Where can you find solid returns in the current market?

Posted on 28th June 2010 by Trevor Reynolds in Blog

A fund for you to consider.  Very solid returns owns 43 buildings in the UK which it rents out to over 15,000 students has almost a 100% occupancy ratio.

This is what Brandeaux own   http://www.libertyliving.co.uk/gallery.php

Fund has a 6 month notice period to redeem but deals on a monthly basis; one can enter this via a life companies fund range.

Brandeaux was a pioneer in providing private student accommodation in the late 1990s, and is now one of the largest investors in the sector. The Fund has a geographically diverse portfolio across the UK, which totals over 15,000 beds in residences located in 18 major university towns and cities.

Brandeaux has developed strong university relationships and now has more than 60% of total rents secured under university nomination agreements.

Brandeaux has achieved 100% occupancy for the 2009/10 university year, as it has had for the last two years. The accommodation is marketed under the Liberty Living brand, which is synonymous with high quality and excellent levels of service. This has engendered good relationships with both universities and students.

Average rent increases across the portfolio for 2009/10 on a like for like basis compared to 2008/09 are in excess of 8.6%, compared with 6.8% for the previous year.

1 YEAR+10.05%

5 YEARS+34.64%

3 YEARS+59.60%

SINCE LAUNCH+141.00%

All returns are shown net of Brandeaux charges.

BRANDEAUX STUDENT ACCOMMODATION FUND (STERLING)

Percentage Growth Total Return

BSAF(Sterling)factsheet_May2010

Returns quoted are net of Brandeaux charges Source: Lipper Hindsight

Investment Minimum GBP 25,000 for a one time lump sum or with a Regular savings plan where you save a bit every month. For full details on how to enter this fund please get in touch with us at Banner.

The end game for Japan? Thoughts from The Absolute Return Letter  

The first country to really feel the pinch could very well be Japan; in the bigger context, Greece is just the appetizer. Japan’s debt-to-GDP ratio has grown from 65% in the early 1990s when their crisis began in earnest to over 200% now. Fortunately for Japan, the high savings rate has allowed shifting governments to finance the deficit internally with about 93% of all JGBs held domestically. This is the key reason why Japan gets away with paying only 1.3% on their 10-year bonds when other large OECD countries must pay 3-4% to attract investors.

Now, predicting the demise of Japan has cost many a career over the years. Despite the ever rising debt, and contrary to many expert opinions, the yen has been rock solid and bond yields have remained comparatively low. I often hear the argument from the bulls that the Japanese situation is sustainable because they, unlike us, are a nation of savers. Wrong. They were a nation of savers.

It is evident that the demographic tsunami has finally hit Japan. The savings rate is in a structural decline and the Ministry of Finance in Tokyo may soon be forced to go to international capital markets to fund their deficits. I very much doubt that non-Japanese investors will be as forgiving as the Japanese, and that could force bond yields in Japan in line with US and German yields. Herein lies the challenge. Japan already spends 35% of its pre-bond issuance revenues on servicing its debt. If the Japanese were forced to fund themselves at 3.5% instead of 1.3%, the game would soon be up.

So if you have Yen sitting in the bank, it is time to move and take advantage of the current exchange rate  . . .

call us 03 5724 5100

Leave a comment