Key Information

Fund Structure

The Mayfair Capital Property Growth Fund No.2 Income plus fund is a Guernsey domiciled open ended investment company (OEIC) launched in 2008

Unit Dealing & Pricing

The Fund is priced quarterly based on the Net Asset Value and dealing is available on the subscription days as laid out in the Investment Memorandum. Redemptions are also available on a quarterly basis.

Distributions

The Company is presently a “distributing fund” for UK tax purposes and as such intends to distribute 85% of the net surplus income after all interest charges, amortisation costs and fees in respect of each accounting period. The distributions are likely to be very small however because the Company is aimed at providing capital growth and little income.

Minimum Investment

The minimum investment in the Fund is £100,000 and multiples of £10,000 thereafter.

Fund Charges

It is not expected that the total expense ratio (TER) for the Company will exceed 1.5% of the Gross Asset Value of the properties and investments held by the Company (except whilst the company grows its assets towards £25m) . The TER covers all annually recurring investment management fees, custodial fees, administration, directors’ fees, audit fees, independent valuation fees and other Company costs but will not include interest on any loans.

Property Valuations

The Company has appointed GVA as the valuer of the Direct Property Assets of the Company to provide an independent valuation of each property to be acquired by the Company, prior to purchase and on a quarterly basis.

Tax Status of the Fund

The Company is an offshore fund, intended to be administered as a ‘distributing fund’. Any net surplus income will be subject to UK income tax in the hands of the individual on distribution.

As a Guernsey Company, the Company will be subject to 0% rate Guernsey corporation tax under the exemption granted by the Guernsey tax authority. The Company will be subject to UK income tax on rental income after deducting allowable costs and expenses.

Investors resident in the UK will be liable to UK tax on capital gains realised on disposal of their shares assuming that ‘distributing fund’ status is certified by HM Revenue and Customs for each period.

Borrowing Policy in the Fund

Where there is an opportunity to enhance returns the Fund has the power to borrow up to 75% of the Gross Asset Value of the company. The Board has currently placed a 50% limit on borrowings. The Fund will not employ its borrowing powers to acquire any indirect investments.

Investors should read the Information Memorandum for further explanation of the key information on the Fund, this is available for qualifying investors from Mayfair Capital Investment Management.