Marine Capital launches first U.K. shipping fund

Marine Capital launches first U.K. shipping fund London-based Marine Capital Ltd. on Monday launched the United Kingdom’s first major investment vehicle for the global shipping sector.
   Eclipse Shipping Ltd. aims to build a portfolio of directly held shipping assets operating as a private, closed-end fund with an onshore operating structure within the U.K. Tonnage Tax regime. The managers have targeted an annual net return of 20 percent to 30 percent and the fund will have a life of seven years, although earlier exit may occur depending on market circumstances.
   “This fund presents investors with a unique opportunity to benefit directly from a sector uncorrelated with major equity markets and previously untapped by almost all U.K. investors,” said Anthony Foster, chief executive officer of Marine Capital and managing director of Eclipse. “Returns have always been solid, averaging 24.5 percent annually, ungeared, over the past 10 years, and the outlook continues to be positive. An investment in ships acts as a proxy for direct investment in developing economies, without the same risk. And while the dry cargo spot market has shown an apparently dramatic drop from all-time highs, there will continue to be opportunities to invest both in dry and our other key sectors of containers and tankers.
   “Shipping has a proven history of high IRRs, historical returns beyond those offered by major stock markets and appears relatively unaffected by the credit crunch and resulting turbulence elsewhere in capital markets. Should there be a knock-on effect on ships' prices, it is likely to be an even stronger buying opportunity,” Foster said.
   “World trade growth, measured in ton-miles, always exceeds GDP growth. With trade growth weighted towards the large industrializing economies, such as China, Brazil, Russia and India, we believe shipping returns will remain above long-term historical averages and any sectoral dips should only be seen as further signals to buy.”