FPIL GLANMORE PROPERTY FUND

A medium risk property fund that invests in UK commercial properties let out on secure medium term leases. Available only in sterling.

The Glanmore Property Fund enables investors to spread their risk over a broad range of properties, the cost of which would normally be prohibitively expensive for a single private investor. The Glanmore Property Fund has to date offered investors quality management, low costs, low risk, income diversification, prudent gearing, quality tenants with good liquidity and good performance. The fund is available for direct investment or through the Friends Provident International Ltd mirror funds (What are mirror funds?) in the Isle of Man. It is only available to lump sum investors directly or through one of the Friends Provident products. The fund is managed by Tilney Asset Mgmt. Intl. Ltd who are based in Guernsey but listed on the Irish Stock Exchange. Cardales Chartered Surveyors are the advisers.

Objective:

• To provide investment opportunity in a higher yielding sector of UK commercial property market.
• To offer a low volatility asset class not correlated with bonds or equities: offering diversification.
• Has modest gearing (maximum 1:1.22) where this allows clear shareholder yield and growth benefit.
• To provide annual compound growth (the sum of net income added to the movements in the capital value of the underlying assets during the period) which will on a rolling five year basis exceed the Investment Property Databank Property Index for similar property investments;
• To achieve approx. 5% annual yield, with capital growth.

Strategy:

• To invest in a diversified portfolio of commercial properties in the retail, retail warehouse, office and industrial warehouse sectors of the UK market (currently approx 50% of the properties are offices, 40% retail premisies and the rest are ligh industrial and leisure)
• To invest 70% of the gross value of the Portfolio into good quality, higher yielding, commercial properties with no individual investment on acquisition representing more than 15% of the gross value of the portfolio;
• The fund has approx 45% of the properties let on leases over 10 years, 36% on 5-10 year leases and 19% under 5 years
• To invest up to 30% by gross value of the Portfolio into properties that stand to benefit from active management in order to have the possibility of achieving a better overall return from the portfolio than standing investments.

The main fund achieved a compound annual growth rate of 12.3% pa in the five years since launch in May 1999 to end April 2004

The FPIL mirror fund was launched in December 2002 and achieved an annual compound growth of 5.5% to end April 2004.

Other Details:

Risk Factors

This fund will be subject to volatility and 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.