Loan Investments Backed by Residential Property in the UK

High level of capital security, consistent returns.

Consistent Returns

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

Low-risk Lending

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

Alignment of Interest

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

Start from £10,000

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

Our Commitment to You

The RAW Mortgage Fund is a specialist mortgage lending 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.

Fund Performance

The aim of the Fund is to achieve a consistent NET return of 4.00% for institutional investors. The target return assumes Bank of England base rate at 0.10%. All lending is variable rate, so if the base rate rises so do 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 +0.37%
YTD +2.96%
Since inception +22.58%

Low-risk Lending

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.

Current Investment Portfolio

Average Loan to Valuation Ratio

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

Loans are mostly made against smaller, easily let properties. The majority of loans are less than £300,000.

Loan Value
by Geography

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.

Summary of Benefits and Risks
(Private investors should read these carefully)

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 Investment 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 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.

This summary is based on performance of the Fund to date and the Investment Manager’s reasonable expectations of future performance. Detailed information is available in the Fund’s Scheme and Supplemental Particulars. If in doubt, you should consult a financial adviser.

Key Facts

Name
RAW Mortgage Fund
Investment Manager
RAW Capital Partners Limited
Target Net Annualised Return
Up to 4.00%
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
JTC Fund Group
Fund Managers
Tim Parkes, Richard Avery-Wright

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 Administration, Custody, Audit and Directors.

Further details of these management fees and transactional fees are included in the Scheme and Supplemental Particulars for the Fund.

Corporate Governance

Assets are held in the name of the Fund and are under the control of its Custodian. The Fund is domiciled in Guernsey and oversight of the Fund is provided by an independent board of directors. RAW Capital Partners Limited is regulated under the Protection of Investors legislation by the Guernsey Financial Services Commission.

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