Blu Family Office  |  16 Water Lane  |  Richmond  |  Greater London  |  TW9 1TJ  |  United Kingdom  |  T: +44 (0)208 166 1223  |  E: info@blu-fo.com

Blu Family Office Limited is authorised and regulated by the Financial Conduct Authority.

Terms of Use  |  Conflicts of Interest  |  Stewardship Code  |  Privacy Policy

© 2019 Blu Family Office Ltd. All Rights Reserved

How Can You Invest to Fund Ever Rising Private School Fees?

 

Private school fees are up 70% since 2004, almost three times higher than the consumer price index during the same period, and average annual tuition fees are close to £15,000 per year.  These numbers are challenging enough, but are made even more difficult in a world of historically low interest rates.

 

With banks and gilts (and foreign bonds) no longer able to provide safe, low risk planning for the rising cost of tuition, the only option to make up the missing yield is to take on more risk.  This usually entails either taking on riskier credit or owning risky assets such as equities or alternatives. However, this comes with a caveat, that capital can also be lost!

 

When investing our own monies, neither of these options sounded very appealing and thus we looked for different sources of yield but without taking much capital risk – we wanted classical fixed income. We discovered that the private lending markets provide the additional yield needed.  We rely on the same caveats as any credit manager would when they assess whether someone can actually repay a loan, and we always take 100% collateral to ensure security.  Ultimately, we use the growing market of commercially standardised and institutional lending where the banks are no longer active.

 

We have structured The Blu Income Fund for our families and clients, providing steady cash flows needed to match any future liabilities, such as rising school tuition fees.

 

Click here to view The Blu Income Fund Fact Sheet

Share on Facebook
Share on Twitter
Share on LinkedIn
Please reload

Recent Posts

11 Nov 2019

28 Oct 2019

21 Oct 2019

14 Oct 2019

Please reload

Search By Categories
Please reload

Follow Us