An income producing asset class with the potential to pay up to nine per cent a year has been presented in the UK. The Secured Life Fund, designed for large pension fund and institutional investors, is constructed to produce regular cash flows without the volatility of stock markets or other traditional benchmarks. Investors into the fund will be able to choose from either a five, seven or ten year investment period, each of which will provide fixed returns paid annually in arrears. Returns range from eight per cent for the five year bond, 8.5 per cent over seven years, rising to nine per cent for the ten year bond.

Skandia Investment Group has nominated two UK sales managers – one for south and the other for the north – and has increased its sales presence in Germany, the Nordics and South East Asia. SIG has hired Martin Canavan as sales manager to drive the sale of SIG funds through advisers in the north of England, Scotland and Northern Ireland.

The UK is still Europe’s most active market for real estate private equity funds, according to research by Swisslake Capital.  In 2009 more funds were launched in the UK than in all other regions in Europe put together. Real estate private equity fund managers continue to believe that the UK, and particularly London, will witness further yield compression and produce returns above average.

Auriel Capital, an asset management firm specialising in absolute return strategies, is inaugurating a market neutral fund called Auriel UK Equity Fund. The new hedge fund comprehends both long and short investments in FTSE 100 companies.

Aegon Asset Management is opening a UK Equity Absolute Return Fund which intends to cash in on the group’s UK equity investment process. The fund aims to give the investors absolute returns regardless of the direction of UK stocks.