The Guernsey-domiciled Connaught Income Fund Series 2 Fund has been designed as complimentary to the series 1 fund and is based on short term secured lending with a maximum target fund LTV of 65%. It will also have a subordinated legal charge over all properties lent against in case of a default.
Similar to series 1, bridging loan company Tiuta will source, underwrite and manage the individual loans. The fund will focus on short-term lending for property development and renovation. It will also allow money raised to be used by other selected FSA authorised lenders.
It will be listed on the Channel Islands Stock Exchange and is structured as an open-ended unit trust and, while designed to appeal to use within offshore bonds, is also suitable for SIPP, SSAS and other pension and platform investments.
Investors will have the option of remitting or re-investing the income, with the re-investment option offering investors a rate of up to 7.71% per annum. Minimum investment is £20,000.
Alistair Mawdsley, a director at Connaught, said: “We have spent a considerable amount of time designing the structure to series 2 to ensure it is accessible to a much larger audience and is tax efficient…new inflows will initially be restricted to £20m a month on a strictly first come first served.”
Fund Facts:
- Fund size: £20m a month to a target of £500m
- Notice period: 30 days
- Minimum investment: £20,000
- Fund type: Class B authorised unit trust
- Principle manager: Connaught Asset Management Guernsey
