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Tilney wins AA rating for hedge

Sarasin Chiswell, formerly Sarasin Investment Management, will include the property investment funds – the proposed UK version of real estate investment trusts – in its new multi-manager global property fund.

The Sarasin CI global property fund invests mainly in Reits in
countries such as the US and Australia but it can also invest in
closed-ended property funds and listed property companies.

Until Pifs are introduced in this country, exposure in the UK will be
derived from property companies such as Land Securities.

The fund has a minimum investment of £2,500 or £100 a month
and will be managed by Sarasin Chiswell with input from two external
advisors. Global surveyor Jones Lang LaSalle will make asset
allocation recommendations and research will be provided by UBS
Invest-ment Research.

Sarasin Chiswell will focus mainly on Reits because they offer
liquidity and are available in a sufficient number of countries to
provide geographical diversity. Property sectors in different
countries develop at different rates throughout the economic cycle so
the fund will invest in a sector when advantageous and look to other
sectors when conditions change.

Sarasin Chiswell director Simon Rivett-Camad, who will manage the
fund, says: “The joy of the fund is that it is positioned ahead of
the expansion of Reits-type vehicles in the UK.

“What we like about Reits is the ability to deal daily, because with
so many property funds you cannot get out when the economic cycle
changes. They also have more correlation with direct property than
listed property shares.”

Tilney is claiming a victory for hedge funds after its fund of funds
was given an AA rating by Standard and Poor’s.

It says S&P recognition for the open alternative growth fund and
the opal optimum strategy range is a shot in the arm for hedge funds
since it brought them into the mainstream.

Investment director Frances Clayton says S&P status means the
sector will appear on the radar of IFAs, which will increase sales
since hedge funds are unregulated and can only be sold with advice.
Each fund offers multi-strategy global exposure and investment on
portfolios including pension funds and offshore bonds.

Tilney has dedicated itself to increasing sales by a wide-ranging
education programme for intermediaries.

Clayton says: “IFAs, many of whom use S&P as a key selection
criteria when recommending mutual funds, now have a familiar badge of
quality attached to what for many is still an emerging asset class.
This rating demonstrates our commitment to transparency and improved
understanding of hedge funds.”

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