Student Accommodation Investments

A return of between 8% – 10%* achieved

annually without exception since

Fund launch in 1999.

An investment worthy of discussion in uncertain times?

Student Accommodation Funds are legendary throughout the wealth management industry. Now in their 9th successful year, their long term performance speaks volumes and the annually targeted returns of between 8% to 10%* have been delivered without fail and on occasions even slightly exceeded. The Fund follows investment objectives and a strategy which has proven to deliver long-term positive returns with low volatility.

FACT: The fund has never suffered a fall in value since the launch 9 years ago#

MAIN OBJECTIVES FUND INFORMATION

• To deliver consistent annualised positive returns of 8% to 10%* while maintaining a profile of low volatility performance
• To invest in student and key worker accommodation throughout the UK                                                                                                   
• To provide investors with access to a fund holding assets with little correlation to traditional asset classes which therefore will be unaffected by movements in stock markets, interest rates or property values                                                                                                                                    
• To provide long term positive returns through a combination of secure income and capital appreciation arising from increasing rental values

WHERE THE FUND INVESTS

The manager of the fund was a pioneer in providing private student accommodation in the late 1990s, and as one of the largest investors in this sector, benefits from economies of scale.

The fund has built a well balanced national portfolio covering 13 cities in the top 20 university markets with 10,300 beds in 33 purpose built residences, mainly at the premium end of the market. 54% of total rents are secured under university nomination agreements which ensure continuing high occupancy.

THE INVESTMENT OPPORTUNITY

The demand for student accommodation is driven by the continuing increase in the number of student in higher education and the attraction of the UK as a leading destination for international students. Sector growth, and thus Fund performance, is not correlated to the UK economic cycle or to the general UK residential property market.

• Annual rent increases
• Bad debts low – typically under 1%
• Occupancy high – typically 98%
• Contracts either with the university or direct-let to students
• Increasing number of overseas student; many demand premium accommodation
• In most UK cities, demand for quality student accommodation far exceeds supply

*Source: Brandeaux  – Student Success Fund – January 2008

#NB…Past performance is not a guide to future performance. The value of shares can go down as well as up.

To find out more information about the Student Success Fund, please contact us here.