Surrenda Link Investment Fund, the £28m property and TEP fund, is to realise a gain of 48.2% over the initial purchase price of a Derby-based commercial property in its portfolio.
The remaining properties in the portfolio continue to deliver strong capital growth, as well as a rental yield of 8.4% per annum, resulting in an unrealised gain to date of £2.483m.
Ernie Hayes, investment adviser at Surrenda-link, says: “This last week has seen another period of caution for investors; fund managers are moving to protect their portfolios. SLIF could be the secure growth alternative to cash that many investors are looking for.
“Its resilient performance can be put down to the implicit smoothing effect in TEPs, low correlation attributes of property with the stock market, and the complementary nature of property and TEP assets. SLIF has proved its worth in uncertain conditions and has seen a promising start to its fifth year. Interest in the TEP market is picking up as investors look forward to an end to policy bonus cuts.”
The endowment market has welcomed the announcement of strong investment returns on the with-profit funds of the major life offices.
Prudential announced a return of 16.5% gross on their with-profits fund, one of their strongest performances to date. This and further positive announcements by Norwich Union and Standard Life should lead to a further improvement in TEP market confidence, as they continue to compare favourably with other types of long-term investments.
Hayes adds: “Surrenda-link is a specialist in alternative asset investment, with an intimate knowledge of the TEP market. It is able to source endowment policies on behalf of SLIF directly from policyholders thereby avoiding excessive up-front costs.
“TEP investors benefit from the underlying assets which are well diversified between UK and overseas equities, property and fixed income stock.”