Schroders unveils indirect property fund
UK –Schroder Property Investment Management is launching a UK indirect property fund to institutional investors.
Institutional investors and private clients will be able to access the UK indirect property industry through a fund of property funds vehicle.
As an open-ended unauthorised trust, Schroders’ indirect real estate fund will be able to invest in property through a range of different vehicles including open-ended and closed-ended property unit trusts, limited partnerships, listed and unlisted equities and property index certificates.
“This substantially increases the potential for investors to gain diversification and access to large, high quality buildings, which have historically tended to produce stronger returns than smaller properties,” says Schroders.
The fund will be structured around core investments such as balanced, liquid and large funds, alongside satellite investments such as vehicles with specific sector, geographical or management focus.
Mike Clarke, head of product development said: "Schroders has a strong presence in the UK property market and we have identified an opportunity to launch a fund of funds product which offers investors the opportunity to benefit from diversified property exposure.”
The Schroder Property Fund of Funds Team has managed portfolios for larger institutional clients under bespoke mandates for approaching six years and has more than 300 million pounds (433 million euros) of assets under management.