Gravis Advisory, a subsidiary of Gravis Capital Management, has launched a specialist fund focusing on UK REITs.
The VT Gravis UK Listed Property Fund, or GULP, will be managed by Matthew Norris, Gravis’ new head of real estate securities.
It is the firm’s third open-ended investment company. Investments will primarily focus on UK REITs, but will also include property-related closed ended investment companies, corporate bonds and equities. It targets “long-term, dependable cashflows”.
The fund said it would have “minimal exposure to the UK retail sector” and will not hold any direct property investments.
It plans to deliver a regular quarterly dividend, low volatility and capped charges taken from capital. Target yield will be of 4% per annum.
The fund will launch with an offer period which will run from 1-31 October.
Norris said: “GULP will offer investors exposure to a diversified range of specialist UK real estate securities.
“It will focus on the UK property sectors supported by the most powerful current trends, which we identify as an ageing population, urbanisation, technological development, and changing residential requirements. Each of these trends is changing the real estate landscape and creating new opportunities for investors.”
The fund will offer daily dealing and will aim to remove the risk of gating. It aims to “avoid a repeat of the situation that followed the Brexit referendum in June 2016, when a number of funds holding properties directly were forced to temporarily close due to a lack of liquidity”.
William MacLeod, managing director of Gravis Advisory, said investors will be able to access the fund through offshore bonds, which are currently reviewing, and in some cases suspending, their holdings in open-ended property funds.
Key points:
- 0.7% AMC taken from capital and capped
- Minimum investments £100
- Yield objective 4% per annum paid quarterly
- Will be available on all major platforms and directly
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