Schroders has launched two new funds of funds to give investors exposure to European real estate.
The Schroder Real Estate Fund of Funds, which will be domiciled in Luxembourg, includes the European Fund I (EFI) and the Continental European Fund I (CEFI).
EFI will invest in unlisted property funds across Europe, while CEFI will exclude the UK and will be aimed primarily at UK investors.
Both will be advised by the global asset management company’s multi-manager team and will invest in a portfolio selected from its database of over 500 European funds.
The size of the funds, which will be closed-ended with fixed lives, is to be restricted to €250m (£168m) with a limited period for closing.
Neil Turner, Schroders head of international property investment and research, said: “We have brought together a first class research capability with experienced European investment professionals.
“The strong strategic case for European property plus the strength of our team has enabled us to secure in excess of €100m (£67m) of commitments for this product during pre-marketing.”
Jenny Buck, Schroders head of multi-manager, said: “This is a logical extension of our current multi-manager business where we are a market leader.
“These products bring together our strong European research capability with a tried and tested fund selection process provided by our multi-disciplinary investment team”
Mike Clarke, Schroders head of property distribution, said: “We deliberately chose a closed ended structure as we felt open ended vehicles provided very limited liquidity at the expense of investment return and the interests of the long term holders.
“Instead, we aim to operate a secondary market for units in the fund in the same way that we have pioneered for our UK fund range where we have traded over £1bn in the three years to December 2005.”
References: EGi News 16/10/06
