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Stirling Mortimer Property Fund |
Frequently Asked Questions:
 What
are the charges?
What
is the past performance?
Is
it a fully regulated fund?
What
is a Protected Cell Company (PCC)?
Does
that mean pensions, ISA, PEP, FURB and EBT can invest
then?
So
I can use this as a fund switch not just for "new
money?"
So
what are the guarantees?
Which
bank gives this guarantee and why?
Is
the investment 100% secure then?
How
do I submit business then?
Stirling
Mortimer is a relatively small, new company who
else is involved?
Who
are the directors of the fund?
How
much can you raise?
Is
there a minimum investment level?
How
does the investment work?
What
is the duration of the investment and can I access
my funds during that time?
This
all seems too good to be true?
What
are the charges?
There is no initial charge
and a 1.5 % annual management fee
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What
is the past performance?
Our previous cell achieved
145% growth in the last two years.
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Is
it a fully regulated fund?
Yes, it is fully listed
on the Channel Islands Stock Exchange and an
approved investment for the GFSC and FSA.
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What
is a Protected Cell Company (PCC)?
It is a type of fund listing
that enables us to ensure that we can ring fence
our investors against future projects and ensure
they receive the full return due to them.
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Does
that mean pensions, ISA, PEP, FURB and EBT can invest
then?
Yes, these can all invest
as well as direct corporate and personal money.
We have received investments from James Hay,
Winterthur, Scottish Equitable, Skandia, Standard
Life and L&G and Brooklands SIPP among many
others.
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So
I can use this as a fund switch not just for "new
money?"
Yes, as long as it is a self-investable
contract.
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So
what are the guarantees?
Essentially it is guaranteed
that we will make a minimum gross return of
15% over the next two years. Also in the unlikely
event property has to be sold at a "loss",
the fund still receives 100% of its investment
back plus the 15%.
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Which
bank gives this guarantee and why?
The guarantee is provided
by various banks, which are all Moody's A2 rated
or stronger. Previous Cells have been guaranteed
by Caixa Galicia. The
guarantee is provided because the cash is already
lodged in Escrow accounts with the lawyers.
The bank guarantee also ensures a return of
investment plus 15% in the unlikely event of
Majestic ceasing business.
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Is
the investment 100% secure then?
Yes, we genuinely believe
so bearing in mind you may face a "currency
risk" as the fund is denominated in Euro.
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How
do I submit business then?
The application document (Subscription
Agreement) contains all the necessary forms and
contact points.
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Stirling
Mortimer is a relatively small, new company who
else is involved?
PKF, Royal Bank of Scotland,
Ozannes, Heritage International Fund Managers,
BDO Novus and ELS are all involved in this cell.
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Who
are the directors of the fund?
They are Catharine Walter,
Keith Le Poidevin, Philip Bowman, Timothy Clink
and Richard Roberts.
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How
much can you raise?
We can raise €80m for
this cell.
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Is
there a minimum investment level?
Yes, the minimum investment
is the equivalent of €25,000 (approx £17,000
at present).
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How
does the investment work?
Basically, it revolves around
the closing of the discount to zero on the off-plan
price of property contracts during construction.
We would assess this is in the order of 45%
and as only a 45% deposit is needed this should
give rise to substantial returns in the two-year
anticipated timescale. Coupled with this is
the fact that Cape Verde is an emerging market
and the potential for capital growth is excellent,
with many pundits believing we will also see
up to 50% growth in property prices over the
next two years.
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What
is the duration of the investment and can I access
my funds during that time?
The redemption date is 31
January 2010, and it is a closed cell so we
do not anticipate
a secondary market being available.
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This
all seems too good to be true?
I hope you agree this is a
truly remarkable investment opportunity that has
massive upside potential and is underpinned by
a cash backed guarantee from a Moody's A1 rated
bank. All we can say is look at the names of the
huge organisations involved and bear in mind the
level of due diligence that has had to be undertaken
to get a full Stock Exchange listing as well as
give the necessary comfort to the financial institutions
listed above.
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