Miton Asset Management’s Arcturus fund believes there is still potential for returns in overseas property funds.
Arcturus holds two bricks and mortar funds from Belgravia Financial Services Group – the Belgravia IFN China property fund and Belgravia European property fund.
The funds made a positive contribution to Arcturus towards the end of January with returns above 2 per cent and this will be reflected in the portfolio’s performance fig-ures for February.
Belgravia European property aims for income and growth by investing in European commercial properties that are let to big corporate tenants. It will focus on properties where good rental growth is expected or leases have fixed upward-only rent reviews.
Belgravia IFN China property focuses on well-let retail, office, industrial and residential properties in Greater China that benefit from active management.
Arcturus has also added Dolphin Capital Investors – a fund investing in residential resorts in South-east Europe. It is developing Spanish-style golf courses with housing developments in Greece at a fraction of the price of those in Spain.
Fund manager Tom McGrath says: “We like Belgravia as it is a smaller, nimbler fund manager than, for example, Aviva. The funds are open-ended but they are experienced investor funds and most managers do not have access to them.
“We added Dolphin capital because it ticked the right boxes. Spain is saturated with golf courses and resorts. You can sell a plot around a golf course for a fortune and Dolphin Capital has spotted opportunities to develop into Greece, where the weather is better and land is a fraction of the price compared with Spain. The share price flew up, then down again and got hammered but its net asset value is going up again.”