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.
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