Expanded Investment Focus

22 July 2021

RNS

JADE ROAD INVESTMENTS LIMITED

("Jade Road" or the "Company")

Expanded Investment Focus

Jade Road Investments Limited, the London-quoted, pan-Asian diversified investment vehicle focused on providing shareholders with attractive uncorrelated, risk-adjusted long-term returns, is pleased to announce that the Company's investment focus will expand to look to invest in Asian High Growth Companies via equity (in listed companies and/or pre-IPO investments) as part of its existing investment policy.  While Jade Road will consider opportunities in all sectors as they arise, potential opportunities in Technology, including Health-Tech, Med-Tech and Fin-Tech will be prioritised.

The Total Allocation under this expanded investment focus will be no more than 10% of Jade Road's present NAV (as of 31 December 2020: USD106.4m) and no more than 20% once the NAV exceeds USD150m. Investments in each company will not exceed 5% of the Total Allocation, in order to mitigate risk through diversification. Potential investments will be sourced through brokers and financial institutions as well as through various networks established on the ground in Asia by the Company's Directors and its investment manager, Harmony Capital.

The relatively small portion of capital allocated to equity presents reasonable upside opportunities, while simultaneously protecting the Company against possible risk through a granular sub-portfolio, whose overall NAV attribution would be less than 20% at the very maximum.

Acquiring equity in high growth companies presents Jade Road with the opportunity to accelerate the growth of its NAV through capital gains in successful investments. The Company believes that investing in the equity of pre-IPO companies also increases the feasibility of an exit strategy from an eventual listing on the public markets. 

Jade Road invests in visionary entrepreneurs developing innovative companies that solve problems in their industries. The Company is dedicated to the success of each of its portfolio companies and believes that their products and/or their services can be transformative on a local and global scale.

Jade Road is principally focused on early-stage investments.  The company aims to bring investment opportunities often reserved for the private market of venture capital firms to the public market via its own shares being publicly traded.

John Croft, chairman of Jade Road Investments Ltd commented: "With many high growth start-ups staying private longer, access to these companies has been out of reach for the average investor.  Jade Road is uniquely poised to eliminate the barriers to investing in these start-ups and provide investors with access to these opportunities of potential high returns."

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About Jade Road Investments Limited

Jade Road Investments Limited (Jade Road) is quoted on the AIM Market of the London Stock Exchange and is committed to providing shareholders with attractive uncorrelated, risk adjusted long-term returns from a combination of realising sustainable capital growth and delivering dividend income.

The Company is focused on providing growth capital and financing to emerging and established Small and Medium Enterprises (SME) sector throughout Asia, well diversified by national geographies, instruments and asset classes. This vital segment of the economy is underserved by the traditional banking industry for regulatory and structural reasons.

The Company's investment manager, Harmony Capital, seeks to capitalise on its team's established investment expertise and broad networks across Asia. Through rigorous diligence and disciplined risk management, Harmony Capital is dedicated to delivering attractive income and capital growth for shareholders with significant downside protection through selectively investing in assets and proactively managing them.

Harmony Capital is predominately sourcing private opportunities and continues to create a strong pipeline of attractive income generating assets from potential investments in growth sectors across Asia, including healthcare, fintech, hospitality, IT and property. 

For further information, please visit the Company's website at https://jaderoadinvestments.com and follow the Company on Twitter (@JadeRoadInvest).