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It is unusual in that it is based on the rental income from US properties and not on forecast capital appreciation. There is a minimal downside risk. In fact, I believe it is safer than investing in bonds where the average return over the past five years on corporate bond funds was only 4.9 per cent a year, government bonds 3.7 per cent a year and other fixed interest bonds 5.4 per cent a year (to August 1, 2006). The US property manager specialising in this niche sector of the market has a 15-year track record and a portfolio of properties worth over $1bn. Even if interest rates rise and the US housing market cools, the apartment rental business, in which this fund invests, becomes stronger as people shift from buying to renting property. Furthermore, investors are not directly exposed to any borrowing. The risks are minimal, the main one being that the property managers being unable to achieve sufficient occupancy rates but with their experience there should be little risk of this, especially as the investment will be widely spread. While the investment is for a six-year fixed period, it can be cashed in earlier but then there is some risk to capital although again this is likely to be very small. This is an ideal investment for elderly and conservative investors and also as part of any fixed interest portfolio. It is available for investment in new Isas and Isa or Pep transfers and for pension investments through Sipps or SSASs, where the income is paid gross. For those investors worried about the future of the stockmarkets, Isas and Pep transfers are an ideal way of achieving high tax-free returns.