Merrill Lynch has launched a new fund of funds enabling institutional investors to get a diversified exposure to the UK property sector. The new fund will give institutions the opportunity to profit from returns made by a range of other property funds without direct investment in one particular sector.
Ian Mason, head of Merrill Lynch Investment Management Real Estate, commented: “Our recent analysis of the risk, return and diversification benefits of property has suggested that pension funds and other long-term investors in this sector should increase property allocations to 10-15%.
“However, particularly with the trend to increase property weightings, feedback from some clients has been that they want greater diversification. The fund of funds will allow clients to harness the skills that have made Merrill Lynch Property Fund successful and combine them with our knowledge of the broader property industry.”
Source: Freeman / Property Week