BMO Global Asset Management has added a long/short fund investing in US real estate to its range of property funds.
The BMO US Real Estate Equity Long/Short fund is a market neutral Ucits fund and targets capital growth over a three year period.
The fund is managed by the property equities team with portfolio construction carried out by Alban Lhonneur and Daniel Winterbottom, as well as Marcus Phayre-Mudge, head of property equities.
Phayre-Mudge says: “Real estate securities provide us with a broad, deep and comparable opportunity set within which to identify sources of return.
“The successful application of these insights within a long/short framework led to strong client demand, inflows and subsequently, the soft closure of our European focused F&C Real Estate Equity Long/Short fund. Our new BMO US REELS fund extends our range and brings new capacity to our clients.”
Head of UK intermediary Rob Thorpe says: “Many of our clients are seeking options with the potential for delivering consistent positive returns with low volatility. Importantly, when building portfolios they are looking for components that display a low level of correlation with other asset types. Back-testing shows that our new US REELS Fund is capable of delivering just these characteristics.”
Charges for the new fund were not immediately available.