Guernsey home to second largest investment trust launch of 2015

17 July 2015

The successful listing of UK Mortgages Limited on the Specialist Fund Market of the London Stock Exchange (LSE) makes it the second largest investment trust to launch in 2015.

The closed-ended fund, which was oversubscribed upon its admission earlier this month, is targeting an annual return of between seven and 10% with an annual dividend of 3p per share and raised £250 million from investors.

The fund will invest in a diversified portfolio of existing UK residential mortgage portfolios that have demonstrated strong performance histories as well as in new portfolios. 

Carey Olsen's investment funds practice in Guernsey advised bond fund house TwentyFour Asset Management on the launch of UK Mortgages Limited. 

Corporate Partner Ben Morgan led the Carey Olsen team which provided Guernsey legal advice on the offer, fund incorporation and launch within a two-month timeframe, assisted by Senior Associate Emma Penney.

Mr Morgan said: "It was a privilege to work closely with the team from TwentyFour on such a significant investment fund launch which is the first of its kind.

"The selection of Guernsey as a domicile is testament to our strong reputation for LSE listed funds. Of the 16 LSE IPOs so far this year, eight have been Guernsey companies."

Mark Holman, the head of TwentyFour, said: "UK Mortgages provides an opportunity to access an attractive yield supported by a historically robust asset class. The income potential and historically low correlation to other asset classes has clearly appealed to investors."

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