F&C launches long/short real estate securities fund

F&C Investments has launched a global real estate securities fund to be co-managed by Alban Lhonneur and Marcus Phayre-Mudge.

The F&C Global Real Estate Securities fund will copy the regional exposure of its benchmark, the FTSE EPRA/NAREIT Developed Global index, which includes 50 per cent in the US and 15 per cent in Europe.

The managers said they would look to generate greater returns than the index through stock selection within the regional exposure, though F&C said the fund would simply track the benchmark when it comes to exposure to Asia excluding Australia.

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The Ucits-compliant, UK-domiciled fund will have the ability to ‘short’ stocks, which generates returns if a stock falls in value, with a net exposure (long positions minus short positions) on the fund of between 60 per cent and 140 per cent.

Mr Lhonneur and Mr Phayre-Mudge also run the £39.4m F&C Real Estate Securities fund, which invests mainly across Europe.

The fund will sit in the existing range run by the team which includes the TR Property Investment Trust managed by the team since 1996 and the F&C Property Growth & Income fund.

The new fund will have an ongoing charge of 0.85 per cent and is available on most major platforms.