Stratus Alternative Funds, managed by NCB Capital Markets (NCBCM), one of the region’s leading investment banks, has announced the launch of its Tourism Response Impact Portfolio (TRIP).

The fund is designed to meet specific needs of businesses that operate in the tourism sectors within the region, by designing bespoke financing solutions for various stakeholders in the industry.

The announcement took place at the NCBCM-sponsored Island Finance Forum 2021 held virtually on April 13-16.

Economic significance to the Caribbean region

TRIP aims to provide tourism players with creative funding solutions needed for retooling and sustaining their operations while facilitating broader investor participation in the fund.

Simone Hudson, assistant vice president, Alternatives & Fund Management at NCBCM, said: “Tourism is a major contributor to GDP and employment within the Caribbean Region.”

Hudson added: “We understand that the industry has been hit hard by the pandemic, however, as vaccine penetration increases across the world, there is certainly light at the end of the tunnel. We are committed to joining our hoteliers and other tourism stakeholders on the ride and providing suitable solutions to help them get through this lull via TRIP.”

The regional travel and tourism industry, which contributes up to about 33 per cent of GDP and over 52 per cent of export receipts, was hard hit by the onset of the coronavirus (COVID-19) pandemic, resulting in a 45 per cent decline in international arrivals, billions of dollars in lost revenues and more than a million job losses in 2020.

TRIP is the fourth fund being managed under the Stratus Alternative Funds SCC, which provides investors with a broad range of non-traditional high-yielding alternative investment solutions.

INCREASED FOCUS ON SUSTAINABLE DEVELOPMENT

Its launch comes against the backdrop of increased focus discussions on sustainable development which was the central theme at the Island Finance Forum a few days ago.

Timar Jackson, manager, Origination and Structuring, NCB Capital Markets, highlighted at the forum that “financing a Blue-Green recovery for the Caribbean will require innovation in financing structures; the development of new risk assessment frameworks; and among other things, the lowering of the cost of funds as part of financing terms for players in the industry.”

With the launch of TRIP, through Stratus, investors will be able to diversify their portfolios and to gain higher returns than traditional wealth products such as stocks and bonds.

“Stratus Alternative Investments is transformative; it represents the future of boutique investment banking and its creation tangibly demonstrates our commitment to the deepening of the regional capital markets,” said Steven Gooden, CEO at NCBCM.