Meridian Universal Fund

Meridian Universal Fund
Private/ Listed Equity
Fixed Income/ Private Credit
Real Estate
Infrastructure
Commodities/ linked
Cash/ Equivalents
UK
3.60%
25.60%
5.00%
4.60%
0.40%
0.80%
US/ North America
1.80%
12.80%
2.50%
2.30%
0.20%
0.40%
EU
1.80%
12.80%
2.50%
2.30%
0.20%
0.40%
Asia (including Australia)
1.35%
9.60%
1.88%
1.73%
0.15%
0.30%
Other (EM)
0.45%
3.20%
0.63%
0.58%
0.05%
0.10%

This is a balanced approach, embedded within our Investment Philosophy, the purpose being long-term stability and resilience. We will leverage upon this stability to finance more and be a strong foundation for others. The Fund is not open to investors, however we do offer co-investment opportunities.

The Fund also has a clear Remuneration Policy, which ensures the integrity of the Firm and its focus is maintained and aligned.

Climate Risk Management

The Firm will be using the Equator-Principles as our benchmark criteria for evaluating each transaction. The Equator Principles (currently ‘EP4’) were established following several high-profile bank financings of infrastructure projects that had created severe environmental damage. The Basel Committee on Banking Supervision have also released guidance on evaluating climate-related financial risks in credit evaluations, which we are including in our banking and financing practices and systems. 

Emerging Market - Economic Growth Determinants, Measures and Contribution

In financing economic growth in emerging markets, the Firm will use the UN Sustainable Development Goals as part of our evaluation of companies and projects. We will therefore be able to actively track our contributions towards these goals whilst steering our investments alongside these goals with clarity. 

Credit Risk Evaluation & Management

Our most important analysis and evaluation will be the issuer credit risk assessment. This is our best form of credit risk management for ourselves, given we will be issuing and investing in these issuers. This also ensures we protect the investors we work with and ensure they only receive the highest quality assets. The Firm has based its credit evaluation methodology on Standard & Poor’s credit analysis process, with minor variations specific to our mandate. We have allocated weighted scoring for each section and detail to provide the resulting credit score, from which we would evaluate the pricing and whether to go ahead with issuing for each transaction.

In order to achieve the desired credit risk distribution, we have limitations on the markets, industries, and individual qualities of businesses and debt securities offered. The goal for the Firm is to maintain a fund with average credit rating of A as per Standard & Poor’s credit rating scale. This is an acceptance of the challenge of achieving investment grade when financing emerging market growth, climate-resilience infrastructure and companies, and financing operations in Asia, however this is the requirement to ensure our company remains stable, provides the best quality securities for investment portfolios, and also brings discipline to issuers to maintain the standard required to either keep or exceed these credit ratings.

 

Our commitment to this standard is what will ensure a more sustainable and robust trajectory for us as a company but also the contribution we make to society and the world in our financing activities over the next 30+ years.

The Meridian Universal Fund is our privately managed fund, composed of diversified securities as per the Firm Mandate. Below are our target allocation across geographies and sectors: