Tim Tarpening, Portfolio Strategist and Principal for Pacific Income Advisers, and Stephen Hagan, Managing Partner of iH2 Advisors & Company, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss how Reg S securities provide offshore investors easier access to unregistered US securities.
The iTAMPSM Platform was built to meet the needs of offshore investors, allowing access to a full suite of strategies through a managed account structure. The platform offers a Reg S high-income portfolio managed by Pacific Income Advisers with a minimum investment of $250,000. Reg S is similar to 144A Securities, but without the $100 million minimum investment requirement.
This structure creates a portal for Pacific Income Advisers that allows offshore investors to access its products with lower minimum investment levels. Approximately 75% of the US high-yield market is unregistered 144A securities, while 25% is registered. While a Qualified Institutional Buyer (QIB) can easily invest in 144A securities, typical TAMP or wrap platforms only allow the purchase of registered securities. Reg S allows offshore investors to access 144A securities in a separately managed account (SMA) or a unified managed account (UMA). This structure allows investors to access the entire high-yield market in an account that offers full transparency to the holdings in the bond portfolio.
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