Morley has launched its High Income Property trust with a 6% yield and seeded it with £48m. ...
Morley has launched its High Income Property trust with a 6% yield and seeded it with £48m.
The fund, which Morley believes to be the highest yielding, property-based, authorised unit trust currently available, contains a portfolio of direct property and property-related corporate bonds. Most other other vehicles do not contain the latter asset class.
Direct property accounts for 75% of the portfolio, bonds represents 20% and cash 5%.
Alan Gadd, managing director at Morley, said: 'The combination of bonds and property should produce a higher yield with lower volatility than other property investment funds.'
Managed by Geraldine Davies, the High Income Property Trust opened for investment on 24 March and will sit within the IMA property sector.
In addition to High Income Property, Davies manages the Norwich Property unit trust, which was launched in 1991 and also falls within the property sector.
The income portion of the unit trust is managed by Donna Cabral, a member of the Morley corporate bond team.
The portfolio contains 13 holdings at present, although this will be increased as the fund grows in size.
Davies said the direct property holdings are biased towards the retail and industrial sectors, while steering away from offices.
Current regulations mean the fund cannot be offered directly as an Isa. Minimum initial investment is £10,000. The annual management charge is 1.25% and the initial charge is 5%.
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