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Maritime

More than 90% of global trade occurs on ships. With historic levels of distress in the maritime industry, savvy investors are seeing attractive opportunities in the three main sections of bulkers, tankers containers, as well as other areas like the-offshore and car carrier segment.

Investment Strategies


Investment Philosophy

Global Real Assets believes that opportunities exist in the current global shipping industry for investors to create value through the acquisition and redeployment of undervalued shipping assets, as well as the contracting of new builds of state-of-the-art vessels at steep discounts.
 

Investment Process

Global forces at work within the shipping industry – including highly levered acquisitions at peak values, significant equity destruction due to asset value reductions, a slowdown in global trade, uncertainty around delivery timing and the size of the new vessel orderbook – are causing distress in the shipping sector, and impacting value and performance. These forces, when combined with a significant historic dependence on capital on ship owner equity and commercial banks, and the commensurate absence of other readily available sources of capital within the industry, are causing tremendous stress, and consequent price dislocations, that are leading to rare buying opportunities.  Our global platform and experience in the maritime sectors enables us to unlock opportunities in this unique asset class.
 
Risks Associated with Investments in Maritime Assets Generally: An investment in the Strategy is subject to certain risks associated with the ownership of maritime assets and the maritime industry in general, including: the burdens of ownership of maritime-related assets; local, national and international economic conditions; the supply and demand for assets; the financial condition of operators, buyers and sellers of assets; changes in interest rates and the availability of credit which may render the sale or refinancing of assets difficult or impracticable; changes in environmental laws and regulations, planning laws and other governmental rules and fiscal and monetary policies; environmental claims arising in respect of assets acquired with undisclosed or unknown defects or problems resulting in environmental liabilities or as to which inadequate reserves have been established; changes in tax rates; changes in energy prices; negative developments in the economy that depress commercial transportation activity; uninsured casualties; force majeure acts, terrorist and piracy events, under-insured or uninsurable losses; and other factors which are beyond the reasonable control of the Strategy and the Investment Adviser. In addition, as recent experience has demonstrated, maritime assets are subject to long-term cyclical trends that give rise to significant volatility in values.

The manager seeks to achieve the stated objectives. There can be no guarantee the objectives will be met.

years with
J.P. Morgan
years
Experience