F&C brings blended property fund to UK

F&C brings blended property fund to UK

F&C Investments has brought its Property Growth & Income Fund onshore in a bid to drum up interest from UK investors still hungry for bricks and mortar.

The newly-created Oeic invests in both direct commercial property and quoted real estate securities primarily across the UK and Continental Europe.

The portfolio was originally launched in Guernsey in 2005 and is managed by Marcus Phayre-Mudge alongside Alban Lhonneur and George Gay,

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Mr Phayre-Mudge said: “In 2015, we expect income yielding real assets, such as property, to benefit from further reduction in both the price of risk and the lack of attractive alternatives – particularly given the skinny income returns from fixed income assets.

“We continue to seek out those pockets of real rental growth created by the lack of new development across Europe, and in physical property we look for buildings in a number of supply-constrained UK sub-markets.”

The existing Guernsey company has become a feeder to the new onshore fund for investors that do not wish to change their tax base.

Over the past three years the fund has achieved a gross return of 49.6 per cent versus an IA Property sector average of 35 per cent, according to FE Analytics.

The Oeic carries a minimum investment of £1,000 and the estimated ongoing charge is 1.21 per cent.