Group adds property exposure to its Income Portfolio fund of funds product By Leo Bland Lazard Incom...
Group adds property exposure to its Income Portfolio fund of funds product
By Leo Bland
Lazard Income Portfolio is investing in the recently launched Portfolio Property fund as part of its move into the Managed Income sector.
The fund of funds has been switched from the former Fund of Funds sector to Managed Income as part of the Autif sector reclassification which came into force last month. As part of the switch, the Lazard vehicle is having to boost its fixed interest holdings and cut its equity exposure. As a result it is buying into Portfolio Property and now has a 4.6% exposure to it.
The fund is also increasing its holding in Scottish Widows Gilt Index Tracker up to 10% and has built up its exposure to the M&G Corporate Bond fund to around 9.4% as well as adding to its holdings in Fidelity Moneybuilder Income.
To reduce its equity exposure, the fund has sold out of Credit Suisse Monthly Income, Clerical Medical High Income and Threadneedle UK Equity Income. Over the past few weeks the portfolio's fixed interest holding has risen to 34% from 17% while the Lazard Income Portfolio's exposure to equities has fallen to 64% from 83%.
John Chatfeild-Roberts, direct-or at Lazard Asset Management, said: "The idea behind the fund has been to generate a high and rising income with an element of capital growth as well. Historically, we have tended to have 80% in equities and 20% in fixed interest.
"We have taken a position in Portfolio Property which we are viewing as a fixed interest rather than as an equity alternative. We think the outlook for commercial property is good. You only have to look around to see that the economy is doing well."
The Portfolio Property fund, launched earlier this year, offers a yield of 6.1% and invests 75% in commercial property and 25% in property shares, gilts or cash. The investment management of these asset classes is carried out within the Liberty International group, which owns Portfolio.
Property management firm Capital & Counties, which is owned by Liberty International, carries out the commercial property management. The property company shares and gilts/cash elements of the fund are run by Liberty International Asset Management.
Lazard Income Portfolio is second out of 10 funds in the Managed Income sector over three months on growth of 3.3%. The fund is fourth out of 10 over one year on growth of 1.7% and second out of eight over three years on growth of 45%.
Partner Insight: For Blackfinch, the arrival of its IHT portfolio services was a 'natural evolution' in the group's offering and points to an established track record of returning cash to investors.
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