Affinity Consulting Group

Investments

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Affinity Consulting Group  

 

Brandeaux

Brandeaux Property Funds:

  • Brandeaux Sterling Fund
  • Brandeaux Dollar Fund
  • Brandeaux Euro Fund

Price: 

       

Price date: 

  

 
A low risk fund of student accommodation, ground rents and "key worker" accommodation in UK. Available in $, &

These are not retail funds and are only available through a Life Insurance Portfolio Bond.

Brandeaux Sterling Fund

The Fund invests in ground rent properties throughout the UK and in high quality student accommodation in major UK university towns and cities.

Objectives:

  • The main objective of the Fund is to provide institutional investors, on behalf of their clients, with access to an actively managed Fund holding assets with little correlation to traditional asset classes.
  • The Fund seeks to deliver consistent annualised positive returns of between 8% and 10% over a term of 5 to 10 years, while maintaining a profile of low volatility.
  • The Fund is designed to provide medium to long term performance through investing in assets in UK property portfolios focusing on ground rent properties and high quality student accommodation.

Brandeaux US Dollar and Euro Funds

These funds invest in ground rent properties throughout the UK and in high quality student accommodation in major UK university towns and cities.

To minimise the effect of currency movements of the US dollar and euro against sterling, the fund manager employs a currency hedging programme drawing on the expertise of professional currency management. This is limited to the goal of neutralising any movement between sterling and the dollar/euro so as not to affect the performance achieved by the property portfolios. The currency management is not intended for performance enhancement as a result of currency movements.

Objectives:

  • The funds provide the opportunity for US dollar or euro denominated investors to participate in a fund managed by the same experienced team of specialists who have consistently produced positive returns throughout the range of Brandeaux funds.
  • The funds have the objective of producing low volatility returns in excess of rates obtainable on US dollar or euro deposits, whilst ensuring that the dollar and euro denominated fund performance is not significantly affected by currency movements of the dollar and euro against sterling.
  • The funds follow the same investment criteria investment process, research sources and scope, portfolio construction and asset allocation strategies as the Brandeaux Sterling Fund.

Strategy

Ground rent portfolio construction:
The criterion is to invest in residential freehold properties with highly secure income streams from a large number of occupiers. Emphasis is placed on prime central London properties with significant reversionary values. The intention is to obtain returns from these properties from within three categories:

  • Income from rent paid by the tenants.
  • Capital appreciation from opportunities, such as granting lease extensions to tenants and restructuring leases.
  • Capital appreciation gained from approaching reversionary dates.
  • Careful attention is still paid to location to minimise the effect of market price fluctuations in the UK property market.

Student accommodation portfolio construction:

  • The student accommodation market has become an emerging asset class within the property sector.
  • The criterion is to invest in a portfolio of purpose built properties for students and key workers. Emphasis is towards acquiring properties in the best locations offering higher quality accommodation at affordable rents while still producing an income yield that meets the funds’ investment objectives.
  • Brandeaux is creating investor value in the funds over the long term by acquiring and managing a significant portfolio of accommodation in this sector.
  • Liberty Living PLC is the property asset manager and has core skills in acquiring quality student accommodation. It continues to develop a unique brand name by which it markets and manages the student portfolio. The brand conveys high standards in service and value in the sector and is exclusive to the Brandeaux student portfolio.
  • Liberty Living as a brand name seeks to build upon the services it offers to students and universities by emphasising the importance of high quality and well trained staff at all levels of its management team.

Track Record:

Annual Volatility:  Low
(insulated from domestic UK property prices due to long term ground rent contracts and student accommodation being a niche market in constant demand.)

Annualised Returns:  

  1. Brandeaux Sterling Fund (launched 10/10/03):  9.29% pa
  2. Brandeaux US Dollar Fund (launched 25/7/03): 7.35% pa
  3. Brandeaux Euro Fund (launched 25/7/03):        7.35% pa

(Figures as at 31/12/05 from launch, compounded annually on the fund anniversary date. Perfromance is quoted net of Brandeaux's charges.)

Charging Structure:

    Management Fee: 

    1.5%

    Initial Fee: 

    1.5%

    Redemption Fee: 

    Nil

Other Details:

    Currency: 

    USD, Sterling, EUR

    Minimum Entry: 

    5,000, $10,000 or 10,000

    Dealing: 

    Weekly

    Currency Hedging: 

    Yes

This fund may go down in value as well as increase. This risk is reduced the longer the investment is held. Past performance is no guarantee of future performance.