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Keydata says criticism of its US property bond ‘missed point’

Keydata sales director Mark Owen has dismissed research by IFA AWD Chase De Vere which criticised the group’s income property bond.

AWD research manager Justine Fearns said Keydata’s six-year residential bond might struggle to find suitable investments to renovate in time to establish sufficient stable revenue streams from the US residential properties it is targeting.

The research suggested that general property returns are likely to reduce in future and investors should treat property as a diversifier, not a get-rich-quick scheme. AWD recommended three alternative UK property funds from M&G, Norwich Union and Scottish Widows Investment Partners.

Owen says AWD missed the fact that the Keydata fund has already bought its first two properties in Orlando and Washington DC. He adds that the negativity around future returns in the UK market ignores the fact that the fund is in US residential property which is tipped to outperform the UK.

The bond matures in November 2012 and offers a fixed annual income of 7 per cent or quarterly income of 1.75 per cent.

A Keydata spokesman says: “They are saying investors need to diversify away from UK property and then recommend three alternative UK property funds. This is in the US market.”

Owen says: “AWD has missed the point. The bond is already seeded with the first thousand units in two locations. These properties are already 85 per cent let so stabilisation only needs to be carried out on the vacant units.”

“The research cites comments from NU saying do not move any more money into UK property but look elsewhere. We are looking for a sensible return from stabilised properties with the right yields.”


Tenet chairman Kayes retires

Tenet Group chairman Barry Kayes has announced his retirement after more than 10 years with the firm. He joined M&E network in February 1996 as a non-executive chairman, eventually completing a management buyout in April 2000 with chief executive Simon Hudson, when the Tenet Group was formed.Kayes became executive chairman, the post he has held […]

Aifa backs the FSA focus on providers’ responsibilities

Aifa has praised the FSA’s paper on provider/distributor responsibilities, saying providers can no longer stand by in “splendid isolation” allowing advisers to be blamed when things outside their control go wrong. Director general Chris Cummings says advisers have been unfairly blamed for too long for problems with marketing and product design. He says that the […]

Lenders look abroad for a green example

Housing minister Yvette Cooper’s call for the mortgage industry to adopt environmentally-friendly homeloans has been met with a cool reception. Most lenders say they have little experience of what a green mortgage is and need further guidance. The Government failed to consult the industry before making the request, just as it failed to consult the […]

Widows is slashing 200 jobs in customer services division

Scottish Widows is to cut 200 jobs after a review of its customer services division. The cuts are being made because Widows wants to consolidate back-office processing at its Chatham operation which employs 450 staff. All customer-facing services will operate from Edinburgh and 200 staff will be axed, with 75 of these roles being considered […]


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