Apollo introduces a 5% M&G position into funds

Apollo Multi Asset Management has introduced a 5 per cent position in M&G Investments’ Property Portfolio fund into two of its funds.

The multi-asset boutique said it had started a 5 per cent position in both its Cautious and Balanced funds, which marked the first investment in property since 2011.

Ryan Hughes, fund manager at Apollo, said the holdings were mainly funded by cash reserves.

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“With the recovery in the UK economy becoming more deep rooted, we are seeing strong signs that UK commercial property is once again becoming an attractive asset class,” he said.

“The recovery is broadening out strongly from London into the South East and with a shortage of high quality supply, we see signs that this is being turned into rental growth which in turn is pushing up capital values.”

Mr Hughes said property had “great diversifying characteristics” and expected the position to “prove a very useful holding in our funds, particularly given the lack of value in other traditional stable asset classes such as fixed interest”.

“This exposure will complement our existing holdings well as we look to continue our track record of delivering ‘cash plus’ returns for our investors,” he added.