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Darren Beddard Group moderatorThe company name is only visible to registered members.FTAdviser.com - Blue Gate launches property income fund
The secured income fund allows investors to capitalise on current market conditions and provides an alternative product that offers a high yielding regular income to investors quarterly while protecting capital.
The fund is offering annual returns to investors of 9 per cent or 2.25 per cent paid quarterly.
Any income in excess of 9 per cent a year will be rolled up in the fund and be distributed to investors at the end of the fund's life.
Tamlyn Stone, director of Blue Gate Capital, said: "As poor returns are set to continue for the foreseeable future and the global recovery may not be as strong as many have predicted, there is still considerable value in this area over the medium term for investors.
"This structure addresses the needs of investors today in a market of low interest rates, market volatility and insecurity by providing a fund that is not correlated to traditional asset classes such as equities, bonds or property and adds a level of diversification to investor's portfolios.
"Investors need income and want the security of tangible assets to create it."
The secured income fund derives its income from lending money on an annual fixed rate to financial institutions that lend short term finance secured against property assets.
As the fund is secured against property and has a fixed coupon, Blue Gate said the fund would not be affected by stock market movements or fluctuations in interest rates.
There is a loan-to-value requirement of less than 65 per cent, and the minimum investment for the fund is £50,000.
for more inforation on the fund please contact us on 0161 838 9070 or email d.beddard@cisplatform.com
http://www.ftadviser.com/FTAdviser/Investments/AssetClass/Pr...
- 09 Nov 2009, 4:29 pm
