BRIM moves to return monies to investors

20 November 2013   Category: News, Asia, Singapore, Cayman Islands   By Asia Asset Management

Singapore-based boutique fixed income firm Blue Rice Investment Management (BRIM) is closing down two of its Cayman-registered funds and returning monies to investors, says the firm’s founder and principal, Guan Ong. The short duration fund and the firm’s broader Asian credit fund collectively have less than US$100 million.

In a letter to investors, Mr. Ong says that in spite of returning targeted returns for the Asian short duration fund of between 2.5 and 3% net since the launch of the strategy this June, fund raising has been challenging. “Since the start of the taper talks, the global investment environment, especially in emerging markets, has become more volatile and despite the strong returns, we have been unable to gain traction on AUM growth on our low duration strategy,” the letter notes. “Coupled with other factors including some structural limitations in our main fund, we have decided to return funds to investors,” the letter adds.

Mr. Ong was the first chief investment officer of Korea Investment Corporation, the sovereign wealth fund (SWF) established by the Korean government in 2005. He was KIC’s CIO from 2006 and 2009 and on leaving the SWF, returned to Singapore to establish BRIM that year. In 2011, the firm announced a strategic partnership with NewAlpha Asset Management, a Paris-based global hedge fund. In 2009, BRIM entered into its first partnership with Woori Absolute Partners, a wholly-owned subsidiary of Woori Investment & Securities. Prior to joining KIC, Mr. Ong held several senior positions with Prudential in Korea, Singapore and Hong Kong.