For more details or if you would like a meeting in your area contact Bill Ridge on 07887911662

NEE: How has Sweden’s participation in the Irish bailout affected the mood in financial circles? Do you expect it will have any impact on investor concern in the long run? Not as a stand alone activity. A more widespread crisis including more countries that need bailout will of course have an impact on investors. On the other hand Sweden is the country in Europe that has survived the financial crisis best with a very high GNP increase and a reasonably low unemployment rate.

Sweden’s economy is experiencing moderate growth, prompting talk of raising interest rates. How do you envisage this development will be seen by investors? Sweden’s economy his experiencing a very high growth (the figure for GNP in November was over 6%!). The basic fundamentals in Swedish economy are very sound. This together with a well educated work force, a very good infrastructure and low administrative burden and competitive tax regulations for companies should attract investors. At the same time Sweden, as a small exporting country with many global companies with operations around world, is affected by higher interest rates and a more widespread financial crisis in the financial system in Europe. But such a development will also hit other countries and Sweden’s current situation is stronger than most other countries. Thus Sweden should continue to be an interesting market for investment despite the international developments.

Britain’s Prime Minister, David Cameron, is to host a New Year summit with leaders of Nordic and Baltic countries in London. It’s being trailed as an opportunity to exchange ideas on issues such as the green economy, social cohesion and gender equality. Are these traits real, are they exportable, and how can investors benefit from the summit?

Sweden is probably one of the leading countries in all the above mentioned areas. Sweden has one of the “greenest” economies in the world both when it comes to handling pollution and the climate issues. Social cohesion and gender equality is also areas that have been in focus in Sweden for many years and Sweden is one of the more developed countries in that respect.

“For liquid bio fuels, the current possibilities of tax exemptions have contributed to large investments in production capacity. In this area there are also great opportunities for grant funding.”

The social cohesion quality is something that is really on the table in virtually all countries due to the financial crisis and huge deficits in many countries. The fact that we see globalisation effecting the way we work, communicate and do business, implies that also questions of social cohesion quality will be an important area for countries to attract a skilled workforce. Thus we will probably see that companies will tend to invest in this area in a more consistent way taking into account what other countries do, i.e. will see a more consistent social welfare system – at least in Europe. The summit will in that respect be an important event were different systems and ideas can be discussed and be brought up to light.

As the leading business adviser we see that manage talents is one of the most important future issues for the business community. This together with an increasing mobility of the workforce between countries implies that the gender issue needs to be managed. Many countries, companies and other organisations have already understood that keeping half of the population out from the labour market is extremely contra productive. An education and welfare systems that support women to educate and to be able to combine family and work in order to make it possible for women to take active part in the shaping of future businesses is vital for most developed countries. The question is not if this is exportable. Developments in this area will with certainty take place, it is only a timing issue. With this as a background investors should be able to benefit from the meeting just by it bringing this area up for discussion and thus put a focus on this very important issue. Sweden is a global centre for green energy. What incentives are available for investors wanting to take advantage of opportunities in this sector?

The electricity certificate system provides incentives for investment in bioelectricity. For example it has created benefits for investment in wind power, also many paper mills have invested in power generation facilities. The system has also led to significant investment by local energy companies in combined heat and power plants. The electricity certificate system is planned to be extended to also include the Norwegian electricity market.

From 2011 there will however be some restrictions on the right to tax reductions on low mix bio fuels. Investments in biogas – mainly for vehicle use – have more recently picked up speed. Probably because higher environmental requirements on landfills, but also because of changes in the tax regulations making it possible transport the biogas in pipelines together with natural gas . Biogas is at current tax exempt.

Taken from New European Economy

The Swedish economy is in an upward spiral where rising demand leads to increased output and higher employment, which in turn give demand a further boost. GDP will increase this year at the high rate of 5.6 percent. Although growth will fall off considerably in the period ahead, it will still be strong in the next two years at 3.8 percent in 2011 and 2.9 percent in 2012.

Employment to increase by 110 000 persons 2011–2012

The positive tendency of the labour market is expected to continue. In total, the number employed will be 2.5 percent higher in 2012 than in 2010, equivalent to about 110 000 persons. The largest increases will be in the construction and service industries. In manufacturing and the general government sector, the number employed will not change appreciably in 2011 and 2012 compared to 2010.

Even though the labour market is improving and the number employed is rising, unemployment will recede rather slowly and will still be 7.5 percent at the close of 2012. That is above the unemployment rate that the NIER considers compatible with cyclical balance on the labour market. A lower rate of increase in earnings, higher growth in productivity and a stronger krona will mean that inflation as measured by the CPIF will be less than the inflation target in 2011–2012. But to prevent resource utilization and inflation from rising too much in the next few years, the Riksbank has begun to move toward a less expansionary stance in monetary policy. The repo rate is expected to rise to 2.75 percent by the end of 2012.

Need to stimulate demand greatest in the near future

The Budget Bill for 2011 provides for unfunded measures amounting to roughly SEK 13 billion. In the NIER’s opinion, Sweden’s comparatively robust general government finances leave a margin of SEK 25 billion for further unfunded measures. The need to stimulate demand will be greatest in the near future, when resource utilization in the economy is low. This warrants making use of the existing margin for unfunded measures in 2011 and 2012.

The Scandinavian country’s economy, which is expected to end the year as Europe’s strongest, swelled by a much better-thanexpected 2.1 percent compared to the previous three-month period, and year-on-year the growth was even steeper, at 6.9 percent, Statistics Sweden said.

The latter is the highest gross domestic product growth rate since the statistics agency began its quarterly measurements in 1970, and “is most probably the highest since 1950,” Peter Buven, an analyst with the statistics agency, told the TT news agency.

Swedish Prime Minister Fredrik Reinfeldt hailed the growth figures, which he described to TT as “very strong in an environment where many others in Europe have deep problems.”

However, he stressed the necessity of showing “humility, since Sweden is very exposed by its dependance on exports to the world around us, which is seeing a completely different kind of development.”

In light of the current Irish banking catastrophe and deepening concern about other eurozone economies, “it is difficult to estimate how long (this strong growth) will last,” he acknowledged.

Meanwhile, Buven pointed out that the strong GDP growth figures announced Monday were “of course due to the deep drop we experienced last year.”

In 2009, Sweden saw its economy shrink a full 5.3 percent, but according to Mats Dillen, the head of Sweden’s National Institute of Economic Research (NIER), the country’s GDP is now back at its pre-crisis 2008 level.

“The financial crisis is looking even deeper now than we thought before. That means things are looking even better this year, as we emerge from a negative situation and see a powerful boost upwards,” he told the TT news agency.

A few months ago, NIER forecast that Sweden would register 4.3 percent growth this year and 3.4 percent in 2011, but after seeing Monday’s statistics, Dillen said “for the current year, we will probably have to significantly revise up the expected growth.”

“We will probably see growth above five percent this year,” he said, adding that he would not yet make any new estimates for next year, since “we also need to take into consideration the international development.”

The Swedish growth figures, which already soundly beat analyst expectations in the second quarter, were again far better than expected in the July-to-September period.

According to a poll by the Dow Jones Newswires, analysts had anticipated a 1.3-percent hike compared to the second quarter.

and an increase of 5.6 percent compared to the third quarter of 2009.

Statistics Sweden meanwhile slightly revised down the growth numbers for the the April-to-June period, showing that Sweden’s GDP grew 4.5 percent year-on-year. Quarter-on-quarter, the number remained at 1.9 percent.

Contributing to the strong third-quarter growth, according to the statistics agency, was a 3.5-percent increase in household consumption expenditures and a 1.8-percent jump in government consumption expenditures.

Changes in inventories meanwhile alone contributed to 2.9-percent of the GDP increase, Statistics Sweden said. Sweden, which emerged from recession in the second quarter of 2009 and saw growth quickly pick up in the first quarter of 2010, now has one of Europe’s strongest growth rates.

Like Reinfeldt, Finance Minister Anders Borg, who has been largely credited with the Scandinavian country’s dramatic turnaround, also cautioned Monday against allowing the strong growth figures to lead to “hubris.”

“We must remember that when countries explode, as we have seen in Iceland and Ireland, this has usually been preceded by extreme confidence. Things have looked good and one has been afflicted by hubris. But we will not let that happen to us,” he told reporters in Stockholm.

“It is extremely important that we keep our public finances in order,” he added.

Taken from The Local - See online here .

Evanridge Properties was founded by Pembrokeshire milk producers, Nigel Evans and Bill Ridge, along with former tax inspector Huw Evans, in 2005.

Its first two funds have achieved annual growth rates of 15% for investors – generated from rental income from its Swedish portfolio of properties.

The capital growth funds raised £5m and £3m respectively, with half the investors high net worth individuals based in Wales. The proceeds of the funds will be reimbursed to investors after seven years.

Evanridge is now looking to raise £5m of equity funding for a third fund, for which it has agreement to leverage further finance of £15m with Swedish bank Handelsbanken. The £20m would be used to acquire further property interests in Sweden.

And the fund has scope to increase equity funding to £10m, which would take total funding to £40m.

Evanridge, which oversees its own fundraising activities, is looking for minimum investments of £50,000.

The firm’s current portfolio in Sweden extends to 185 homes with ownership of a number of industrial properties as well.

In contrast to a floundering UK property market, Evanridge has driven positive year-on-year returns for investors in its first two funds.

Mr Ridge of Vaynor Farm near Narberth said: “Property prices in Sweden haven’t experienced the same turbulence as the UK housing market. Prices have remained firm and we are confident that there is more opportunity.”

Evanridge has invested in fully- let apartment blocks in commuter towns in south-western Sweden. Only 40% of the population are homeowners in Sweden and it is the only country in Europe where rents are regulated.

However, deregulation is now on the political agenda.

Mr Evans, who runs Spittal Cross Farm near Haverfordwest, said this would have positive repercussions for property values.

He added: “If the rental market is deregulated, rents will increase.”

The success of Evanridge has taken the partners away from the day-to-day running of their farms, but stress the skills they have gained in the agricultural sector have been invaluable.

Mr Evans said: “There is a misconception that farming isn’t like any othe rbusiness, but that just isn’t the case.

“The skills needed to run a farm business are no different to any other. Farming involves property and financial management, so for us Evanridge is just an extension of this.”

The partners, who have been joined by former farm business consultant and MBA graduate, Bryony Fitzgerald, had formed a property syndicate before launching the business.

Evanridge’s existing investors range from farmers to city professionals, with many seeing its potential for capital growth benefiting their retirement or succession planning strategies.

A third fund is being created because existing clients want to increase their capital commitment and also have family and friends who wanted to invest.

Evanridge is hosting a series of meetings for anyone interested in hearing about its existing activities and possible future opportunities for investment. The first presentation will take place at Plas Hyfryd, Narberth, on November 4.

Perspective has just launched a regulated property investment fund called EPH Sverige which it said offers investors a steady income and is suitable for Sipp and SSAS investments.

EPH Sverige has a minimum investment level of £10,000 and is looking to provide investors with geared net returns of at least 12% over five years and 14% over seven years, with net yields ranging from 5% to 8%. The fund will focus on pre-let residential property with some elements of commercial property.

Paul Hogarth, co-founder of EPH Partners who act as property advisers to the fund, said: “The fundamentals of the Swedish property market should provide an attractive rate of return for investors. Capital values in southwest Sweden are low, often less than the price of the land and build cost which restricts residential development in southwest Sweden meaning there is no over-supply of property. Also, as a result of state-controlled rent reviews, inflation-linked rental growth is guaranteed.

“Given the current turmoil and volatility of equities at present, the dire state of the UK property market and the general lack of exciting opportunities for investors, EPH Sverige offers a particularly attractive investment and risk/reward ratio.”

EPH Sverige plc, a closed-ended trust from EPH Partners, plans to target between 20 and 200 opportunities offering expected yields of between 5% and 8%. The portfolio may also contain commercial property.

The founders of EPH Partners are Paul Hogarth, who launched both Bankhall Investment Management and IFA support services firm Paradigm Partners, along with PH Property Holdings’ Philip Hughes, Nigel Evans, Bill Ridge and Huw Evans of property fund specialists Evanridge.

Up to 30 million participating shares are being offered in EPH Sverige at a subscription price of £1 per share. The target aggregate subscription amount for EPH Sverige is £25m before expenses and it has an expected closing date of 31 March 2009.

Hogarth says: “Over 60% of the Swedish population live in rented or co-operatively owned accommodation and rental demand for residential apartments consistently exceeds supply in our target areas – the commuter towns surrounding Stockholm and Gothenburg.

“As a result of State-controlled rent reviews, inflation-linked rental growth is guaranteed.”

Hogarth adds EPH Sverige will use hedging instruments to limit the risk of movements in exchange rates.

“Given the current turmoil and volatility of equities, coupled with the dire state of the UK property market, EPH Sverige offers a particularly attractive investment and risk/reward ratio,” he says.

EPH Sverige anticipates a five to seven-year term, with a maximum life of 10 years.

Minimum investment is £10k, with multiples of £1k thereafter. The investment is also suitable for both Sipp and Sass clients. IFA commission is up to 6%, with additional trail of 0.75% of equity invested.

EPH Partners said Sweden was well placed to provide a “fertile investment ground” for investors, as the country was ranked as Europe’s fourth-largest real estate investment market in 2007, with more than £11bn in real estate transactions.

The managers also said the strength of Swedish financial institutions, combined with sound investment fundamentals in the property market, should keep the area safe from any fallout of the global slowdown.

The managers aim to raise as much as £30m, with participating shares being offered at a subscription price of £1 per share. The anticipated term for EPH Sverige is 5-7 years, with a maximum life span of 10 years. The target aggregate subscription amount for EPH Sverige is £25m before expenses, with an expected closing date of March 31 2009.

The fund has a minimum investment of £10,000, with multiples of £1,000 thereafter. IFAs can earn as much as 6 per cent commission, with an additional trail commission of 0.75 per cent of equity invested.

Paul Hogarth, co-founder of EPH Partners, said: “The fundamentals of the Swedish property market should provide investors with an attractive rate of return. More than 60 per cent of the population live in rented or co-operatively owned accommodation, and rental demand for residential apartments consistently exceeds supply in our target areas, the commuter towns surrounding Stockholm and Gothenburg.”

He added: “Capital values in south-west Sweden are low, often less than the price of land and build cost combined, restricting residential development in the region, which creates a barrier to oversupply.

It will be the second fund launched by Evanridge, a team that consists of two farmers and a former accountant.

For the first fund – the Evanridge Swedish Property LLP, an unregulated collective investment scheme – the team invited farmers to invest in the Swedish property market in the form of an unregulated collective investment scheme.

The team bought a mixed portfolio of commercial and residential property in January and have also found their next purchase, which they are soon to complete.

Huw Evans, finance director of Evanridge Properties, said there were already similar farming-based property funds based in Ireland, but not in the UK.

The new fund, which Evanridge is hoping to launch in September, is aimed at the Sipp market.

It will invest in residential and commercial property. Mr Evans said that by investing in property in Sweden, Evanridge could avoid the “very restricted range of residential investments” available to Sipps in the UK.