Connaught's Guernsey Fund Sees Strong Interest
Thursday, February 24, 2011
Connaught Asset Management is attracting growing interest with its latest fixed
income fund, which was recently launched as a Guernsey Financial Services Commission
(GFSC) authorized fund and listed on the Channel Islands Stock Exchange (CISX).
The Connaught Income Fund Series 2, offering returns of up to 7.5% per annum
with no fees or costs payable by the investor, is the latest asset backed fund
that raises finance for short-term residential property lending in the UK.
James Bromhead, Connaught’s contact in the Channel Islands, said: “The
fund is capitalizing on the demand for short-term secured loans due, in part,
to a shortage of traditional high street mortgage finance and their specialist
partner Tiuta Plc is inundated with loan requests for development finance.”
Investments are secured by charges against the borrower’s residential
property, using conservative loan to values and subordinated loan agreements
held to protect the investor’s capital and a guarantee provided by the
Specialist Partner to protect the fixed income returns.
Peter Niven, Chief Executive of Guernsey Finance, said: “This is another
example of an innovative use of the Guernsey fund regime. This fund provides
the potential to earn greater returns than would otherwise be available through
cash, which is earning at particularly low levels in the current climate.”
Kleinwort Benson (Guernsey) Limited are the trustees and Kleinwort Benson (Channel
Islands) Fund Services Ltd are the administrators.
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