Brooks Macdonald Funds has set up a new firm called North Row Capital to support the launch of a Ucits-compliant property fund.
The IFSL North Row Liquid Property Fund will aim to offer investors liquid exposure to the global real estate markets by investing mainly in property derivatives, as well as property equity and debt, to gain exposure to direct property markets.
It will be managed by Steven Grahame, former CIO of Hermes Real Estate Alternatives, who will be supported by deputy manager Dr Niall O’Connor.
The fund will aim to deliver a high correlation to direct property markets, targeting a yield of 4.5%-5.5% with low volatility.
The retail fund carries an 85 basis point (bps) charge for retail investors, and has an anticipated total expense ratio of 131bps. While the fund will be launched at the end of January for retail investors with a minumum investment of £10,000, it is already accessible to institutional investors with a minimum investment of £1 million.
Grahame said: 'Today’s improving economy provides a positive outlook for property, which we believe should be at the top of investors’ wish lists for 2014 – given its ability to provide income and compelling relative value.'
The retail fund carries an 85 basis point (bps) charge for retail investors, and has an anticipated total expense ratio of 131bps.
CEO Simon Wombwell, said: 'The IFSL North Row Liquid Property Fund is a unique and innovative concept which we are excited to be bringing to investors. It is the first UCITS property fund of its kind, and offers a unique opportunity to invest in property through assets with daily liquidity, rather than slower-moving bricks and mortar.'