Bullish Yousefian predicts strong three years for property

Multi-manager Tony Yousefian has claimed he is the most bullish he has ever been about property and predicted another three years of strong returns.

Mr Yousefian recently joined Charteris Treasury Portfolio Managers as part of a drive by the company to beef-up its fund market presence.

The manager joined from City Financial and brought with him his multi-manager £10m EFA OPM Property fund. The group is set to launch the Elite Charteris Strategic Gilt fund for Mr Yousefian and Mr Williams to co-manage.

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“I must say that I have never been as bullish about property and my confidence has been growing since early 2013,” he said. “I feel that we have at least another three years of solid returns left in this asset class and so feel this is a very good opportunity for IFAs to overweight this sector in client portfolios and obtain a decent total return with lower volatility than equities.”

Mr Yousefian added though it would be important for investors to move with the cycle and correctly mix their exposure to bricks and mortar investments – which tend to be less volatile – and more punchy listed property investments.

The manager said he tended to run his portfolio with 30 per cent in three sectors – direct real estate investment trusts (Reits), bricks and mortar funds and Reits which act like funds. He then has the remaining 10 per cent split between alternative assets, fixed interest and cash.

Mr Yousefian said he had recently been reducing his exposure to the UK – presently at nearly 58.2 per cent – and increasing his weighting in Europe which only makes up 8.5 per cent of the portfolio, according to the fund’s factsheet.

The manager said his aim for the fund was to be in the second quartile of the IMA Property sector as this would mean he was balancing the defensiveness of bricks and mortar exposure with the higher risk listed exposure.