UK - Merrill Lynch Investment Managers' (MLIM) real estate team is set to launch the Merrill Lynch UK Property Fund of Funds aimed at institutional investors seeking diversified exposure to UK commercial property.
According to MLIM, as an asset class the UK commercial property sector was characterised by good income yields.
The manager added that when property was combined with an equity and bond portfolio, volatility of overall investment returns was reduced without sacrificing expected returns.
Head of MLIM’s real estate team Ian Mason (pictured) said: “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%. “
“Particularly with the trend to increase property weightings, feedback from some clients has been that they want greater fund diversification. An ideal starting point for these more cautious investors is the Merrill Lynch UK Property Fund of Funds product which provides an excellent addition to MLIM's property offering. “
He added: “It will allow clients to harness the skills that have made Merrill Lynch Property Fund (MLPF) successful and combine them with our detailed knowledge of the broader property industry.
MLIM's real estate team runs the £984m MLPF which was established in the UK in 1982 and is now a Jersey-based pooled investment vehicle.
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