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  • FIRST POST
    lindabloo
    skandia life. brandeaux suspened
    • #1
    • 14th Jan 09, 11:44 AM
    skandia life. brandeaux suspened 14th Jan 09 at 11:44 AM
    I have 100k invested in this company. The money is invested in ground rents and produces about 8% interest a year and is based in the Isle of Mann. At the moment they have suspended their shares because one broker wanted all his clients to redeem their investment. This happened on 12th December and I still received my monthly interest and they said this was only a short term problem as they didnt want to have to sell their investments at very cheap prices and will sort the problem out as quickly as possible What do you think? My broker said it is absolutely safe.
Page 1
  • dunstonh
    • #2
    • 14th Jan 09, 2:07 PM
    • #2
    • 14th Jan 09, 2:07 PM
    The Skandia Life bit is irrelevent. They are just the provider of the wrapper and not the investment. You have an offshore bond that gives you virtually whole of market access to investments of all sorts.

    So, is that 100k in the wrapper is it that 100k in the brandeaux investment?

    Whatever it is, when you invest in property (either indirectly using funds or directly) it is not a liquid investment and delays can occur. Fund managers dealing in property can suspend dealing requests for up to 6 months typically. Quite a few already have and that is normal in a house price crash.
    I am a Financial Adviser. Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
  • whiteflag
    • #3
    • 14th Jan 09, 3:09 PM
    • #3
    • 14th Jan 09, 3:09 PM
    I have 100k invested in this company. The money is invested in ground rents and produces about 8% interest a year and is based in the Isle of Mann. At the moment they have suspended their shares because one broker wanted all his clients to redeem their investment. This happened on 12th December and I still received my monthly interest and they said this was only a short term problem as they didnt want to have to sell their investments at very cheap prices and will sort the problem out as quickly as possible What do you think? My broker said it is absolutely safe.
    Originally posted by lindabloo
    I would have thought this was an experienced investor fund, so you should be able to fully understand what your in, or your "broker" should not have arranged this for you
  • biffybear
    • #4
    • 20th Jan 09, 3:37 PM
    • #4
    • 20th Jan 09, 3:37 PM
    I have money invested in Brandeaux student accommodation fund through Friends Provident. Am a bit new to this game and would like your thoughts on the suspension. Does that mean that my money is in danger, should I take it out when the dealing starts again? Are the company just being cautious or has this fatally damaged the fund? Any comments would be welcome.
  • dunstonh
    • #5
    • 20th Jan 09, 5:05 PM
    • #5
    • 20th Jan 09, 5:05 PM
    have money invested in Brandeaux student accommodation fund through Friends Provident. Am a bit new to this game
    You are a bit new to this game but have gone into an experienced investor product? Talk about diving in at the deep end of a shark infested pool with a blindfold on and your hands tied behind your back.

    Does that mean that my money is in danger, should I take it out when the dealing starts again?
    You are in an illiquid risk based investment. You are now suffering the consequences of that.

    are the company just being cautious or has this fatally damaged the fund?
    They dont have the money to pay redemptions. Not unusual in bad times but your money is effectively tied up until they have the money.
    I am a Financial Adviser. Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
  • sabretoothtigger
    • #6
    • 20th Jan 09, 5:54 PM
    • #6
    • 20th Jan 09, 5:54 PM
    So long as they pay that 8% interest it doesnt sound too bad but I'd expect that return if fixed might actually be returning some of the original capital.

    Are things like this covered by the 100k life investment guarantee thing or is that something else
    Tokyo residential prices have gone from 4x London in 1990 to London in 2014
    There is no other agency of government which can overrule actions that we take
    by Greenspan, Federal Reserve
  • claretmatt
    • #7
    • 20th Jan 09, 9:17 PM
    • #7
    • 20th Jan 09, 9:17 PM
    I've found this which might help

    ================================================== ====


    UPDATE FROM KAY BRANDEAUX
    Dear Supporters, Brokers, and Advisers,
    As the founder and chairman of Brandeaux, I am writing to give you an update on our progress over the last few weeks and to give an outline of our plans for moving forward.
    The decision on 12th December to suspend dealing across all funds was a difficult but necessary one to protect all shareholders. I am acutely aware of the worry and concern this must have caused and that you are unnerved and disappointed by this action. I apologise to you all, and especially to those handful of people who wanted to redeem a small portion of their investment ahead of Christmas.
    I am overwhelmed with your supportive response and encouragement to get Brandeaux’s funds ‘back to normal’ and able to accept new money. Your loyalty and feedback is extremely important, and it is something I do not take for granted. I thank those of you who have given us your views and comments and have made important input into our plans for moving forward.
    The Brandeaux team are committed to putting in place a structure which will give stronger protection against a re-occurrence of the situation which occurred in December, when there was a sudden and high level of redemption requests which, had they been actioned, would have seriously damaged the liquidity of the funds and jeopardised their ability to continue to operate.
    We intend to offer a new share class with longer redemption terms more appropriate to the assets of the funds in the current turbulent financial markets. We believe that we are on course for a sensible and workable solution
    We will initially offer a new share class for Brandeaux Student Accommodation Fund, following through next with the dual asset funds, namely Brandeaux Sterling, US Dollar, and Euro Funds. The Ground Rent funds will follow as quickly as practical.
    Once the new share class is up and running, we will offer the existing investors the opportunity to switch into the new share class. In simple words, this should begin to ‘unlock’ the current situation.
    Our goal is to have the new share class for Brandeaux Student Accommodation Fund open for new subscriptions, hopefully within the next two to three weeks. We ask your patience as there is a vast amount of documentation and administrative detail to put in place.
    In spite of the painful experience this situation has brought about, we believe that we will, through the new share class, have a stronger and far more robust structure for the protection of all shareholders.
    There is no perfect solution. We are all only too aware that we are working in uncharted waters. The turbulence we all have experienced in the world financial markets over the past year is without parallel or precedent. Every well-run business must move with the times and adapt to changing conditions in order to be successful. This is what we are striving to do.
    On behalf of myself and all of the Brandeaux team, I say an enormous thank-you for your support, understanding, input, and patience while we work through this process. We are making good progress and will report again very shortly.
    My very best wishes for a happy and successful 2009.

    Kay Brandeaux
    Chairman
  • mishko
    • #8
    • 24th Jan 09, 11:07 AM
    • #8
    • 24th Jan 09, 11:07 AM
    Lindabloo and Biffybear, like you I have a part of my life savings invested in those Brandeaux funds. I have learned to take any advice I get from so-called Independent Financial Advisers with a large dose of salts! Especially as one of them got me into these funds.

    My advice for you (and for myself!) is "Do your own research and don't trust anyone." It's much easier these days with the internet.

    I did this today and came up with this interesting tidbit from Timesonline (Jan 18 2009):
    http://business.timesonline.co.uk/to...cle5536439.ece.
    "Kay Brandeaux and Roger Boyland - a British couple who made a fortune investing in student accommodation - broke the record for a villa in Cologny. They paid 45.6m Swiss francs for the hilltop pad that has views over Lake Geneva."

    Let's just hope and pray there is no connection between this purchase and the suuspension of their funds a few weeks before!
  • lupomen
    • #9
    • 29th Jan 09, 7:14 AM
    • #9
    • 29th Jan 09, 7:14 AM
    Can anyone hazard a guess about the implications of the letter from Kay Brandeaux regarding a new share class ? I am one of those people who have what for us is a large sum invested and add income to our retirement finances from the fund. Any best as to the direction this is taking ?

    Best wishes
  • sabretoothtigger
    Standard life has done something similar. I think they are implementing a queue system, you can leave as new people invest and money becomes available through normal sales
    Forced sales because of high redemptions would obviously damage value.

    I guess this new share system is similar, to separate short term holders and sellers from long term holders
    Last edited by sabretoothtigger; 29-01-2009 at 7:29 AM.
    Tokyo residential prices have gone from 4x London in 1990 to London in 2014
    There is no other agency of government which can overrule actions that we take
    by Greenspan, Federal Reserve
  • claretmatt
    Lindabloo and Biffybear, like you I have a part of my life savings invested in those Brandeaux funds. I have learned to take any advice I get from so-called Independent Financial Advisers with a large dose of salts! Especially as one of them got me into these funds.

    My advice for you (and for myself!) is "Do your own research and don't trust anyone." It's much easier these days with the internet.

    I did this today and came up with this interesting tidbit from Timesonline (Jan 18 2009):
    http://business.timesonline.co.uk/to...cle5536439.ece.
    "Kay Brandeaux and Roger Boyland - a British couple who made a fortune investing in student accommodation - broke the record for a villa in Cologny. They paid 45.6m Swiss francs for the hilltop pad that has views over Lake Geneva."

    Let's just hope and pray there is no connection between this purchase and the suuspension of their funds a few weeks before!
    Originally posted by mishko
    I think you are being a little harsh especially as the fund has showed continued growth during recent turbulant times with the annual return being still over 8%.

    Having spoken to Brandeaux my assumption is that the new share class will be launched with a specific period for redemptions (maybe 6 months) and the launch is to ensure that this or a similar situation does not happen again.

    Their move to suspend the fund was ultimately aimed at the investors including the above to avoid having to fire sell any of the assets, which would ultimately disadvantage the share holders.
  • elninopequeno
    I, like many, have my life savings in the Student Accomodation Fund.
    I, also like many, am not totally conversant with the financial markets, i.e. savings & investments.
    However, this particular investment was recommended (I wouldn't say 'vigorously', but certainly 'highly') by my IFA.
    I, like many, await further developments with guarded optimism, as, being a retiree & dependent on the income from this investment, the direction of our future depends on the outcome.
    elniopequeo
  • SuperMum2008
    All holders of the Brandeaux Student Accomodation Fund will now automatically be transferred to a new share class (as more than 75% of shareholders pro-actiely instructed the transfer of their shares, Brandeaux now have the ability to do this automatically with the remaining 25% of shareholders). The new share class is the same price as the old. There is a six month redemption period, but at least you can get your money out in 6 months time if you submit a written request.

    I second opinions above though that the fund continues to show positive returns, and after the recent turbulence, any fund that at least holds its own cannot be knocked.

    It's very easy to say nothing when funds are continuing to deliver, and then the moment there is a worldwide slump to blame your IFA! NO-one has a crystal ball, but you should not be invested in this fund at all unless you are an experienced investor and if it is a part of a much wider investment strategy. I would also question why you would put ALL your life savings in one fund? Surely a spread of risk, asset and time restrictions is far more sensible - not putting all your eggs in one basket? Might be worth seeking alternative advice, getting out some of your share of this fund and spreading elsewhere.
    Feel free to thank me, it makes my toes tingle and my ears go warm
  • ohbrandeaux
    It's now September, quickly approaching one year since they froze redemptions.

    When is this company going to offer redemptions again? I'm talking about the kind where people can actually get their money back, not a 'put in your request, and we'll see if we can do it in 6 months' type of redemption request.

    And doesn't it bother anyone that they keep trying to raise money for new funds while putting off all their redemption requests? If they had shareholders with muscle (institutional money), they would have been forced to shut down months ago.

    Something's fishy here...
  • sabretoothtigger
    They are raising more funds so that more people can cash out I guess but apart from that it makes more sense to buy with lower property prices then it was a couple years ago.

    The request thing is a queue system sounds like. Property is not a very liquid investment, thats been a problem for speculators regardless of the company
    Tokyo residential prices have gone from 4x London in 1990 to London in 2014
    There is no other agency of government which can overrule actions that we take
    by Greenspan, Federal Reserve
  • ohbrandeaux
    They are raising more funds so that more people can cash out I guess
    Originally posted by sabretoothtigger
    Isn't this exactly how Madoff ran his fund?
  • sabretoothtigger
    And the government debt also, they pay the interest off by selling more debt. If he had gone into government he'd have been promoted several times by now, great idea but wrong place
    Tokyo residential prices have gone from 4x London in 1990 to London in 2014
    There is no other agency of government which can overrule actions that we take
    by Greenspan, Federal Reserve
  • Magooorobino
    You are a bit new to this game but have gone into an experienced investor product? Talk about diving in at the deep end of a shark infested pool with a blindfold on and your hands tied behind your back.



    You are in an illiquid risk based investment. You are now suffering the consequences of that.



    They dont have the money to pay redemptions. Not unusual in bad times but your money is effectively tied up until they have the money.
    Originally posted by dunstonh
    I was Miss Kay Brandeaux and Mr Roger Boyland's Butler In Barbados last year when they rented 'Greensleeves Barbados' (google for a look) from 30th July until 30th November. The published off-season rental for this 3 acre spralling vila with 25 staff is $10,000 per NIGHT!!
  • Magooorobino
    There is also La Colline, the old Chagall House in St Paul de Vence lovingly restored for six years, the Jacobean Shenton Hall in Shenton in the midlands, the West Coast spralling Barbados Villa..Lazybones at Cobblers Cove, the Guest Penthouse and two Guest Appartments at Port St Charles and the maisonette in Cadogan Square etc! Miss Brandeaux describes herself as a Rental Tenent and lives in Tax Exile in Geneva and employs her Domestic Staff using a Jersey Registered Company so that they have no protection from the UK Employment Law. rest assured your money is safe!
  • Magooorobino2
    I should also add; LA COLLINE IS WORTH IN ACCESS OF 20+ MILLION EUROS AT A CONSERVATIVE ESTIMATE. SHENTON HALL LOCATED IN ITS OWN PARKLANDS WITH LAKE IS WORTH IN ACCESS OF 20+ MILLIONS . THE STAFFING BILL RUNS TO 250,000 PA PAID THROUGH CHANCERY SAINT JAMES PLC IN LONDON ALTHOUGH THE HOUSE IS OWNED BY SHENTON PROPERTIES LIMITED (JERSEY) WITH THE MAIN SHAREHOLDER WESTMINSTER INVESTMENTS A BRITISH VIRGIN ISLAND COMPANY WHO ALSO BOOK AND PAY THE PRIVATE JET TRAVEL LIFESTYLE OF MR BOYLAND AND MISS BRANDEAUX. THE BARBADOS HOUSE IS ALSO OWNED BY A BVI COMPANY AND MUST BE WORTH $50 MILLION PLUS! THE GUEST PENTHOUSE AND FLATS ANOTHER COOL $10 MILLION AND LAST BUT BY NO MEANS LEAST CADOGAN SQUARE IS ABOUT 5 MILLION, not forgetting BELLE FONTAIN IN GENEVA WHICH NEWSPAPER REPORTS SAY COST 26 MILLION! ALL OWNED BY YOU WITH MISS BRANDEAUX AND MR BOYLAND LIVING FREE AS TENANTS.
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