The Tribune

The Bahamas International Securities Exchange (BISX) has confirmed its first SMART Fund listing in the shape of the Sapphire Venture Fund, which will now appear on the exchange’s mutual fund tier.

The fund, which is administered by Equity Trust, was approved for listing by the BISX Listing Committee and will now have its information disseminated via the BISX website.

The Sapphire Venture Fund is licensed as an ‘SFM 007’ SMART Fund under the Investment Funds Act 2003, and becomes the first SMART Fund to be listed on BISX.

SMART Fund stands for Specific Mandate Alternative Regulatory Test Fund, and is a Bahamian-designed asset management structure to combine the flexibility required by service providers with regulators’ responsibilities.

Keith Davies, BISX’s chief executive, said: “We consider this another significant event in the history of the exchange.

“The SMART Fund is an innovative Bahamian structure designed to assist Bahamian service providers with offering value-added products to their clients.

“Marrying this structure to the national stock exchange of the Bahamas only makes sense, and we look forward to bringing on many more SMART funds in the future. As our jurisdiction faces increasing competitive pressures, it seems only appropriate that service providers find new ways of demonstrating value to their clients.”

SMART Fund Model 7, or ‘SFM 007’, is the latest template added to the available SMART Fund templates. Funds under ‘SFM 007’ require a minimum initial investment of $500,000, and so are not suitable for retail investors.

Sapphire Venture Fund’s objective is to spread risk by investing in a diverse portfolio of commercial and residential real estate properties in prime locations in the Bahamas, via long-term leases and high quality tenants. It aims to generate stable and increasing cash flow and asset value.

Sapphire Venture Fund has appointed Sapphire Venture Management to act as its investment manager, and Royal Fidelity Merchant Bank & Trust acted as its sponsor member for the listing.