Second Estates has launched a new fund giving investors exposure to the UK holiday lettings market. The fund provides sophisticated investors, HNWIs and institutional investors with access to an alternative real estate asset class, offering a share in any rental income and increase in property values over time. The fund is open for further commitments and has a target of up to £100 million in assets. Investors in the fund receive a fixed rate coupon of six percent pa, as well as further potential returns from property price increases and cash flow generated by the business. The fund has a target return of 12-15 percent per annum, which includes quarterly payments of the coupon from year two onwards. The launch of the fund follows Second Estates successfully securing its first tranche of investment which will be deployed into UK holiday let properties in the run up to the summer season.
Legal & General Investment Management (LGIM) has launched the Legal & General Global Infrastructure Index Fund (the Fund), a UCITS compliant Unit Trust. The Fund provides an opportunity to invest in global listed infrastructure in a cost effective and liquid index solution, and aims to offer both income and capital growth to investors by tracking the performance of the FTSE Global Core Infrastructure Index. The Fund comprises of over 200 index constituent holdings from over 30 countries, providing a broad exposure to listed companies that own, operate, manage or maintain essential infrastructure across a range of sectors, including utilities, industrials, and oil and gas.
Funds advised and managed by YFM Equity Partners (YFM), the specialist private equity fund manager have backed an investment into Eikon Group Limited, a digital post-production services for the motion picture and broadcast industry. YFM’s investment comes from its two advised VCTs, British Smaller Companies VCT plc and British Smaller Companies VCT2 plc alongside the YFM Equity Partners 2015 Co-Investment LP. YFM’s funds will be used to support the expansion into the US where a new state of the art studio will be built in Burbank, Los Angeles as well as continued investment in the development of technology to enhance the service delivery to customers.
According to the quarterly BMO Global Asset Management Multi-Manager FundWatch survey, of the 12 main IA sectors, the IA UK Smaller Companies sector registered the highest number of funds delivering top quartile returns in each of the last 12-month periods over three years at 6.4 percent, as at the end of Q1 2018. This was above the industry average over the same period, with only 19 (1.7 percent) of the 1,118 funds analysed achieving this feat. Over the same period, the sector also topped the charts for the sector returning the highest proportion of funds performing above median consistency at 17 percent. Of the total funds analysed, only 125 (11.2 percent) of the 1,118 funds achieved this feat compared with nine percent at the end of Q4 2017. Coinciding with this fund performance consistency, the IA UK Smaller Companies sector was the strongest performer of all UK equity sectors in the first quarter of 2018, although still lost ground during the quarter falling 3.1 percent.