Positive early performance for DPF1 listing on CISE
Tuesday, 29 Sep 2015
Nicholas Hofgren, Director, GFG Limited says he is pleased with the performance of the Dolphin Property Fund 1 (DPF1) fund since its launch earlier this year.
GFG Fund PCC Limited listed the Guernsey-domiciled Dolphin Property Fund 1 (DPF1) on the Channel Islands Securities Exchange (CISE) earlier this year. The Class B security, open-ended fund is aimed at mid to long-term investors with a minimum investment level of £10,000 for a minimum duration of five years.
DPF1 launched with the objective of investing directly in a diversified portfolio of global real estate assets across residential, retail, industrial and commercial sectors. DPF1 will also make indirect investments via equity securities, units in real estate investment trusts and other vehicles.
The fund aims to achieve a rate of return in excess of 8% per annum over rolling five-year periods.
"In late June we received a one-time dividend that represented a 15% increase in net asset value. Our principal listed share class that listed at the net asset value of €100 earlier this year is consistently trading above that," said Mr Hofgren.
DPF1 specifically seeks out opportunities with highly respected developers within the UK and Germany with a special preference for London and big cities in Germany such as Berlin and Leipzig. These sectors have strong economic environments and projects are sourced in areas where there is strong need, for instance, real estate projects are sourced within areas that have housing shortages and also represent strong areas for rental investments. For example, DPF1 has recently invested in a unique listed building project in Germany as this particular sector has a proven track record for investment returns. This reflects the manager’s preference to invest in real estate assets primarily located in Europe and North America.
DPF1 is a cell of GFG Fund PCC Limited, which is run by GFG Limited, an independent, owner-managed fund management company. Formed in 2014 by a team of experienced finance professionals, GFG is led by Nicholas Hofgren. The directors’ combined experience spans various financial industries including large institutions such as JP Morgan, UBS, Cantor Fitzgerald and Duet Asset Management. GFG’s independent status helps to ensure the directors can remain focused on the best possible outcomes for their investors. The team is able to develop strategies to generate absolute return for investors and its owner-managed structure means GFG is flexible enough to offer bespoke investment solutions to meet investors’ varying needs.
In addition to DPF1, GFG Limited has three other authorised funds: GFG FX Algorithmic Fund, advised by FxPro; Corellia Fund, a ‘rising star’ hedge fund strategy and GFG Raptor Fund, a multi-strategy fund targeting outperformance. These are all formed as cells of GFG Fund PCC Limited.
"Our strategy is to collaborate with established and performing managers with proven track records alongside new construction projects, within proven, profitable sub-markets with substantial stable demands. We take on equity positions in developer projects and gain returns from the high profitability of these," comments Mr Hofgren.
Fiona Le Poidevin, CEO of the CISE, added: "It was extremely pleasing to see DPF1 listing on the CISE. This is part of a very positive 2015 for the Exchange, with several other real estate related securities listing during the year, demonstrating the continued popularity of this asset class."
Collas Crill Corporate Finance Ltd sponsored the CISE listing, the fund administrator is Louvre Fund Services Ltd and the custodian bank is Deutsche Bank.