6th Augusta Property Syndicate

[South]

Hi

The chap your thinking of is Declan Kennedy, he established the Forestry Funds many years ago, won a notable award for the concept at the time etc.

He's a very open guy, give him a call at Augusta & have a chat with him on his background, the info published in the marketing etc.

I'm suprissed this has not been mentioned already, but in addition to having a German national as a director to help with language issues etc the Augusta team source all their properties in conjunction with Colliers International (as in Colliers Jackson Stops fame) ....

Come on guys, read the info available here

Any vested interest to declare Garrettod, you don't happen to have Declan's phone number handy?

 

[F. Kruger]

Hi

I think a vital point to note with all syndicate investments is how they will be managed, proactively................

Cheers

I think that it might be more appropriate if they were up-front with their disclosure on how gearing effects the initial investment

 

[gonk]

I think that it might be more appropriate if they were up-front with their disclosure on how gearing effects the initial investment

As I pointed out in my earlier post, this is a normal effect of gearing any investment - it is not unique to the Augusta fund. Anyone who does not fully understand the effects of gearing an investment and in particular the extra risk it entails should stay well away from geared investments.

In my view, the Augusta product brochures provide very clear risk disclosure. The figures given above for the costs as a proportion of the initial investment come from their brochure. The brochure also contains a separate recommendation that prospective investors get independent advice relevant to their own particular circumstances. I don't know how much more up front they could reasonably be expected to be.

By the way, my only connection to Augusta is that I have invested in one of their earlier funds.

 

[Daithi7]

I've read the prospectus and it seems reasonably ok to me provided the underlying assumptions hold up of course. One issue I have is that they explicitly mention that german banks pay for the set-up of loans to management cos, but these will only be done on a hands off basis. These to me are blatant backhanders and there should be an undertaking that all such fees, rebates, etc are netted back into the fund. The setting up of finance, etc is after all what the syndicate pay .75% of the total fund value p.a. to a manager for.

Is the total fund value that the management charge is based on recalculated each year? and if so how is this done?

thanks
D

 

[GreatDane]

Any vested interest to declare Garrettod, you don't happen to have Declan's phone number handy?

Hi

Sorry guess we all have to answer this one (often, even before it's asked), vested interest or not these days

In answer to your question, Im not staff, living with Declan etc

I am a small investor in a couple of the Augusta Funds & have interacted with Declan on several occassions, he makes a point of being very hands on at Augusta from what I've seen and heard from friends who also invested. Happy to recommend him

It's easy to make contact with Declan or several of the others at Augusta, simply use any of the following methods:

tel: 00 353 1 2300 858

fax: 00 353 1 2300 868

e-mail: [email protected]


[broken link removed]


Regards

G>

 

[South]

Well with a name like Augusta they must be great fund managers, such an impressive golf course and all!!

 

[barryo]

Slagging for the sake of slagging - constructive - What are you selling then ?

 

[South]

Slagging for the sake of slagging - constructive - What are you selling then ?

Not selling anything just an actuary working in an insurance firm.

I tend to have reservations about firms that adopt grandiose names that are of little relevance, I am also wary of firms that dish out fancy brochures like they are confetti, that's just my opinion...certainly does not mean it's right!

 

[gonk]

I am also wary of firms that dish out fancy brochures like they are confetti, that's just my opinion...certainly does not mean it's right!

Putting a PDF up on a website is hardly dishing out brochures like confetti. Does your employer not do any marketing and does it not produce brochures for its products? If not, how does it stay in business?

After all, isn't the cliché among insurance salesmen that "insurance is never bought, it's sold"?

 

[barryo]

Take a read of said brochure and let us know what you think of the inside details.

 

[South]

Putting a PDF up on a website is hardly dishing out brochures like confetti. Does your employer not do any marketing and does it not produce brochures for its products? If not, how does it stay in business?

After all, isn't the cliché among insurance salesmen that "insurance is never bought, it's sold"?

I am not sure what my employer has to do with this, but we are a Reinsurance Company so we do not really have to look for customers, we compete on pricing.

I would be very wary of any investment that makes claims (as if they are assured) of double digit returns...I also think it might be a little bit late for jumping on the German Commercial Property bandwagon.

Caveat: it's only my opinion.

 

[gonk]

I am not sure what my employer has to do with this, but we are a Reinsurance Company so we do not really have to look for customers, we compete on pricing.

You said you'd be wary of Augusta for producing a brochure to market its product. You mentioned the business of your employer, and if it doesn't produce marketing brochures, then certainly the insurance companies to which it provides reinsurance services do. Are they at fault for doing so?

I would be very wary of any investment that makes claims (as if they are assured) of double digit returns....

God, you're wary of a lot of things aren't you? Maybe it goes with being an actuary and spending every day calculating risks . . . Augusta make no such claim.

If you read the brochure, they say returns of this level are possible and they provide full details of the assumptions they have made in producing their projected figures. Prospective investors can judge for themselves how realistic the assumptions are. They make very clear the projected returns are not "assured" and that in the worst case the entire investment could be lost. In my view, the brochure is not in any way misleading.

Well managed geared property funds could produce such levels of return. Two I've already invested in with Friends First are showing returns of 82% over 3 years and 30% in 11 months respectively. I'm only in the Augusta investment 8 months, so I can't say how it's doing so far.

I also think it might be a little bit late for jumping on the German Commercial Property bandwagon.....

You could be right - time will tell. But as Garretod points out above, there's a lot more to these types of investment than market conditions. If the properties are well chosen and actively managed to maximise returns, then above average returns are likely. The reverse is also true.

 

[GreatDane]

Hi

For the record, Im not underwritting this investment btw, I just believe it can do well ... so will probably try and rustle up the dosh to sign up for it

Cheers

G>

 

[South]

The closing date is last Friday...or were they unable to raise sufficient funds?

 

[barryo]

South, At least you read the closing date.. if not the prospectus

 

[South]

I read the prospectus, no original thinking in it, only point of note was that the closing date was last week.

 

[gonk]

I read the prospectus, no original thinking in it, only point of note was that the closing date was last week.

I didn't know originality of thinking was a prerequisite for achieving good investment returns.

However, having read the prospectus, are you now prepared to withdraw your false assertion that it:

makes claims (as if they are assured) of double digit returns.

 

[South]

Definitely not, having read their prospectus, and seeing this on their website:

Benefits to Investment

• €97,983 projected return on a €50,000 investment after 5 years
• Projected 14.7% p.a. Internal Rate of Return (IRR)
• Low management charge of 0.75% and low acquisition costs
• A focus on high yielding retail property
• Potential for significant capital appreciation
• Non-recourse borrowing

Projecting a return of 14.7% is a bit optimistic in my book!

I do not think one can earn base rates * 3.7 by following the herd into European Property.

That's just my opinion, maybe returns of 14.7% are easy to get these days.

 

[gonk]

Projecting a return of 14.7% is a bit optimistic in my book! .....

I do not think one can earn base rates * 3.7 by following the herd into European Property. ....

That's just my opinion, maybe returns of 14.7% are easy to get these days.

It may well be optimistic and you're fully entitled to your opinion.

However, your assertion that Augusta claimed their projected returns are "assured" is factually incorrect.

 

[South]

I said as if they are assured.

There is no justification for a company to show projected funds of €97K (based on €50k) and returns of 14.7% compound on their website, such marketing is dubious and should not be carried out unless such returns are almost assured.

Do you think they are almost assured?

If you do, get on it FAST.