Blue Gate Capital, a Manchester-based investment management firm and fund operator, is launching its second fund – The Blue Gate Secured Income Series 2 Fund.

In November 2009 Blue Gate Capital launched the Blue Gate Capital Secured Income Fund, which is now closed to new investors. 

The Series 2 Fund provides investors with an opportunity to invest in a high yielding income fund secured against property assets and designed to take advantage of current market conditions within the banking sector.

Income is paid quarterly in arrears at fixed rates of six per cent in year one, seven per cent in year two and eight per cent from year three onwards.

Tamlyn Stone (pictured left), a director of Blue Gate Capital, says: “The fund has been designed to meet the income needs of investors in today’s market. The fund, which is open ended, is aimed at medium term investors and provides increasing income returns during the first three years. The fund has stepped interest rates, a short redemption period and provides capital protection as the investments of the fund are protected by first legal charge securities over property assets.”

The fund will be open ended and investors will be able to redeem after an initial five months with one month’s notice 

Blue Gate Capital recently moved to larger premises to cope with the growth of its business. The firm is currently acting as operator of investment funds totalling in excess of GBP100m.