Brooks Macdonald is set to launch an actively-managed UCITS core property fund aiming to achieve yields of up to 5.5% via its new joint venture North Row Capital.
The IFSL North Row Liquid Property fund, due to open in February, will invest mainly in property derivatives, as well as property equity and debt, to offer liquid exposure to the global real estate markets.
Steven Grahame will run the portfolio, assisted by deputy manager Niall O'Connor.
It is the first product from joint venture North Row Capital, which is 60% owned by Brooks Macdonald and provides services to Brooks Macdonald's funds arm.
The open-ended fund will aim to match direct property markets, with a target of yields of between 4.5% and 5.5%, and with low volatility.
The team will base their decisions on fundamental and quantitative research into mis-valuations between property debt, equity, and direct markets.
The fund has daily dealing, no performance fee, and no entry-exit fee. The minimum initial investment will be £10,000.
Grahame said property should be at the top of investors' 2014 wish lists: "Our approach in identifying relative value across property asset classes allows us to actively manage while avoiding the costs and delays in transacting physical property."
Brooks Macdonald chief executive Simon Wombwell said: “The IFSL North Row Liquid Property fund is a unique and innovative concept which we are excited to be bringing to investors. It offers a unique opportunity to invest in property through assets with daily liquidity, rather than slower-moving bricks and mortar.”
