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Brooks Macdonald sets up new firm for Ucits property launch

Brooks Macdonald Funds has set up a joint venture called North Row Capital to launch a Ucits core property fund.

The IFSL North Row Capital fund will be managed by former Hermes real estate chief investment officer Steven Grahame who developed the concept for the fund. He will be supported by deputy manager Dr Niall O’Connor.

The fund will launch to retail investors at the end of January and aims to offer liquid exposure to the global real estate markets through investing mainly in property derivatives, equity and debt.

It is currently open to institutional investors with a minimum investment of £1m. Retail investments will be subject to a £10,000 minimum.

The fund is targeting returns of between 4.5 per cent and 5.5 per cent and looking to attract £100m assets in the first year.

North Row is also looking to launch further products aimed at offering liquidity within property investments.

The retail fund carries an 85 basis points charge for retail investors with an anticipated total expense ratio of 131bps.

North Row Capital is 60 per cent owned by Brooks, 30 per cent by Grahame and 10 per cent by Grahame’s business partner Gerald Parkes.

PMI Independent Financial Advisers director John Stewart says: “Brooks has obviously done its research and has seen a demand for this type of product. It is priced well but is definitely a fund for the more sophisticated investor.”

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