The Tribune

Sebas Bastian's investment house yesterday said its Titan Balanced Fund had "met every expectation and more" by raising $4.5m from over 1,000 investors.

Investar Securities, in a statement, said the fund - which had a lower investment entry threshold in a bid to entice individual Bahamians to invest - had succeeded in attracting many first-time entrants into the capital markets.

"We are pleased to announce that the initial offering period of the Titan Balanced Fund, which made its debut in the investment fund market in June, met and exceeded every expectation," said Ansel Watson, Investar Securities' president and chief executive.

The month-long offering for the Titan Balanced Fund, one of two unveiled by Investar, was extended by two weeks to mid-July in an effort to attract more investors after it attracted just 400 investors and $750,000 in subscriptions during the first four weeks.

"We are continuing to review the last of the initial applications for shares to ensure full compliance with KYC (know your customer) requirements," Mr Watson said. "But even with those few still outstanding, the response to our initial offering was everything we hoped and more.

"The greatest reward was seeing how many average Bahamians who never invested before felt this offer was their opportunity. The funds were marketed with the inclusive theme 'wealth within your reach', and it was good to see that people identified with it. Our directors deliberately chose to distinguish Titan Funds from others that are often seen as exclusively for the wealthy."

Hillary Deveaux, Investar Securities chairman, and a former Securities Commission head, agreed with Mr Watson's assessment by describing the result as "highly satisfactory".

The Titan Balanced Fund offered shares at a $5 price, with a minimum purchase of 100 or $500. Its rate of return on investment is projected to be between seven to ten percent, higher than certificates of deposit or most other investment vehicles.

The earnings rate is based on high-yield assets that the fund intends to take positions in, including Playtech Systems Ltd, parent company of Island Luck. The Titan Balanced Fund will also hold properties with long-term government leases, plus corporate and government bonds.

Investar Securities said efforts to market the Titan Balanced Fund produced mixed results.

"I think people in some of the settlements wanted to protect their privacy, so while numbers may have been smaller than we would have liked in a few places, what we found is that after we returned to Nassau the phone rang with lots of inquiries and a number of applications followed," Mr Watson said.

"Because each applicant had to prove status and residence, acquiring the KYC documentation after a Family Island trip took longer and accounted in part for the slight delay in the final tally of the first tranches of share offerings. "Given that this is our first race out of the gate, we were extremely pleased with the welcome received.

However, Investar admitted that the reception for the Titan Fixed Income Fund, which was marketed towards the sophisticated or institutional investor, was less satisfactory.

"We believe that institutional investors were targeting the new issues in government securities that were offered recently, becoming the first such securities to be traded on BISX," said Mr Watson.

The Fixed Income Fund's shares were offered at $10 with a minimum investment of $1,000, and a projected rate of return between five to seven percent. Mr Watson said Investar will now review the offering.

Investors are able to buy and sell shares in the Titan Balanced Fund through Investar's offices on East Bay Street in the Bethell Estates compound, or through Genesis Fund Services at 308 East Bay Street. An online subscription application process will also become available.

"We encourage long-term investment for best return. That, and the flexibility to add additional subscriptions at any time in the future, we believe, adds to the attractiveness of the offer," Mr Watson said.