Predictions of a 41 per cent return on a new fund investing in Bulgarian property have been greeted cautiously by IFAs.The Black Sea property fund from Development Capital Management will invest in early-stage residential property developments in seaside and ski resorts. Investors can choose between property shares, which will have full exposure to the market, and capital-protected units, which provide 100 per cent capital protection and are managed by F&C Management. Minimum investment is £30,000. Jersey-registered DCM predicts a return of 12.2 per cent a year on the capital protected units and 41.2 per cent a year on the property shares. Property prices have risen strongly in Bulgaria in recent years and the World Tourism Organisation predicts a rise in Bulgarian tourism from four million today to 12 million by 2020, says DCM. But IFAs are stressing that the Black Sea property fund is not a passport to easy money. Bestinvest business development manager Justin Modray says: “If the fund does manage to deliver, investors in the property shares will probably have a wide smile on their faces. If not, they could lose their shirts. The capital protected units offer a safer route although potential returns, if the fund is a success, are more pedestrian.” Hargreaves Lansdown senior analyst Meera Patel says: “The fund has very high risk attached because it is wholly dependent on Bulgarian tourism. “If a client wanted something racy and spicy, there is potential here, but it is like betting on a horse.”
Lloyd George Management
LG Asian Smaller Companies Fund
The Department for Work and Pensions has been accused of moving away from the concept of pension simplification by not allowing self-investment of protected rights.
Short-term mortgage arrears have shown their first significant increase since 1998, according to figures from the Council of Mortgage Lenders.
The FSA is judging IFAs res-ponsible for product provider marketing material during mis-selling claims, a letter obtained under the Freedom of Information Act reveals.
Cormac Weldon, Artemis US equity manager, looks at opportunities in the banking sector arising from US wage inflation. Click here to read the article.
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