Columbus Capital has been active in the Australian Asset Backed Securities (ABS) and Residential Mortgage Backed Securities markets for many years. ColCap FM, the investment manager, has full access to the resources and expertise of Columbus Capital.

 

Our business considers Australian ABS and RMBS to be its area of core competency.

ColCap FM will restrict it's investment universe exclusively to Australian ABS / RMBS (as well as cash or Cash Equivalent assets, Commercial Paper and Derivatives).

The Investment Manager will review the Australian ABS investment market and will apply bespoke analytical tools to assist it in making individual security selection decisions. The Investment Manager will follow a rigorous investment process consisting of internal ratings, peer review and portfolio and individual asset risk modelling.

This approach is driven by our aim to preserve investor capital and deliver attractive risk adjusted returns over the relevant investment horizon.

The Australian ABS / RMBS markets are, in the ColCap FM's opinion, in dislocation. This is, in ColCap FM's view mainly due to the global financial crisis which has led to liquidity issues resulting in discounted selling of securities.

Australian ABS, particularly RMBS securities, are trading below what ColCap FM considers to be their fair value for liquidity reasons.

 

As such we see the current situation as an investment opportunity because it is currently possible to acquire ABS for less than their true value.