Guernsey-based Argyll Investment Services has launched three unit trusts and a closed-ended property...
Guernsey-based Argyll Investment Services has launched three unit trusts and a closed-ended property company. The company has previously focused on discretionary managed portfolios for private clients and offshore trusts.
The closed-ended Montenegro Investments has been launched to take advantage of what Stuart Place, managing director of Argyll Investment Services, described as one of the least exploited property markets in Europe. The fund is to be managed by Mark Holden and Chris Kemsley, who both have experience of managing property portfolios, including in Montenegro.
Among the reasons why Place believes Montenegro offers an attractive investment opportunity are the fact that tourism is expected to grow by 10% annually between 2005 and 2014, the country's currency has been the euro since 1999, property prices are a "fraction" of the cost in Croatia and and "there is no war damage from the Balkans conflict".
Place added: "It is an opportunity to enter an emerging market at an early stage and Montenegro is an undiscovered and unspoilt destination. It is line for European Union accession and could develop into an upmarket destination for tourists. There is a better land registry in Montenegro than in many other countries in Europe."
Given these factors, Place admitted there is a potentially limited life to the fund. Place said: "After five years, the company will return capital to investors over a six to 24- month period. At the fourth anniversary, shareholders will have the option to continue to invest after five years for a further closed period."
The three unit trusts launched by Argyll Investment Services are Clarion Sterling Balanced, Clarion Sterling Absolute Return and Clarion Dollar Absolute Return funds. They can be hedged, hold cash and using gearing.
These unit trusts will invest in seven managed sub-funds run by Argyll Investment Services with different weightings. The managed sub-funds include Clarion Sterling Equity Aggressive, Clarion Sterling Fixed Interest Moderate, Clarion Sterling Alternative Defensive, Clarion Sterling Alternative Opportunistic, Clarion Dollar Alternative Defensive and Clarion Dollar Alternative Opportunistic.
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