Credit Suisse Asset Management has launched a new £250m offshore UK commercial property fund. The CSAM UK Property Unit Trust will invest in a diversified portfolio of UK property, as well as other funds. The fund has a minimum subscription of £50,000 and is open to pension funds, life companies, charities and high net worth individuals.
The fund currently has a £40m investment portfolio and a current initial yield of 7.7%, excluding indirect investments.
Fund Portfolio Manager, Glenn Newson, commented: “Property is an asset class that has outperformed both equities and gilts over three, five and ten year time periods and continues to deliver solid performance derived from a typical income return of around 7% combined with the prospects for capital growth.
“In addition, this high income yield helps to match pension fund liabilities and the asset class shows very little correlation to the UK equity or bond markets, thereby providing an important source of diversification.”