AIPF
Alderic Investment Partners Fund
Investors looking for a high-income return from their investments face a difficult challenge, particularly in low inflation and low-interest rate environment. If income stability is added to the investor’s requirements, then the investment choices can be limited. Alderic Capital (“Alderic”) has developed the Alderic Investment Fund (the “Fund”) to provide investors with a solution. The Fund aims to deliver a stable and secure, high-income return by investing in the commercial property market in the UK. At the same time, investors have the potential for growth in the capital value of their investment.
Investment Strategy and Objectives
The Fund aims to provide a high and stable income similar to that available in the commercial UK property investment market as a whole. The Fund also has the potential to produce capital growth. Investing directly and, if appropriate, indirectly in commercial property assets in the UK, the Fund’s investment strategy is to create a balanced and diversified portfolio. This requires investment in a broad spectrum of properties spread principally across the office, retail and industrial sectors. Further diversification and risk control can be achieved by maintaining a range of high-quality tenants, in various locations across the UK. The Fund will also invest in early-stage mining projects and Asset-Backed Direct Investment Opportunities (Debt and/or Equity) in companies with strong management experience for a maximum duration of 36 months with an average weighted duration of 18 months and participate in investments to FinTech, Leisure and Hospitality and AI Technology startups which are driving innovation in financial services.
The investments of the Fund consist primarily of freehold and leasehold land and buildings. It is the policy of the Fund Manager to spread these investments over a wide range of properties, so as to maintain a balanced investment portfolio with capital growth potential and beneficial yield. Properties may also be acquired, developed or otherwise dealt with jointly alongside other investors, particularly where these provide Unit Holders with exposure to property assets of a type or size that would not be appropriate for the Fund’s portfolio if they were to be held directly.
About The Manager
Alderic has an international client base which includes some of the world’s leading corporate and private investors. It offers a range of property investment and management services to investors. As a highly innovative company, Alderic has pioneered the use of investment vehicles and derivative products to enable investors to access the property market indirectly. It offers a unique investment fund designed for institutional and private investors that invest in specific types of property or single assets in the UK and continental Europe. With continued innovation, an experienced team and a sophisticated investment process, Alderic is able to support a wide range of UK and international investors.
Fees and Charges
There are a number of charges and costs that are incurred when you invest. The charges that you pay are used to cover the costs of running the fund, including our charge for managing the fund. These charges are taken directly from the assets of the fund, and the value of your investment will be lower as a result. Charges can vary from fund to fund and between share classes. Further information about specific charges can be found in the relevant Fund Prospectus.
One-Off Charges
Entry Charge: Often referred to as an initial charge this is the maximum that may be taken from your investment before the deal is placed in your chosen fund.
Exit Charge: Often referred to as a redemption charge, this relates to the amount of money that may be taken from your investment before the proceeds of your investment are paid to you.
Annual Charges
There are a number of charges and costs borne by the funds each year as described below.
Ongoing Charges Figure (OCF): The OCF is an industry standard way of measuring the annual cost of investing in a fund. It is used to give a snapshot of how much it will cost to invest in the fund annually. It is based on the last financial year's expenses and may vary from year to year. For newly launched funds, which do not have the previous year's information to calculate the OCF, the figure is estimated. The OCF includes most of the fees and charges incurred by the fund including the annual management charge, registration fee, custody fees and distribution cost but excludes any One-Off Charges (e.g. entry, exit or switching charges), Incidental Costs (e.g. performance fees) and Portfolio Transaction Costs (the costs of buying or selling assets for the fund).
The following are the main elements of the OCF:
Annual Management Charge (MC)
Registration Fee
Custody (Safekeeping) Fee
Custody Transaction fee
Audit Fee
Regulatory Fee
OCF example:
If you have £125,000 invested in a fund with an OCF of 1.5% - we will deduct £1,875 from your investment each year to cover these costs and charges.
Incidental Costs
There are further incidental annual charges and costs that are not part of the OCF, but will, should they arise, be paid out of the fund:
Portfolio Transaction Costs (PTC)
This includes the expenses that arise from selling or buying investments in the fund, including redemption fees, transfer fees and broker commissions. Costs for a property fund may be significantly higher than an equity or bond fund, due to the additional transaction costs associated with buying or selling a property.
Performance Fee
This is a payment made where a fund generates returns in excess of a set target. It is paid in addition to the annual management charge. If the fund does not meet this target, a performance fee will not be payable. There is no maximum fee.
Property Expense Ratio
There are a number of costs related to running and maintaining property funds that are not covered as part of the Ongoing Charges Figure (OCF). These additional costs are grouped together to form the Property Expense Ratio (PER).