Loan investments are secured against residential property in the UK

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Consistent returns

Consistent level of dividend income or capital growth without the volatility of stocks and shares.

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Low-risk lending

Risk is managed carefully via conservative lending standards, rigorous credit assessment and ongoing monitoring.

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Alignment of interest

Directors and shareholders of RAW Capital Partners are invested in the Fund on the same terms as its clients.

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Start from £10,000

Invest as little as £10,000 with as short as 35 days notice to redeem investment.

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Overview

The RAW Mortgage Fund is a specialist debt fund whose investment objective is to provide an attractive and consistent level of dividend income or capital growth along with a high level of capital security.

Risk is managed carefully via conservative lending standards, rigorous credit assessment and ongoing monitoring.

We identify low-risk mortgage lending opportunities on quality residential property located in major towns and cities in the British Isles, which are more easily let and more easily sold, even during economic downturns.

The Fund does not lend on high-value properties in London or elsewhere, nor does it lend against development properties or land which typically carries higher risk.

The Fund lends a maximum of 55% of the property valuation on any one property.

Performance

The aim of the Fund is to achieve a consistent NET return of 4.25% for institutional investors. The target return assumes Bank of England base rate at 0.10%. All lending is variable rate, each loan agreement also has a base rate floor, so if the base rate rises above 0.5% so should returns to investors.

Since its inception in May 2015, the Fund has recorded a positive performance every month and has comfortably outperformed its benchmark (the 0-5 year corporate bond index).

Monthly performance
0.38%
Last 12 months
4.48%
Since Inception
28.99%

Portfolio

Average loan to valuation

47%
All loans backed by a first legal charge
Loans made from the Fund are a low proportion of the property valuation, with the maximum permissible being 55%.

Asset allocation by loan value

  • < £250,000
    52%
  • £250,000 - £500,000
    25%
  • £500,001 - £1 million
    17%
  • > £1 million
    6%
Loans are mostly made against smaller, more easily let properties. The majority of loans are less than £300,000.

Loan value by geography

  • Greater London
    74%
  • Other SE England
    8%
  • Rest Of UK
    16%
  • Channel Islands/IoM
    2%
Properties held as security are mostly in South East England, typically inside the M25, but outside central London, and in good commuter locations.

How it Works

Mr Smith has a deposit equal to half the purchase price of an apartment in a major town or city in the British Isles that he wants to buy-to-let. He borrows the other half of the purchase price of the property from the Fund.

Mr Smith owns the property, so he receives rental income arising from the property and benefits from any increase in its value.

The Fund receives the mortgage interest payments from Mr Smith. The Fund also takes security via a first legal charge over the apartment. Investors are therefore protected from the first 50% of any loss in capital value of the property in the event of default.

How It Works
How It Works

Benefits and Risks

Benefits

  • Consistent investment performance and returns for investors from a well established investment strategy.
  • Low volatility. The value of the Fund does not fluctuate up and down like the stock market or many equity-based investments.
  • Strong protection for your capital from underlying loans secured against residential property in the British Isles, the Fund has a first legal charge in each case.
  • The Fund lends against residential property, much like a building society, at low loan to valuation ratios with a maximum of 55% loan to value on a single property and a maximum average of 50% loan to valuation across the entire portfolio of loans.
  • Property values would need to fall very significantly before there was a major negative impact on the capital value of the Fund.
  • Directors’ of the Investment Manager and its shareholders are significant investors in the Fund.
  • All properties are valued independently by a hand-picked panel of RICS qualified valuers. Solicitors are used to complete transactions and security checks.
  • All loans made by the Fund are carefully considered by an experienced Credit Committee.

Risks

  • Depending on the Share Class you choose, a minimum of 35, 90 or 180 days’ written notice of withdrawal is required to access your capital.
  • Redemption proceeds are only available after independent calculations of the Fund valuation have been completed, checked and agreed. Usually this process takes approximately 10 working days after a calendar quarter end.
  • Any investment in the Fund is not protected by the Guernsey Banking Deposit Compensation Scheme.
  • The Fund makes mortgage loans secured against residential property, much like a building society. These loans are each typically for 5 years. Therefore, there is a possibility that investors might have to wait longer for redemptions than the specified notice period.
  • If there was a very significant decline in UK house prices, the capital value of the Fund could be impacted. This may result in losses for investors.
  • There are no guarantees that the historic performance of the Fund can be repeated in the future.
  • Professional counterparties, such as valuers and solicitors, can make mistakes (however, we do check their professional insurance cover thoroughly).
  • Not all risks can be foreseen and so there are other potential risks that may impact the performance of the Fund and the value of your investment.

Key Facts

Fund details

Name
RAW Mortgage Fund

Investment Manager
RAW Capital Partners Limited

Target Net Annualised Return
Up to 4.25%

Currency
GBP

Accumulation / Income
Both Accumulation and Income

Legal (Guernsey)
Collas Crill

Custody
Royal Bank of Canada (Channel Islands) Limited

Prime Broker
ADM Investor Services International, London

Inception Date
May 2015

Fund Domicile
Guernsey

Subscriptions
Monthly

Redemptions
Quarterly or monthly, depending on share class 35, 90 or 180 day notice

Auditor
Grant Thornton

Administration
Vistra Fund Services (Guernsey) Limited

Fund Manager
Tim Parkes

Fund structure

The RAW Mortgage Fund is a cell of RAW Alpha PCC Limited, a protected cell company registered with limited liability in Guernsey on 10 December 2012 having registration number 55993.

The Fund is authorised as an open ended Class B scheme by the Guernsey Financial Services Commission.

Management fees & charges

The Investment Manager will charge a single transparent management fee in each share class. The Manager will bear the cost of the Fund's Administration, Custody, Audit and Directors.

Further details of these management fees and transactional fees are included in the Prospectus (known as the Scheme and Supplemental Particulars) for the Fund which we will be delighted to send to you on request.

Please call us on +44 1481 708250 or email the team [email protected]

 

Corporate governance

Assets are held in the name of the Fund and are under the control of its Custodian. The Fund's assets are valued independently by a professional fund administration firm, as required by regulation. The administrator is also responsible for reporting to investors and for ensuring fair treatment of investors in line with the Prospectus. The Fund is domiciled in Guernsey and oversight of the Fund is provided by an independent board of directors.

RAW Capital Partners Limited is responsible for managing the assets of the Fund, it is regulated by the Guernsey Financial Services Commission (2101792).  RAW Mortgage Fund is a cell of RAW Alpha PCC Limited which is an authorised collective investment scheme regulated by The Protection of Investors (Bailiwick of Guernsey) Law, 1987, consolidated (2103625) by the Guernsey Financial Services Commission.

Governance Gobstopper Diagram

Ready to start investing?

The RAW Mortgage Fund is a specialist mortgage lending fund designed to provide an attractive and consistent returns with a high level of capital security. Target net annualised floating returns of 4.25%*.

 

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