Insight Investment will introduce a property fund of funds for high-net-worth clients later this month subject to approval of the Guernsey Financial Services Commission.
The Guernsey-domiciled Insight property portfolio unit trust will be the company's first fund to invest indirectly in commercial property.
Minimum investment is £100,000. The fund will aim for capital growth, with an expected target yield of 4.5 per cent a year.
It will be fully invested in a diverse portfolio of property funds from the start.
The fund's underlying portfolio will initially contain 10 funds that diversify across the office, retail and industrial sub-sectors.
The initial portfolio is valued at over £5bn and contains holdings such as the Paddington Central and Grosvenor Shopping Centre unit trusts.
Insight's team of 46 property specialists will review the portfolio and add funds as they see fit.
Spokesman Daniel Longden says. “Over time we would expect the property investment team to identify sectors and sub-sectors that have the potential to outperform, then select suitable funds.
“Some of these funds may be specialist funds, owned by just one or two people, that investors may find it difficult to get access to.”