Schroders to launch new ‘fund of funds’

Schroders today announced that it is to launch a new open-ended property fund next month, being promoted as the “fund of funds”. The Schroder Indirect Real Estate Fund (SIRE) will allow investors to gain exposure to around 600 properties, worth £5.2bn, with a minimum contribution of just £25,000.

The structure of the fund will be similar to the Osiris Fund, which was set up by ING Real Estate last month. It will allow investors to gain access to UK property unit trusts and limited partnerships that they may not otherwise be able to invest in.

However, unlike the Osiris Fund, SIRE will invest in all classes of UK property, targeting private investors and non-institutional companies as well a pension funds and institutional investors.

There will be two kinds of units available. The first will be for institutional investors and pension funds, and will have a minimum investment of £2.5m. The second will be aimed at private investors and have a minimum contribution of £25,000.

The initial closing date for contributions is 20 November. There will be monthly opportunities to invest from January.

Mike Clarke, Head of Product Development at Schroders, commented: “We want this to be our flagship fund for non-exempt investors, such as high net-worth individuals and tax-paying companies. We see this as the most efficient structure for the market.”