The fund, which will be co-managed by David Wise and Alex Walker, will aim to provide investors with high income as well as growth in income and capital over the longer term.
It will invest primarily in direct property, accounting for roughly 80% of its assets, but may also invest in indirect property and equities including property companies, real estate investment trusts and specialist property funds as well as cash.
The launch will mark the first time that the wider retail market will be able to access the expertise of the Kames Capital property team, which already manage a number of institutional funds such as the Kames UK Active Value Property Fund.
The investment strategy for the new vehicle will look to capitalise on the property team’s active value experience focussing on properties that offer asset management opportunities in the £2m to £10m price range. These properties are often too large for most private buyers and too small for institutional investors. In addition to active value style properties, a core property allocation will be maintained for liquidity purposes.
Commenting on the launch, Kames’ head of property investment Phil Clark said: ‘This fund builds on the investment track record we have developed in this strategy over nearly four years, and for which we are well known in the institutional market.
“The team’s expertise lies in in stock selection, asset management and releasing that added value through successful sale of the properties. The fund is consistent with our investment philosophy as active managers focussed on delivering attractive income returns to investors.’
