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18th of May 2012

PCC used for eco-friendly scheme

Vicky Beckett 28/11/2011

A clean energy scheme will be funded through a Guernsey PCC for environmentally-friendly projects.
 
Investors can buy cells of Meteor Infinity PCC, which is regulated by the Guernsey Financial Services Commission (GFSC), but not the Financial Services Authority (FSA).
 
A PCC was attractive to Meteor’s collective investment scheme as the structure allows for various classes of shares, umbrella or multi-class funds.
 
Therefore, each individual share class has the same limited liability that would be obtained when separate structures are used for each different category of investor.
 
Ben Sommer, European markets developer at Meteor Assets Management, said: “This opens the fund to more specialised investors with a perhaps more narrow focus.
 
“We are in talks with an Asian bank, who only have a mandate to invest in Asian projects, whereas the fund could also invest in Africa and Latin America amongst others.
 
“The PCC structure allows us to ring-fence an investment, and through that tailor it better to specific investor needs.
 
“This is a huge benefit to many investors compared with a ‘traditional’ structure where all investments could be pooled and not separate,” said Sommer.
 
The fund will invest in a number of countries, in various currencies, and the PCC will hedge against any currency and exchange rate risks, where appropriate.
 
The PCC will, where possible, also insure itself against any political and delivery risks that could affect the performance of the projects.
 
To help limit the level of risk within the fund the projects selected will be diversified across a variety of energy sources, geographical regions, methodologies, project sizes, technological innovations and service providers.
 
Sommer is not aware of any other eco-friendly organisations that are carrying out the same initiative, however Meteor is still looking for investors as the scheme is yet to be launched.
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Tags: Clean energy scheme, Financial services authority, Fund, Guernsey, Guernsey Financial Services Commision, Hedging, Insurance, Meteor, PCC

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