Multi-manager  

Architas invests in F&C property trust

Architas has boosted its exposure to property within its Monthly High Income fund by investing in the F&C Commercial Property Trust.

The multi-asset fund of funds has increased its exposure to property to 6 per cent following the purchase of the F&C trust.

Nathan Sweeney, manager of the Architas Monthly High Income fund, said the trust pays a dividend every month, so it suits the payout profile of the fund.

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The trust has been managed by Richard Kirby since its launch in 2005 and has delivered a share price total return of 15.8 per cent in the past year, which puts it in the bottom quartile of the AIC Direct Property UK sector. However, it is in the third quartile for three-year and top quartile for five-year performance.

Mr Sweeney said he was increasing his exposure to property because the “fundamentals” for the sector “are very attractive right now”. He added that the “strong economic recovery in the UK” would lead to “continued appetite for property”.

Although Mr Kirby has traditionally been focused on prime, central London property, he had been “taking gradual steps to rebalance the portfolio towards higher-yielding parts of the market” because central London properties are “too expensive”.

Demand for property funds has been soaring this year, with the IMA Property sector regularly at or near the top of the list of top-selling sectors every month.