleared property site in Milan enabling c. 11,355 sqm to be developed. The plot is located to the East of the Citta Studi district of Milan, home to two of the city’s major universities and several prominent hospitals. In March 2020, arranged through the development company Avenue Developers Limited, Guardian Managers S.a.r.l on behalf of Guardian Real Estate Investment Fund lll, completed the purchase of the land for €5.58million from vendor BNP on behalf of the Fondo Commune di Milano for the purpose of developing a student residence of c. 563 bed spaces (or 509 rooms with dedicated amenities) to address the growing demand and the current lack of purpose-built accommodation for students in Milan and to host medical staff and trainee doctors working in the vicinity.
Professional Relationships
- National Westminster Bank – Bankers
- RBS International – Custodian and Compliance Monitoring Services, Luxembourg
- Arendt – Fund Administration and Transfer Agency, Luxembourg
- Grant Thornton – Auditors, Luxembourg