The co-manager of the £9bn suite of Merlin multi-manager products said he was keeping a watchful eye on the sector and had been for several months.
“The story is not over and I would like to find something of interest in property. The asset class has run a little [in the past couple of months] but I believe it has further to go.”
As the 30-year bull market in bonds was now over, he added, with any further upside facing technical challenges, real estate might look increasingly attractive.
Smith-Maxwell said investors had been far too reliant on fixed interest during a strong market at a time when the US had been trying to normalise its monetary policy, suggesting there was room on the horizon for another contender that was lower risk than equity.
The issue was that policymakers largely took their signals from employment figures, therefore they were already too late to act accordingly, he said.
“Employment is a known lagging indicator by at least 12 if not 24 months so the policymakers are immediately behind the curve.”
