Jade Road Investments (formerly known as Adamas Finance Asia) aims to be the leading London-quoted pan-Asian focused diversified SME investment opportunity. It targets above average income and capital growth, with a stated objective to provide shareholders with unique access to a diversified portfolio with access to high-growth Asian economies.
21 Jan 2021
Applying experience in Asian SMEs
Jade Road Investments Ltd provides finance to Asia-based Small and Medium Enterprises (SMEs), a business segment materially underserved by the region’s traditional banks and investors. By targeting that broad subsector, Jade Road can access an immense market in which it can leverage both its capital, and its investment manager’s direct relevant experience.
Jade Road changed its name from Adamas Finance Asia Ltd on 18 January 2021. Its strategy is to build a brand which better reflects its Asian heritage, the wider investment scope which had underpinned its portfolio construction since it appointed a new Investment Manager, Harmony Capital Investors Limited, in May 2017, and its intention to connect Western and Middle East investment capital with Far East markets.
The Company saw a six-fold plus increase in gross portfolio income in FY19 to USD2.24m, in line with the ongoing repositioning of its investment portfolio. That period was pre COVID‑19, but Jade Road does not expect any material impact on portfolio valuations for FY20. Each investment is actively managing its operational exposure to mitigate any potential impact. H1 20 gross income was USD1.19m (H1 19: USD1.25m).
The current value reflects some of the uncertainty in an early-stage investment strategy. Yet the variables and risks appear more than offset by a huge 66% discount to underlying 90c proforma NAV/share, itself based on a conservative assessment of fair value. That gap should close with positive newsflow on investments and progress to stabilise the outlook for the remaining non-core legacy holdings.