Arc European Property Fund

The Fund is an open-ended investment company (OEIC), which works in a very similar way to a unit trust, except that an OEIC is a public limited company (Plc). ARC Fund Management Limited (ARC), the fund manager, is launching what it believes to be the first such fund that will invest in European property.

An OEIC has a company structure, so that when you invest, you will hold shares. It’s open-ended, which means that the fund can get larger or smaller, depending on the number of investors who wish to buy or sell shares. OEICs are a relatively new form of investment vehicle. They are increasingly replacing unit trusts, which are very complex in legal terms.

One advantage of an OEIC, fund is that it has a single price, directly linked to the value of the fund's underlying investments. All shares in the fund are bought and sold at this single price. This contrasts with unit trusts, which have different buying and selling prices.

The fund will be a medium risk investment offering exposure to a diverse range of property developments throughout Europe, with a particular emphasis on Spain, which is considered to be one of the leading destinations in Europe for Britons and other Northern Europeans seeking a second home. Investor money will be pooled together, hence the cost of running the Fund will be minimised and you will benefit from increased diversity, thereby spreading risk.

Arc will invest in a variety of European Property assets and property development opportunities which may also be combined with investments in transferable securities, money market instruments, deposits, units in collective investment schemes, government and public securities, immovable property and gold.

Fund Overview:

Take advantage of the Arc European Property Fund's European property investment strategy:

• The expected pre-tax investment return over the medium term is between 6 and 8 per cent per annum
• Benefit from Arc Fund Management Limited’s (Arc Fund Management) expertise in fund management
• Property funds historically provide relatively secure, low-risk performance over the medium term
• Arc Fund Management has a strong relationship with a leading property agent in Spain
• The Arc European Property Fund is intended to have a diverse portfolio which will include prime residential developments and emerging holiday home destinations
• An estimated 2.3 million British people will settle abroad during the next eight years which is expected to maintain the growth in property prices in those areas where they settle
• Subject to Government approval there may be an opportunity to hold the OEIC in a SIPP or SSAS and benefit from 50% gearing from 5th April 2006
• Invest with as little as £5,000
• Dividend paid half-yearly
• Advisors include KPMG, The Bank of New York and Savills

Appeal of the Arc European Property Fund

In the directors’ opinion there is a certain comfort in investing in property because it is a solid tangible asset, something you can see and touch. It is one of the major reasons why investors say that "bricks and mortar" inspire them with confidence and security.

It is a trust that has rewarded investors with favourable returns. Property has historically provided a high return and low-risk performance over the long-term.  The return becomes even more impressive, the October 2003 European Public Real Estate Association report found, when investments include European property.

The Arc European Property Fund will be carefully managed to maximise returns, balanced with low risk. Arc Fund Management, is looking to establish relationships with estate agencies across Europe and will invest in a broad range of property developments which have the potential to produce a significant income. The range of investments will include: buying land and developing it for sale; acquiring new property for sale; buying commercial property; and securing the exclusive rights to sell on prime developments, so taking advantage of the rising prices through the building programme. The profit sale will provide additional capital for reinvestment.

The fund will hold a proportion of its assets on deposits and government/transferable securities in order to assist in the efficient operation of the fund, enhance performance and spread risk

Sterling denominated. Minimum investment GBP5,000.

Invest through ^{investoffshoredirect.com} and the initial charge is reduced

E-mail us now to get prospectus and fact sheet for this fund