Kames Capital is an investment management company with offices in London and Edinburgh with 50bn GBP under management.
DevDosh Ltd found that the company can offer a selection of investments from ISA’s, Bonds, equities and direct property investments.
Kames Capital is launching a new fund that allows the investment of pension funds into the UK commercial property market by the way of investing into a range of open-ended property funds.
An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis.
This allows companies to trade in the UK property market almost on a daily basis.
The objective of the new fund is to equal the profits of the AREF/IPD.
The IPD UK Monthly Property Index tracks performance of 3,005 property investments, with a total capital value of GBP 45.1 billion as at May 2017. Results published 12 times a year, 10 working days after month-end.
They hope to achieve these mirrored returns with a low tracking error.
In DevDosh Ltd opinion, The company believes this may be a way to limit the liquidity risks that are associated with open ended property schemes.
This would not be a new approach for the majority of the small to medium sized pension funds as it is quite common place within the industry to invest in the property markets through a small number of property funds.
A number of investors did see the returns they were achieving affected last year with the Brexit vote due to a large number of open-ended funds ceasing trading as they suffered cash flow troubles because of investors withdrawing their capital.
Fund Manager Tony Yu said: “Our solution – investing in an actively managed diversified portfolio of open-ended balanced property funds – enables us to deliver returns with a risk profile appropriate for pension schemes seeking property market returns with an exceedingly low tracking error.”
This approach will appeal to those investors who are content with an element of risk within their investments, and are willing to take a little bit of a gamble in the hope of greater returns.
For those investors looking for great fixed term, fixed rate returns with the minimal amount of risk involved should look to the close ended property schemes.
For more information regarding property invesment, visit DevDosh Ltd today.