The Connaught Income Funds Series 1 and 2 are both Unregulated Collective Investment Schemes and lend funds through its Specialist Partner, Tiuta plc, the short-term and bridging lender.
Funds within Series 1 finance bridging loans with a target LTV of 75%, while funds within Series 2 finance short and medium-term secured lending with a target LTV of 65%.
The current average LTVs in all Income Funds is below 60%. Series 2 is an offshore version of Series 1 and it is an authorised Unit Trust regulated by the Guernsey Financial Services Commission.
Connaught believe it’s Series 1 and 2 funds are injecting much-needed funding into the residential market, at a time when many of the major high-street banks show little appetite to lend, preferring to focus on shoring up their balance sheets.
Since the launch of the Series 1 Income Fund in July 2008, Connaught have funded over 550 loans to the sector.
Alistair Mawdsley, Director of Connaught, commented:
“Connaught now has two bridging loan funds for which Tiuta is the Specialist Partner. These funds currently add £130 million to the lending market at a time when funding from more traditional lines continues to be restricted.
"The Series 1 and 2 Income Funds are complimentary; Series 1 focused on onshore investment with Series 2 being specifically designed for the offshore bond, QROPS and non UK-markets.
"In a market where positive growth and good income are both difficult to find, funds that achieve both are in short supply but this is exactly what the distribution or reinvested options for our income funds offer.”
Steven Nicholas, Chief Executive of Tiuta plc, commented:
“We continue to have a quality funding relationship with Connaught Asset Management and the fact that over £130 million of lending finance has been made available to us through the Income funds is a significant achievement.
"There continues to be strong and ongoing demand for short-term and bridging loans as many other finance avenues are closed to borrowers. As experienced lenders in this sector we can ensure the money is used correctly and that it is offered to the highest quality cases in the market.
"We will continue to work closely with Connaught to ensure we can support all those borrowers who are seeking short-term and bridging loans, and we envisage a very successful end to 2011 and a strong opening to 2012.”
Connaught recently announced a series of dates and venues in January and February 2012 for its Unregulated Collective Investment Schemes seminars on the regulations surrounding UCIS and their application in client portfolios.
