Independent Report Supports SyndicateRoom Fund Twenty8 Investment Portfolio Approach

XPM Investment Consulting, an independent consultancy that provides fund analysis, portfolio reviews, investment research and more, has published a brief report on SyndicateRoom’s Fund Twenty8. SyndicateRoom says the report was not published at their behest and represents an independent assessment of the fund.

Fund Twenty8 is an investment vehicle that provides a high degree of diversification into early stage UK companies. As we all know, diversification is key in consistently driving solid risk adjusted returns.  Historically, investing in early stage companies is exceptionally risky as many companies fail, but the few that are successful can drive outsized returns for the investor. Thus, backing younger companies can drive wealth for the investor.

According to the report by XPM, they approve of Fund Twenty8. To quote;

We support the fund being held as part of an EIS strategy within a client portfolio where the client has a commensurate high risk profile.

  • The underlying fund holdings are high risk being early stage companies. This is in line with HMRC intentions for EIS tax relief.
  • The fund management process appears robust. Most importantly, the fund has a high degree of diversification relative to other EIS portfolio solutions, having around 32 holdings currently.
  • As the fund is likely to always be a minority investor in the company, it may have less influence over company strategy than could be the case at other EIS funds but appropriate legal measures are in place to ensure investors’ interests are protected in the instance of corporate activity.
  • Fees are very competitive relative to other EIS portfolio solutions.

In reviewing overall returns of Fund Twenty8, XPM says that in “July 2016, shares in the companies that raised funds in 2014 and 2015 were valued at 135% of the original subscriptions. The hypothetical value of the platform portfolio as of the start of 2017 was found to be worth 114% of subscriptions.”

So solid returns and lower fees than usually seen from similar type venture funds.

If you are interested in adding early stage firms to your overall portfolio strategy you may want to review the SyndicateRoom fund option.

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